EIA data through August 2026 · updated 2026-10-29

Heating costs in Tennessee

The cheapest way to heat a home in Tennessee at today's average prices is natural gas ($13.80 per million BTU of heat), then heat pump ($15.80). A heat pump costs 14.5% more to run than a gas furnace.

Propane$3.28/galOct 26, 2026 · +7.5% y/y

Natural gas$12.88/Mcfwinter 2025–26 avg. · Jul 2026: $20.35

Electricity13.4¢/kWhAugust 2026 · +2.5% y/y

Cheapest way to heat a home in Tennessee

cost of the same amount of heat

Your home's heating need per winter: 50 million BTU

Heat source	Price used	Per million BTU of heat	Per winter
Natural gas cheapest	$12.88/Mcf · winter 2025–26 avg.	$13.80	$690
Heat pump	13.5¢/kWh ÷ COP 2.5	$15.80	$790
Electric resistance	13.5¢/kWh · winter 2025–26 avg.	$39.50	$1,975
Propane	$3.28/gal · Oct 26, 2026	$39.79	$1,990

How we compare: fuel price ÷ (energy content × efficiency). Assumptions — heating oil 138,500 BTU/gal at 85%, propane 91,500 BTU/gal at 90%, natural gas 1,037,000 BTU per Mcf at 90%, electric resistance 100%, heat pump seasonal COP 2.5 (lower in very cold weather). Gas and electricity use last winter's average price; oil and propane the latest weekly survey. Delivery fees, tank rental and fixed charges vary and are not included.

Propane in Tennessee, winter by winter

2023–242024–252025–262026–27 (this winter)Weekly survey, Oct–Mar · hover a point for the exact price

U.S. average: $2.73/gal. Source: EIA State Heating Oil and Propane Program (residential, weekly).

Natural gas price in Tennessee

Residential natural gas, $ per McfMonthly · summer prices per Mcf run higher because fixed charges are spread over less gas

Average price paid by homes, including delivery charges. Source: EIA Natural Gas Monthly.

Electricity in Tennessee

Electric heat and heat pumps run on your utility's rate. See Tennessee electricity rates by utility and ZIP code →

Questions

How much is propane in Tennessee?

$3.28 per gallon for homes in the EIA survey of Oct 26, 2026 (+7.5% vs. a year earlier).

Is a heat pump cheaper than gas in Tennessee?

Not at average prices: a heat pump (seasonal COP 2.5) costs $15.80 per million BTU of heat, 14.5% more than a 90% gas furnace at $13.80. A higher-efficiency heat pump or a lower electricity rate can change this.

What is the cheapest way to heat a home in Tennessee?

At current average prices: natural gas $13.80, heat pump $15.80, electric resistance $39.50, propane $39.79 per million BTU of delivered heat (cheapest first).