If you heat your home with propane in northern Wisconsin, your heating bill is tied to global energy markets — just like gasoline. When natural gas prices spiked after the Ukraine invasion, propane followed. When Iran disrupted oil markets this spring, propane moved again. Your cost of staying warm is connected to events thousands of miles away.

And unlike driving, you can't just heat less to save money. In a Wisconsin winter, you need what you need.

Cold-climate heat pumps are changing that equation. They run on electricity, which is generated locally and priced far more predictably than propane. Today's models work well below zero — the Department of Energy now certifies units for full heating capacity at five degrees and colder. Propane households that switch can save five hundred to fifteen hundred dollars a year.

Your heating bill doesn't have to be hostage to the next global crisis.

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Propane prices are tied to global energy markets — just like gasoline. Propane is derived from natural gas liquids, and its price tracks global energy markets closely. Prices spiked during the 2022 Ukraine invasion and again during the 2026 Iran/Hormuz crisis. Wisconsin Gas customers paid 24% more for gas in May 2022 than October 2021, and 34% more in winter 2021-22 than winter 2018-19. (RMI Wisconsin Analysis)

About 300,000 Wisconsin households use delivered fuels (propane, fuel oil) or electric resistance for heating — all of which are expensive and/or volatile. (RMI)

Cold-climate heat pumps now work well below zero. The DOE's Cold Climate Heat Pump Challenge produced units that maintain 100% heating capacity at 5°F without auxiliary heat. Modern models maintain 50-70% capacity at 0°F and 30-50% at -10°F. Trane has tested a prototype to -23°F. They can handle 80-90% of heating needs in Wisconsin's climate. (WI PSC Heat Pumps; Center for Energy and Environment)

Savings for propane users: RMI's Wisconsin-specific analysis finds propane-to-heat-pump switchers save over $500/year. National data shows $600-$1,500/year savings depending on propane prices and local electricity rates. The Wisconsin Office of Energy and Climate Change states: "The economics of heat pumps are also good if you currently heat with propane, fuel oil or electric resistance heat." (RMI; Dane County Climate Action / WI OECC)

Dual-fuel for extreme cold: The WI PSC recommends dual-fuel systems — a heat pump handles most of winter, with a propane or gas furnace kicking in at a preset low temperature. This provides "flexibility and confidence" for the coldest days. (WI PSC)

Financial help available: The IRA provides up to 30% tax credit for heat pump installation. Focus on Energy (Wisconsin) offers additional rebates. Many Wisconsin electric cooperatives and municipal utilities also offer heat pump rebates. (WI PSC)

Related Civic Minute segments: The Pipeline You've Never Thought About (CM-27), The Sun Doesn't Send a Bill (CM-30), EVs in a Wisconsin Winter (CM-36)