What a residential propane tank looks like
Most US residential heating tanks are 500-gallon aboveground ASME tanks — horizontal cylinders about 9 feet long and 3 feet in diameter, painted white or light grey (light colours minimise heat absorption). They sit on a concrete pad or metal cradle. A dome on top houses the service valve, fill valve, relief valve and gauge.
Smaller installations use 100 lb upright cylinders or 120-gal vertical ASME tanks. Larger installations step up to 1,000-gallon horizontal tanks (~16 feet long). Underground tanks have only a small dome visible at grade.
Who owns the tank
In the US, dealers own most residential propane tanks. You lease the tank, the dealer fills it. Customer-owned tanks exist (purchased upfront for $1,000–$3,500) but are the minority. Ownership shapes whether you can shop dealers freely — see buying or renting.
Where they sit
NFPA 58 governs placement. Typical setbacks: 10 ft from buildings and property lines for tanks under 500 gallons; 25 ft for tanks 501–2,000 gallons. Underground tanks: 10 ft regardless of size. See tank distance rules.
FAQ
Where does the propane come from?
Your dealer's truck delivers from a local terminal, which receives propane railed or pipelined from regional fractionators. The wholesale benchmark is Mont Belvieu, Texas — the US propane fractionation hub. See current US propane prices.
How much does a residential propane tank cost?
Leased tanks have no upfront cost but carry annual rent ($50–$150, often waived above minimum purchase). Customer-owned 500-gallon aboveground tanks: $1,000–$2,000. Underground: $1,500–$3,500 including excavation.