Wisconsin has strong propane usage in rural areas. Modern cold-climate heat pumps deliver reliable heat and lower operating costs than propane for most homes.
Wisconsin Energy Rates: Heat Pump vs Propane
When comparing the cost of running a heat pump versus propane in Wisconsin, local energy prices are the deciding factor. As of recent data, Wisconsin residents pay an average of 16.5 cents per kWh for electricity, while propane averages around $2.50 per gallon.
Wisconsin winters are notoriously long and freezing. Propane is heavily used in rural areas, but heat pumps are increasingly adopted for the milder shoulder seasons. Use the calculator below to input your exact local utility rates and see whether a heat pump or propane is more cost-effective for your specific home.
🔥 Size Your Heat Pump & See Your Annual Fuel Savings
Find the heat pump tonnage your home needs (heating + cooling load from area, climate, and insulation) and estimate annual fuel savings compared to your current Natural Gas, Propane, Heating Oil, or Electric Resistance system. Built on ACCA Manual J residential heating-load figures and real-world COP (Coefficient of Performance) values.
1. Home & climate parameters
These determine your home's heating load and the recommended heat pump tonnage. Sized using ACCA Manual J factors for an 8-ft ceiling home.
2. Your current heating fuel
Pick your current fuel and the rate your utility charges. The annual bill is optional: leave it blank to use the modeled estimate from your home size and climate above, or enter your real 12-month total to calibrate the estimate to your actual home. Defaults are US national averages.
3. Heat pump efficiency & electricity rate
Cold-climate heat pumps maintain high COP down to -15°C / 5°F and qualify for higher rebates (IRA 25C, Canada GREA). Standard inverter heat pumps are cheaper upfront but lose efficiency below 0°C / 32°F.
✓Recommended system & savings
📊Compare every fuel (with your settings)
Same home, same climate, same heating load — but using the default rate for each fuel. Best row = lowest annual heat-pump bill after switching from that fuel.
| Current fuel | Default rate | Annual HP bill | Net savings |
|---|---|---|---|
| Natural Gas Furnace | $1.20 / therm | — | — |
| Propane (LPG) | $3.50 / gallon | — | — |
| Heating Oil | $4.50 / gallon | — | — |
| Electric Resistance | $0.15 / kWh | — | — |
📤Save & share
Heat Pump vs Propane in Wisconsin: What You Could Save
At Wisconsin’s typical propane price of about $2.20/gallon and an electricity rate near 20¢/kWh, here’s how the annual heating cost compares for a representative Wisconsin home (~65 MMBTU/yr heating load, cold-climate heat pump at COP 3.8). Use the calculator above with your home size and real bill for an exact figure.
| Heating system | Estimated annual cost |
|---|---|
| Propane furnace (~836 gallons/yr @ $2.20) | ~$1,839/yr |
| Cold-climate heat pump (~5,013 kWh/yr @ 20¢) | ~$988/yr |
| Estimated annual saving | ~$851/yr |
Figures are illustrative and depend on your home’s insulation, size, and actual usage — the interactive calculator personalizes all of this.
Cold-Climate Heat Pump Performance in Wisconsin
The old myth that “heat pumps don’t work in the cold” no longer holds. Modern cold-climate air-source heat pumps (ccASHPs) are rated to deliver their full heating output down to -13°F / -25°C and keep producing usable heat below that, thanks to variable-speed inverter compressors and enhanced-vapor-injection technology. In Wisconsin’s climate (Milwaukee and colder inland areas), the standard approach is to size the heat pump to carry 80–90% of the heating season and keep your existing propane system as automatic backup for the few deepest-cold nights — capturing nearly all the savings while keeping a safety margin.
Rebates & Incentives for Wisconsin Homeowners
Focus on Energy — Wisconsin’s statewide efficiency program — offers heat pump rebates, stacking with the 30% federal 25C tax credit.
Because heat pumps also provide efficient air conditioning in summer, many Wisconsin homeowners effectively get whole-home cooling as a free bonus when they switch for heating savings.
Frequently Asked Questions — Wisconsin
Heat pump performance in Wisconsin winters Wisconsin’s strong propane-heating population sees typical savings of $700–$1,300/yr switching to a cold-climate heat pump at current propane and electric rates.
Cost comparison: propane vs heat pump Cold-climate heat pumps rated to -13°F perform well through Wisconsin winters; Focus on Energy requires cold-climate-rated equipment for its rebates.
Focus on Energy or utility rebates Focus on Energy rebates plus the federal tax credit are the main incentives available to Wisconsin homeowners.
Related: refrigeration cycle diagram and parts.
Estimates vary by contractor. Compare free quotes from licensed local pros before you commit. Request a quote →
High-efficiency systems may qualify for utility rebates and federal or state incentives. Find current programs at ENERGY STAR & DSIRE.
Figures are reviewed by the Refcon HVAC engineering team using U.S. DOE, ENERGY STAR & ACCA Manual J data. Estimates only — confirm with a licensed pro.