Step 1 — Size
Start with annual propane consumption. A 2,000 sq ft home heating with propane in a moderate climate burns 800–1,200 gallons per winter; very cold climates push that to 1,500+. Pick a tank holding at least 6 months of usage at 80% fill: typically 500 gal aboveground for most US heating customers, 1,000 gal for very cold climates with large square footage. See propane tank sizes.
Step 2 — Ownership
Lease (dealer-owned) or customer-owned. Leases dominate the US market for convenience; customer-owned tanks pay back for high-volume users in 3–8 years and unlock shop-around freedom. See buying or renting.
Step 3 — Location and orientation
Aboveground or underground. Aboveground costs $500–$1,500 to install, is easier to inspect, and is the US default. Underground costs $1,500–$3,500 but only the dome shows above grade — better for HOA-sensitive properties. NFPA 58 setback rules apply either way: 10 ft from buildings and property lines for 125–500 gal tanks, 25 ft for 501–2,000 gal.
Step 4 — Installation
Most customers have their leased tank installed for free by the dealer. Customer-owned tanks require permitted installation by a licensed contractor — typically $300–$1,000 for aboveground, $1,500–$3,500 for underground. See tank installation cost and installation cluster.
FAQ
How long does a propane tank last?
ASME tanks (the permanent residential type) have a service life of 30+ years with proper maintenance. DOT cylinders (portable 20 lb / 100 lb) require recertification 12 years after manufacture, then every 5–7 years.
Can I install my own propane tank?
No. Tank installation requires a licensed propane technician in every US state. NFPA 58, state fire marshal codes, and local permitting rules all apply. DIY installation is illegal and uninsurable.