All About Propane Appliance Savings

Mar 25, 2025


Scott Richardson
Energy Division Manager


PROPANE APPLIANCES are mission critical during this time of year, but soon the weather will change, and spring cleaning will be on our minds. If a propane appliance is something you’re having problems with this year, or you’re thinking about replacing or upgrading that older appliance, you should know that Key Cooperative works with the Iowa Propane Gas Association to provide propane appliance rebates.

Propane is considered a green fuel by the U.S. Department of Energy because it has no greenhouse gas emissions and is ecofriendly before and after combustion. Propane is also considered to be more reliable than electricity and more efficient than natural gas because of its availability and the fact that more than double the BTUs are produced when it’s used for heating. Newer appliances tend to burn fuel far more efficiently than older versions. If you’re looking at buying or replacing a water heater or furnace—or if you already did so after January 1, 2024—you can apply for propane rebates.

The rebates require a few things:
  • The appliance must have been installed after January 1, 2024.
  • The appliance needs to have an approved leak test inspection done by your propane provider after installation.
  • A water heater must have an energy factor of 0.64 percent or higher.
  • A furnace must have an AFUE rating of 95 percent or higher.
  • A boiler system must have an AFUE rating of 85 percent or higher.
If you don’t know the answers to these requirements, we can find them for you with a little information about your new appliance. As seen in the graphic, a new tankless water heater is eligible for a $300 rebate. A new furnace or boiler system is eligible for a $250 rebate, and a tank type water heater is eligible for a $200 rebate.

Get started today:
Contact the Key Energy Department at 800-469-1040 with your questions regarding the propane appliance rebate program, but don’t wait too long—funding is limited!



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