How Much Does A Propane Tank Cost?

Propane Tank Cost

The cost to install a propane tank for a house ranges from $700 to $4,500 installed but on average, expect to pay about $1,500 to install a 500-gallon above-ground propane tank and $2,000 for a 500-gallon underground tank. Prices depend on the size of the house, how much of the home is gas-powered, and the climate, if heating is included.

For small grilling and auxiliary propane tanks, expect to spend between $50 and $150. A standard 20 lb. tank costs around $35 while a larger 100 lb. tank costs about $150.

Table of Contents

1. Propane Tank Cost
2. Propane Tank Prices By Size
• By Gallon
• By Pound
• Large Tanks
• Small Tanks
3. Cost to rent a propane tank
4. Costs of Propane Tanks for the Home
• Underground Buried Tanks
• Above-Ground Tanks
5. Propane Prices Per Gallon
• Propane Cost Per Pound
• Propane Usage Estimator
6. Should I Buy Or Lease A Propane Tank?
• Buying New vs. Used
7. What You Need To Known
8. Frequently Asked Questions
9. Oil, Fuel & Water Tank Installation Services

Propane Tank Prices By Size

To estimate the cost of a propane tank for your home, you will need to decide how big your tank needs to be. Most tanks can be installed either above or below ground.

Gallon Propane Tank Costs

A 120- to 325-gallon tank will take care of powering heating, cooking, fireplace, dryer, and standard hot water. ^[1] However, you might want to spread out the number of times you refill it, in which case a 500-gallon tank would be more practical, only needing a refill every six months. A considerably larger tank would be required for multi-zoned homes and homes with hot tub and jacuzzi use.

Average Prices By Pound

Price for Large Propane Tanks

The prices to buy a large propane tank averages $1,500 for a 500-gallon tank, and $2,500 for a 1000-gallon tank. A 500-gallon tank is ideal for residential use. Propane tanks larger than 500-gallons will require permanent underground installation in most cases.

Larger tanks are required for people who need to use around 5,000 gallons or more of propane per year—usually large business or farms, who can use it for farming tasks like corn drying. Ranging from 2,000- to 30,000-gallon tanks, costs vary from $11,000 to $80,000. Common tank sizes are 2, 4, 6, 12, and 18,000 gallons. 30,000-gallon tanks can power a small, sub-metered community.

Cost of Small Propane Tanks for Grills

For small grilling and auxiliary propane tanks, expect to spend between $50 and $150 for an empty shell. A standard 20 lb. tank costs around $35 while a larger 100 lb. tank costs about $150. These small cylinder tanks are perfect if you need to power something little like an outdoor grill or backup generator. There are specials for buying an extra tank at the exchanges too.

Small Propane Tank Sizes

Propane tank sizes can be confusing, being measured in pounds, gallons, and capacity. There are single use and refillable portable tanks. The smaller tanks or cylinders are as follows:

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Cost to rent a propane tank

Renting a propane tank costs $50 to $200 per year on average, depending on the size, location, and supplier. Leasing a propane tank typically includes free installation and repairs but requires a minimum annual propane-usage amount. Plus, refills must come from the same company at higher propane rates.

The top companies that lease propane tanks are:

• AmeriGas
• Ferrellgas
• Suburban Propane

Some propane leasing companies have a minimum order of 100 gallons.

Costs of Propane Tanks for the Home

If you only need to run a few home appliances, a 250-gallon propane tank costs $1,200 to install. To power all systems in your home, a 500-gallon tank will cost $1,500 to $2,000 for installation. You may prefer the extra storage of a 1000-gallon tank for a cost of $3,100 to $4,500 installed.

Underground Buried Propane Tank Cost

An underground and buried propane tank costs between $1,125 and $5,150 with most homeowners spending $1,870 for a 500-gallon tank, and $4,400 to install a 1,000-gallon tank in metropolitan areas. Tanks from 250 gallons upward can be installed underground, with 500- to 1,000-gallon tanks being the most common.

Excavation and Trenching Labor Cost

Aside from the cost of the actual tank, there is the fee for the licensed installer, the installation package, and the excavating team. Working hours for the excavation team are extra at about $500–$600, starting with $95 for the first 30 min +75/man/hour.

Reasons To Install Your Propane Tank Underground

• You are in a geographical location with extreme weather, especially deep freezing. When underground, the tank is surrounded by earth, thus helping to keep the temperature steady.
• Underground propane tanks are safer when it comes to potential damages like propane leaks since a gas leak would be more contained by the soil. Propane is harmless to your water and the environment, but it is combustible.
• You’d rather have it out of sight. An underground tank can have landscaping surrounding the cap where the gauges and other controls are. Sometimes, an underground tank can raise the value of the property.

Above-Ground Propane Tank Price

Above-ground propane tank prices range from $400 for a 100-gallon tank, $1,200 for a 250-gallon tank, $1,500 to install a 500-gallon tank, and approximately $3,100 for a 1,000-gallon tank. It’s better to install an above-ground propane tank if your property is in an area with frequent flooding. There can be a problem with the tank “floating, causing the tank to shift or float if the water rises above the propane level in your tank. ^[3]

Above-ground propane tank prices revolve mainly around the size of the tank purchased, the amount of gas it holds, and whether it’s new, empty, used, or full. Prices can range from $700–$2,500.

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Propane Prices Per Gallon

Propane prices range from $2.00 to $2.50 per gallon when looking at the past five years, but the cost often fluctuates due to supply, demand, and production levels.

Propane Cost Per Pound

While no one sells propane by the pound, you can expect to pay $0.70–$0.92 per pound. Our calculation is based on a gallon weighing ~ 4 lb.). The amount of fuel you expect to use can change the size of tank you choose. For example, you might need to use a lot more fuel in the winter.

Propane Usage Estimator

If you are wondering how much propane a furnace or other appliances use, we've compiled a usage estimator for you:

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Should I Buy Or Lease A Propane Tank?

Buying New vs. Used Propane Tanks

• Refurbished – A refurbished tank has all new valves and has been blasted and repainted.
• Used Tanks – have no safety guarantee. Smaller tanks for sale from tank exchange services often come with gas in them. Quotes have read “75% full” and “both 5 Gal tanks half full” and “$15 for the tank, ‘cheaper than a tank deposit!’” All used tanks must be certified before being put to work.

A company in three states, THRIFTY PROPANE, offers a comparison of new and refurbished propane tanks for sale.

Purchasing Full vs. Empty

Larger tanks are sold empty by law. The grill-size tanks, often called cylinders, would usually be bought full.

Local Propane Tank Prices and Companies

For your local propane companies, we encourage looking at local Better Business Bureau reviews. Online quotes are often unsubstantiated, which is why you must call to get pricing.

Also, the National Propane Gas Association will provide referrals to many smaller companies that sell and install propane tanks by zip code.

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What You Need To Known About Propane Tanks

1. Capacity – For those just learning about propane, a useful tidbit is that any tank will only be filled to 80% capacity. Thus a 100-gal tank will be full at only 80 gallons. This safety precaution is to leave room for the expansion of the gas with warmth. New tanks come with an overfill protection device.
2. Propane tank recertification – “The National Fire Protection Association (NFPA) and the DOT require periodic recertification of stationary propane cylinders by qualified service technicians” ^[6] and costs approximately $5–$60. Recertification must be done on any cylinder under 100 lb. twelve years from the date of manufacture, and every five years following.
3. Local building codes – Underground tanks must be installed at least 10 feet away from any traffic, building, or property line.
4. Longer engine life – According to the US Dept. of Energy, “The potential for lower maintenance costs is one reason behind propane's popularity for use in light- and medium-duty vehicles, such as trucks and taxis, and for heavy-duty vehicles, such as school buses. Propane's low carbon and low oil contamination characteristics may result in longer engine life.”
5. Cold start issues – “Propane performs well in cold weather climates because the fuel's mixture (propane and air) is completely gaseous. This factor allows propane-powered vehicles to avoid many cold-start issues associated with using liquid fuels.”
6. Alternative fuel – Propane is an alternative vehicle fuel.

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Frequently Asked Questions

How does Blue Rhino vs. AmeriGas tank prices compare?

Blue Rhino is likely to be found at Home Depot while AmeriGas can be located at Lowe’s and Walmart, and both companies offer tanks at the same prices. AmeriGas also has the bulk of the propane delivery business, and their prices vary based on the individual account.

Is it better to purchase or rent a tank?

Buying a propane tank for the home gives one the freedom to purchase propane from the supplier of choice. It also leaves one responsible for all maintenance and certifications. Renting relieves one of the risks of breakdowns while being restricted to a single supplier as a captive audience. If you plan on using the tank long term, buying and doing yearly maintenance is a cheaper option because you get to take it with you if you move. Without the maintenance, leaks can cause you to lose $$ on lost propane.

How to tell how much propane your tank has left

Your home propane storage tank will have a gauge showing the percentage your tank is full. With the smaller, portable tanks used for grilling, RVs, and even smokers, you can weigh the tank, deducting the empty weight of the tank. A simpler method is to take a small bucket of warm water and pour it over the side of the tank. Run your hand from top to bottom, and you will feel where the coldness of the propane starts—that will show you how much is left.

What is the price of actual propane/cost to refill your tank?

The actual price of propane is tied to crude oil prices and does not fluctuate much. Many U-Haul locations and pay-at-the-pump options price it at $2.39–$3.71 per gallon. A tractor supply company may have the lowest price, with no differentiation for use. Commonly, they will only fill up to 100 gallons.

Should I exchange or refill my old tank?

One consideration for refilling would be the potential savings, but saving up to $2 per gallon may be offset by the inconvenience of finding an open filling station. The advantage of exchanging the tank is getting one which is certified and properly serviced.

How much does propane tank recertification cost?

Propane tank recertification costs approximately $5­60. Recertification must be done on any cylinder under 100 lb. twelve years from the date of manufacture, and every five years following.

What is the difference between propane and liquid propane?

Liquid propane is synonymous with propane. When one sees LPG, it could be propane or not. While propane is a liquified petroleum gas (hydrocarbon gas liquified through pressurization), so are butane, isobutane, and mixtures of them.

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