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Natural gas vs propane: what changes

Upfront changes, monthly costs, and practical tradeoffs

Last updated: January 28, 2026

Natural gas and propane often power the same household systems, including furnaces, water heaters, ranges, fireplaces, and generators. On the surface, switching between them can appear straightforward. In practice, the change affects how fuel is supplied, billed, planned for, and managed.

This article explains what actually changes when a home moves between natural gas and propane, with particular attention to rural homes and seasonal cottages where those differences tend to matter most.


Same appliances, different systems

Both natural gas and propane are gaseous fuels commonly used for space heating, hot water, cooking, and backup power. Many appliances are available in versions designed for either fuel, and some can be converted between the two.

The similarity ends at the appliance. Natural gas and propane operate within fundamentally different supply and delivery systems, which shapes cost structure, reliability, and homeowner responsibility.


How fuel supply fundamentally differs

The most important difference between natural gas and propane is how the fuel reaches the home.

Natural gas

Natural gas is delivered through underground distribution pipelines and supplied continuously. Homes connected to the gas grid draw fuel as needed and are billed based on metered consumption.

From a homeowner’s perspective, supply is effectively unlimited and invisible. There is no need to track fuel levels or schedule deliveries.

Propane

Propane is stored on-site in a tank, either above ground or buried. Fuel is delivered periodically by truck and consumed from that stored supply.

This changes how households think about usage. Propane requires forecasting, monitoring tank levels, and planning deliveries in advance, particularly in winter or at seasonal properties.


Upfront infrastructure changes

Switching between natural gas and propane often involves meaningful infrastructure differences.

Natural gas infrastructure

Where natural gas service is available, upfront changes may include:

  • Utility connection or service line installation
  • Meter installation
  • Pressure regulation equipment

Availability is location-dependent. Many rural and cottage areas are simply outside natural gas service territories, making connection impractical or impossible.

Propane infrastructure

Propane systems typically require:

  • Installation of a storage tank, above ground or buried
  • Compliance with setback and safety requirements
  • Regulators and supply lines to appliances
  • Ongoing access for delivery trucks

For rural homes, propane infrastructure is often the only viable option, but it places more responsibility on the homeowner for access and site conditions.


Appliance compatibility and conversion

While natural gas and propane appliances often look identical, they are not interchangeable without adjustment.

Key considerations include:

  • Burners and orifices are sized differently for each fuel
  • Appliances may require conversion kits to switch fuels
  • Some appliances cannot be converted and must be replaced
  • Improper conversion can reduce efficiency or affect safety

Once properly configured, appliance efficiency is usually comparable between fuels, assuming similar appliance models and operating conditions.


How monthly billing works

The billing experience differs significantly between natural gas and propane.

Natural gas billing

Natural gas is billed monthly based on metered usage. Costs tend to track closely with consumption, making bills relatively predictable from month to month, particularly in serviced urban areas.

Propane billing

Propane is billed per delivery rather than per month. This creates a “lumpy” cost pattern, where several months of usage may appear on a single invoice.

For cottages or seasonal homes, propane bills often arrive irregularly, depending on occupancy, weather, and delivery timing. Annual costs may be similar to natural gas in some cases, but the cash flow pattern feels very different.


Price stability and seasonality

Price behaviour also differs between the two fuels.

Natural gas pricing tends to be smoother over time, reflecting regulated distribution systems and continuous supply. Seasonal changes still occur, but they are spread across regular monthly bills.

Propane pricing is more exposed to:

  • Winter demand spikes
  • Delivery logistics
  • Timing of fills

As a result, propane costs are often lower in shoulder seasons and higher during peak winter demand, especially for unscheduled or emergency deliveries.


Reliability and outage considerations

Fuel reliability matters most in rural settings and during extreme weather.

Natural gas systems are generally reliable but rely on centralized infrastructure. Outages are uncommon, but when they occur, restoration depends on utility response.

Propane systems continue to function independently of the gas grid. As long as fuel remains in the tank, propane appliances can operate during broader infrastructure disruptions. This independence is one reason propane is commonly used for backup generators and off-grid or semi-rural homes.


Maintenance and responsibility differences

The shift from natural gas to propane also changes who manages what.

With natural gas:

  • Supply is utility-managed
  • There is little need for homeowner planning beyond usage

With propane:

  • Tank levels must be monitored
  • Deliveries must be scheduled or automated
  • Winter access must be maintained
  • Seasonal usage patterns must be anticipated

For cottages, this additional responsibility is often the most significant practical difference.


Environmental and regulatory considerations in Canada

Both fuels are subject to evolving regulatory treatment.

High-level considerations include:

  • Differences in emissions per unit of energy
  • Federal carbon pricing treatment for propane
  • Provincial tax structures

Regulatory charges can change independently of consumption, affecting total cost over time regardless of fuel choice.


Rural and cottage-specific tradeoffs

In much of rural Canada, natural gas is not an option. Propane becomes the default fuel for heating, hot water, cooking, and backup power.

Key rural considerations include:

  • Seasonal occupancy and irregular usage
  • Delivery access in winter
  • Larger tanks to reduce delivery frequency
  • Planning fills outside peak demand periods

In these contexts, predictability and planning often matter more than headline per-unit pricing.


What actually changes

Switching between natural gas and propane does not usually change how a home looks or functions day to day. The appliances may be the same, and comfort levels can be similar.

What changes is the underlying system: how fuel arrives, how it is billed, how predictable costs feel, and how much planning is required. Understanding those differences helps homeowners make informed decisions and avoid surprises, particularly in rural and seasonal settings.