If you're currently heating with propane and natural gas service becomes available in your area — or you're weighing the switch proactively — the conversion involves more than just swapping a hose. Here's exactly what it takes to convert from propane to natural gas in Minnesota, and whether the economics make sense.
Why Natural Gas vs. Propane Matters in Minnesota
Propane and natural gas both work well as furnace fuels, but the cost difference is substantial. Natural gas in Minnesota runs approximately $0.90–$1.20 per therm. Propane is measured in gallons, with 1 gallon containing approximately 0.91 therms of energy. Propane prices in Minnesota range from $1.80–$3.00+ per gallon ($1.98–$3.30 per equivalent therm) — often 2–3× the cost of natural gas.
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On a 2,000 sq ft Minnesota home using 1,200 therms annually:
- Natural gas cost: ~$1,080–$1,440/year
- Propane cost: ~$2,160–$3,960/year
- Annual savings from switching: $1,000–$2,500+
That payback math is compelling enough that conversion often makes sense whenever natural gas service is available.
The Three Components of a Propane-to-Gas Conversion
1. Gas Line from the Street to Your Home
This is the utility's job — and they often do it for free or at subsidized cost when bringing a new customer onto the natural gas system. Contact CenterPoint Energy (or your local utility) first. They will:
- Run a supply line from the main in the street to your meter location
- Install the meter and regulator
- In many cases, cover this cost entirely as part of customer acquisition
Timeline: 4–12 weeks depending on the utility's schedule and permit requirements. This is often the longest lead-time item in the whole conversion.
2. Interior Gas Piping to the Furnace
Once the meter is installed, a licensed plumber or gas fitter runs supply piping from the meter to your furnace, water heater, range, dryer, and any other gas appliances. If your home has existing propane piping, this infrastructure may be reusable after inspection and pressure testing.
Cost: $500–$2,500 depending on distance, number of appliances, and pipe material (black iron, CSST, or copper).
3. Furnace Conversion or Replacement
This is where it gets nuanced. Natural gas and propane burn differently — propane has higher BTU content per cubic foot and requires different orifice sizes and gas valve settings. You cannot simply connect a propane furnace to natural gas without conversion.
Two options:
- Furnace conversion kit: Many furnaces (including most Goodman models) have an available LP-to-NG conversion kit — typically a new orifice set and sometimes a gas valve adjustment. Cost: $50–$200 for parts, $150–$400 installed by a tech. Only valid if your furnace is in good condition and the manufacturer offers a kit for your model.
- New furnace: If your propane furnace is 12+ years old, conversion to natural gas is an excellent opportunity to replace it with a new high-efficiency unit. You'd be doing the work anyway, and a new 96% AFUE gas furnace immediately starts saving on both efficiency and fuel cost.
Other Gas Appliances to Convert
When converting the furnace, coordinate the conversion of all propane appliances:
- Gas water heater (conversion kit or replacement)
- Gas range/oven (conversion kit — usually included with the appliance)
- Gas dryer (conversion kit)
- Gas fireplace or log set (conversion kit available from manufacturer)
Converting all appliances at once is more efficient than doing them piecemeal. Your licensed gas fitter can often handle all conversions in one visit.
The Propane Tank
After conversion, your propane tank needs to be emptied and removed. If you rent the tank from your propane supplier, they'll pick it up. If you own the tank, you can sell it or have it removed for a fee. Use remaining propane in the tank before cutover if possible — or ask the supplier to credit back unused propane.
Total Conversion Cost Estimate (Minnesota)
| Item | Cost Range |
|---|---|
| Utility service line + meter (CenterPoint) | $0–$1,500 (often free for new customers) |
| Interior gas piping | $500–$2,500 |
| Furnace conversion kit (if keeping existing) | $200–$600 installed |
| New factory-direct furnace (if replacing) | $900–$2,200 equipment + $800–$1,500 labor |
| Water heater conversion | $150–$400 or replacement cost |
| Propane tank removal | $0–$300 (rented) / variable (owned) |
| Total estimate (furnace replacement path) | $3,500–$7,000 |
With annual fuel savings of $1,000–$2,500, the payback period is typically 2–5 years. After that, you're banking the difference every winter.
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