
Home heating
Propane or natural gas: how are Colorado mountain homes heated?
In Colorado's mountain towns, the heat source depends on the street: a home on a gas main burns natural gas, and a home past it runs on propane or electric.
A live person answers. Not a robot, not a phone tree. Updated September 2026.
Photos: Ski lift climbing the mountain with snowy peaks, morning light, Live Kaiah (Unsplash).
Homes on a gas utility's lines burn natural gas, and homes past them burn propane from a tank. One gallon of propane holds 91,452 Btu, equal to 88 cubic feet of natural gas, per the EIA. At EIA's last Colorado residential price of $2.302 a gallon, propane costs $25.17 per million Btu before furnace losses.
$2.302 a gallon.
EIA's Colorado residential price for the week ending March 30, 2026.
500 gallons holds 400.
Propane tanks fill to 80% of capacity.
$0.1155 per kWh.
CORE Electric's 2026 residential energy rate.
$1,000 state credit.
Colorado's 2026 credit for air-source heat pumps, passed on as a contractor discount.
How do propane, natural gas and electric compare on Btu?
- Propane: 91,452 Btu per gallon. Per the U.S. Energy Information Administration.
- Natural gas: 1,036 Btu per cubic foot. One gallon of propane equals 88 cubic feet of natural gas.
- Electricity: 3,412 Btu per kWh. One gallon of propane equals 26.8 kWh.
- Propane per million Btu. At $2.302 a gallon, propane costs $25.17 per million Btu before furnace losses.
- Electric resistance per million Btu. At CORE's $0.1155 per kWh, electric resistance heat costs $33.85 per million Btu. A heat pump delivers more heat per kWh than that.
Ask the seller for 12 months of gas, propane and electric bills. That is the real cost of the house.
What size propane tank does a mountain home use?
- Tanks fill to 80%. A 500-gallon tank holds 400 gallons, per AmeriGas.
- A 1,000-gallon tank holds 800. Bigger tanks mean fewer winter deliveries up a steep road.
- What a fill costs. 400 gallons at $2.302 a gallon is $920.80.
- Owned or leased. Find out who owns the tank before closing. A leased tank stays with the propane company.
How do you find out if a mountain home has natural gas?
- Look for a gas meter or a tank. A home on natural gas has a utility meter. A home on propane has a tank on the lot or buried in the yard.
- Check the address with the utility. Colorado Natural Gas runs an address lookup map for its service areas.
- Read the bills. The seller's bills show the fuel, the supplier and the winter usage.
What does electric heat cost in the foothills?
- CORE rates rose 6.7% in 2026. The increase took effect with January 2026 bills.
- Three parts to the bill. CORE residential members pay a $20 basic charge, $0.1155 per kWh and an on-peak demand charge of $5.47.
- Demand charges reward steady use. Running heat, a car charger and heat tape at the same hour raises the peak.
- State heat pump credits. $1,000 for air-source, $2,000 for ground-source and $250 for heat pump water heaters installed in 2026.
Radiant heat or forced air in a mountain home?
- Both run on the same fuels. A boiler for radiant floors and a furnace for forced air both run on gas, propane or electric.
- The fuel sets the bill. Compare Btu prices first, then the system.
- Check the service records. Ask for the boiler or furnace age and service history before inspection.
Call the Kenna Real Estate Group at 303-955-4220 for help reading a seller's utility bills before you write an offer.
Questions
Quick answers.
Is propane more expensive than natural gas?
Compare per Btu. Propane holds 91,452 Btu a gallon and natural gas 1,036 Btu a cubic foot. Price both from the seller's bills.
What does propane cost in Colorado?
EIA's last weekly Colorado residential price of the 2025-26 heating season was $2.302 a gallon, week ending March 30, 2026.
How much propane does a 500-gallon tank hold?
400 gallons. Propane tanks fill to 80% of capacity.
What is CORE Electric's residential rate in 2026?
$0.1155 per kWh, a $20 basic charge and an on-peak demand charge of $5.47.
What is the Colorado heat pump tax credit for 2026?
$1,000 for air-source, $2,000 for ground-source and $250 for heat pump water heaters.
Sources
- EIA: Btu conversions
- EIA: Colorado propane prices
- AmeriGas: tank sizes
- CORE Electric 2026 rate changes
- Colorado heat pump tax credit
- Colorado Natural Gas service areas
Rules, rates and dates change. The county, town or state office named above has the current version.
Go deeper
Where to go next.
The map
Where the mountain towns are.
Every pin opens that town's page. Drive times from downtown Denver, without traffic.
- Front Range foothills
- I-70 corridor
- Peak to Peak
- Summit County
- Resort
- Tap a town to open its page
Outline: U.S. Census Bureau. Roads from downtown Denver: OSRM on OpenStreetMap. Town points: OpenStreetMap and USGS. Drive times without traffic.
Private consultation
Ask us about your mountain home.
303-955-4220A live person answers. Not a robot, not a phone tree.
- Every mountain town. Evergreen and Conifer to Summit County and Steamboat.
- Wildfire, water, winter. Insurance, well, septic and access checked before you offer.
- One point of contact. From the first call to the closing table.
Colorado Mountain Home Finder is part of the Kenna Real Estate Group at Keller Williams DTC (KWDTC).

