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Why would a builder install propane appliances in a new home?

Did you ever wonder why a new home builder might decide to install a propane furnace? Well, the builder may be getting a $1,500 kickback from a trade group called the "Propane Education & Research Council."

Just to make sure you understand what this program entails, the website explaining the program includes a photo of contractors installing a huge underground propane tank.

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Propane incentive program.jpg34.92 KB
Asked by Martin Holladay, GBA Advisor
Posted May 15, 2014 4:57 AM ET

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3 Answers

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1.

Propane heat still makes sense vs. electric resistance heat if the location is remote enough that natural gas is unavailable.

Minisplits usually heat cheaper than propane, so it's shameful for a builder to screw his customer just for that $1500.

Answered by Kevin Dickson, MSME
Posted May 15, 2014 1:05 PM ET

2.

Kevin,
Right. There are lots of incentives out there, but usually the incentives are more transparent to the eventual owner of the equipment. In this case, most home buyers probably don't know that the builder chose the fuel for the heating equipment based on an incentive that the builder put in his pocket.

Answered by Martin Holladay, GBA Advisor
Posted May 15, 2014 1:16 PM ET

3.

I live in zone 6, with $0.13 electricity. Looking at GSHP and air to water.

I can understand why when you can get a Rinnai Combi 110 kbtu for under $3500

Answered by Trevor Chadwick
Posted May 15, 2014 7:39 PM ET

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