Get quotes for tank installation

Like all other forms of energy (electricity, heating oil, natural gas, etc.), propane is a considerable investment and an important part of your daily life. However, unlike other forms of energy, the propane market is not regulated at federal or state level except in terms of safety. Therefore, it is advisable to get quotes from different propane companies to ensure the arrangement you decide on is the most appropriate for your situation. Propane tank installation is no exception in this regard.

Installation quotes for purchased tanks

Buying a propane tank is expensive: most homes require a 500-gallon tank (and the average residential propane consumption in the US is 464 gallons per year), which costs between $700 and $2,500 if it is aboveground and between $1,500 and $3,000 if it is underground. But propane companies usually require you to fill your tank with propane upon installation, which at December 2012’s average US price (US Energy Information Administration: $2.413 per gallon) amounts to an extra $965 since propane tanks are usually filled to 80% capacity (and not 100%).

Tank size (gallons) and type

Low-end cost, est. (US$)

High-end cost, est. (US$)

120 aboveground

350

600

250 aboveground

450

1,000

500 aboveground

700

2,500

1,000 aboveground

1,600

3,200

500 underground

1,500

3,000

1,000 underground

2,000

3,500

 

Installation quotes for rented tanks

Renting a propane tank is less expensive since you are only required to pay between $25 and $250 per year to lease the tank. However, propane companies will also require you to fill the tank with propane on installation and are likely to charge you a higher propane price per gallon (between $0.05 and $0.35 per gallon) as well as between $4 and $20 for delivery. Based on December 2012’s EIA national average propane price ($2.413/gal), filling your tank could therefore amount to between 985 and $1,105 on installation.

Service

Cost (dollars)

Rental fee (includes tank installation)

$25-250

Extra charge for propane

$0.05-0.35/gal

Flat fee

$4-20 per delivery

What does the quote include in terms of and beyond tank installation?

Whether you buy or rent a propane tank, installation is taken care of by propane companies and included in the global price they quote. However, propane companies do not include the same things in their tank installation and you should compare quotes to check whether or not each propane dealer applies for a tank permit for you, what they charge to bury your tank (if underground), what their price is for regulators, valves, gauges and piping, and how much they charge for a leak test. Crucially, you should ask whether each propane company offers gas system appliance (GAS) checks to ensure that your system is not only connected by functioning properly.