Tank installation cost

Installing a propane tank costs between $350 and $3,500 if purchased, and between $25 and $250 per year if leased.

Exact costs vary significantly depending on propane companies and services included. For example, whereas Irving Energy prices a propane system at $7,000 on average, Alpine Gas charges $599 for a 150-gallon propane tank but $300 extra for underground tank excavation. This makes comparing detailed quotes from different propane companies all the more important.

Propane tank purchase and installation average prices

However, generally, buying and installing a propane tank costs roughly the following:

Tank size (gallons) and type

Low-end cost (US dollars)

High-end cost (US dollars)

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

Propane tank lease and installation average prices

If rented, propane tank installation costs tend to be covered in the yearly rental fee. The fee varies depending on whether the propane tank is aboveground or underground more than on tank size. However, it is important to check what your propane company is charging you for propane as some companies charge more per gallon of propane (or a flat fee) if the tank is leased than if it is owned by the customer. This can be negotiated with your propane company.

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

Other fees for propane tank installation

Regardless of whether you have bought or are renting your propane tank, the following factors are sometimes included in propane tank installation costs and it is advisable to check to ensure you know how much you are paying for the service:

  • Installation and labor fees: Whether you have decided on an aboveground or an underground tank, it will need to be installed and if installation fees are not include they vary significantly depending on hourly labor costs. In this regard, it is important to remember that installing an underground tank takes around twice as long as installing an aboveground tank.
  • Excavation and burial fees: Underground tanks are buried, which requires digging a hole that is large enough for it to fit. Some companies offer this service but you should check how much companies charge; excavation for underground tanks is something that it is safe to do yourself.
  • Tank bases and support blocks costs: Aboveground tanks are not simply laid down on the ground but have to be set up on concrete support blocks. Again, check with different propane companies to find out whether this is included and what the fee is if is not. Concrete slabs usually cost around $75 per yard.
  • Regulators: Seldom are regulators included in a propane tank installation service. Unless you have a particularly important BTU load you are likely to need only a two-stage regulator, which costs between $30 and $100 depending on total appliance load.
  • Permits: Although most propane companies will offer to apply for a propane tank permit on your behalf, this service is rarely included in the propane tank installation fee. Propane tank permits cost between $25 and $50 and last for the lifetime of the tank. This fee is not determined by the propane company but by local authorities so you will not be able to influence its price.

Cost of filling your tank as part of the installation

Remember that propane companies will not usually install a propane tank on your property unless you fill it with their propane. Depending on tank size and propane price, this is more or less expensive. To give you a rough idea based on national averages, the table below shows how much it cost to fill different size propane tanks to an 80% capacity (customary fill level).

Given that propane prices vary significantly between propane companies and regions in the US (sometimes by several dollars per gallon), if you have a large propane tank this may be the most expensive aspect of your propane tank installation cost so it is crucial that you find a company with the most advantageous propane price and not rely simply on installation costs.

Tank size (gallons)

Cost to fill at 80% (dollars)

120

231

250

482

500

965

1,000

1,930

Cost of filling a propane tank calculated at national EIA average price ($2.413/gal) for December 2012