Step 1 — Estimate your annual usage
Start with what you'll use propane for: heating, water heating, cooking, generators? Estimate gallons/year using calculate your propane usage. Typical ranges:
- Cooking only: ~50 gal/year
- Cooking + water heating: ~250 gal/year
- Moderate-climate heating household: ~1,000–1,500 gal/year
- Cold-climate heating household: ~1,500–2,500 gal/year
Step 2 — Pick a tank size
Standard rule: tank should hold 6 months of winter usage at 80% fill. For most US heating customers that means a 500-gallon aboveground tank. Light users: 120 or 250 gallons. Very cold climates with large homes: 1,000 gallons. See propane tank sizes.
Step 3 — Lease or buy the tank
Lease is the US default — $0 upfront, $50–$150 annual rent often waived above minimum purchase, dealer maintains. Buy if you'll burn 1,000+ gal/year and stay 5+ years — $1,000–$3,500 upfront, no annual rent, shop any dealer at every fill. See buying or renting.
Step 4 — Pick a dealer
Get three itemised quotes — one national, one regional, one local independent. Compare on all-in annual cost (gallon rate × usage + tank rent + delivery surcharges + service-call rates), not headline price. See how to select a propane company.
Step 5 — Pick a contract type
Most US heating customers default to auto-fill + market rate — dealer schedules deliveries, you pay each delivery at the current rate. Variations: pre-buy (lock in summer rates), capped (ceiling protection), budget billing (monthly cash-flow smoothing). See fixed propane pricing.
Safety basics every new user should know
- Propane has an added odorant (ethyl mercaptan) — smells like rotten eggs
- Propane is heavier than air and pools low — gas detectors mount near the floor
- If you smell gas: LEAVE the building, SHUT OFF the tank service valve, CALL the dealer from outside
- Never DIY any work on the tank, regulator or appliances — licensed technicians only
- Out-of-gas events require a leak test by a licensed tech before service resumes
FAQ
How long until I'm operational?
Typical first-time install: 1–2 weeks from contract signing to first fill, including permits, install scheduling and inspection. Faster for leased tanks at the dealer's standard residential install template; longer for customer-owned or underground installations.
What if I'm already moving into a home with propane?
Set up an account with the dealer who serves the property — usually whoever installed the existing tank. You can switch later (see switching propane companies), but start with continuity to avoid a service gap during move-in.