If you like cooking over a gas range, it can be frustrating to learn that there is no natural gas in your area. Sometimes it may be available but cost several thousands of dollars to tap into the natural line. Fortunately, propane is an excellent alternative. Propane provides clean fuel for fireplaces, dryers, water heaters, furnaces and cooking appliances. The national average cost for above-ground 250-gallon tank costs about $400 to $1,000 to install. Plus, in some cases, you might pay nothing to have a propane tank installed.
| Average Cost for Propane Tank Installation | ||
|---|---|---|
| Average Cost | $700 - $2,400 | |
| Highest Cost | $5,400 | |
| Lowest Cost | $275 | |
Factors That Affect Propane Tank Installation Costs
Size of the Propane Tank
One of the most significant variables in propane tank installation cost is the tank size. Residential propane tanks are typically between 20 and 1,000 gallons. However, 20-gallon tanks are only sufficient for an outdoor grill or a small appliance such as a dryer. The most common propane tank sizes are 120, 250, 500 and 1,000 gallons. A 120-gallon tank is enough for one to two small appliances, such as a fireplace and an oven. A 250-gallon tank is sufficient for water heaters and auxiliary heating.
If you have multiple appliances running on propane, such as a furnace, water heater and stove, you’ll need a 500 or 1,000-gallon tank.
A small 100-gallon, above-ground tank costs $340 to $510 to install, whereas a 500-gallon tank costs about $1,650 to $1,850. Likewise, a 250-gallon tank comes in right in the middle at about $1,200.
It’s important to note that propane tanks typically only hold 80% of their rated capacity. For example, a 100-gallon tank holds 80 gallons of propane.
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Propane Tank Distance From House
In addition to size, the tank’s distance from the house is a significant factor in the installation cost. Most areas follow the NFPA (National Fire Protection Association) requirements for propane tank distances. For example, a tank of 125 gallons or less can be up against the house. However, an above-ground tank of 125 to 500 gallons must be at least 10 feet from the house and any combustion sources.
The farther from the house the tank is, the more expensive the installation. Tanks farther away require trenching the ground for the pipes, and the longer pipes add to the cost. You can expect to pay about $10 per foot of trenching plus another $2 per foot of pipe.
Tank Location
Above-Ground Tanks
Above-ground tanks are generally smaller and easier to install. This translates to cheaper installation costs. For example,a 500-gallon above-ground tank costs $1,400 to $1,700, whereas an underground installation costs $1,500 to $3,000.
The benefits of an above-ground tank are that they are cheaper to install, easily accessed for filling and maintenance, and easier and cheaper to repair or replace. However, the biggest drawback to an above-ground tank is that it’s an eyesore. They’re usually about eight feet long and thirty inches in diameter. Therefore, they’re not very appealing and take up space in your yard. Plus, above-ground tanks are more prone to theft.
Underground Tanks
Underground tanks are more expensive to install. A large, deep hole is dug to accommodate the tank. This typically involves renting heavy equipment and more labor than above-ground installation. Although it’s more expensive, underground tanks have two significant benefits. First, underground tanks are protected from the elements. Extreme temperatures and weather events can harm above-ground tanks, but underground tanks are protected. Second, propane leaks are less dangerous when the tank is underground. Although the grass might die, there is little chance of fire.
The tank and propane are the same prices, whether above or below ground. The additional cost for underground tanks comes from the added labor and materials.
Additional Costs Associated With Propane Tank Installation
Labor
Plumbers may charge anywhere from $100 to $360 per hour. Location, experience and certification affect their overall rate. For example, an experienced plumber in California is typically more expensive than a new plumber in Virginia. How many hours it takes depends on the size of the tank and whether it’s above or below ground. A 120-gallon tank can be installed in an hour by two technicians. However, a 500-gallon underground tank can take a small crew a whole workday to install.
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Regulator
Propane gas goes through a regulator to reduce the pressure from the tank to the appropriate pressure for the appliances. Most regulators are about $50 to $90 plus installation costs.
Permits
Most areas require permits for new propane tank installations. The permit cost varies depending on where you live, but expect to pay $25 to $200.
Support
Above-ground tanks are required to be placed on concrete or other non-combustible pads. Most companies charge around $100 to $200 for this pad for a small vertical tank and $300 to $500 for a larger tank.
How to Save Money on Underground Propane Tank Installation
Underground propane tank installation is best left to professionals. However, the best way to save money is to get multiple quotes. Contractor pricing varies significantly. Some companies may specialize in underground tank installation, while others only do it occasionally. Likewise, some companies may own a backhoe or excavator, while others need to rent them. Many factors affect contractor pricing, and the best way to find the most cost-effective installation is to shop around.
How to Save Money on Aboveground Propane Tank Installation
Fortunately, some propane providers lease propane tanks for a small monthly or yearly fee of about $50 to $250 a year. Some companies even rent the tank for free if you sign a contract. In addition, most companies will install and maintain the tanks at no additional cost.
Leasing vs. Buying a Propane Tank
Most homeowners using propane lease their tanks. However, you may wonder if buying your own tank is beneficial.
There are two significant benefits to owning your tank. The first is that you can shop around for cheaper propane. Only the company that leased the tank will fill it if you lease a tank. This is similar to only being able to refill your car’s gas from one company. Propane prices constantly fluctuate by area, season, and company. Owning a tank means you can pick the company with the lowest current price.
Additionally, you avoid minimum use and tank rental fees by owning a tank. Many companies require a minimum monthly, quarterly or annually. If you don’t meet the minimum, you will be charged for it anyway. This isn’t an issue for most homeowners but could be problematic depending on your circumstances.
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However, owning a tank means steeper upfront costs. Plus, you’ll be responsible for all the repairs and maintenance. The leasing company handles all repairs and maintenance when you lease a tank. Another drawback is that if you move, you’ll need to leave the tank or pay to relocate it. Relocating a tank can wipe out any savings from owning your tank.
Propane tanks last for 30 years or more, so it’s possible that you could save money by buying a propane tank. However, if you won’t be at your current house for long, you probably won’t see any actual savings.
To arrive at the average costs in this article, editorial team members surveyed a range of providers on national and local levels. All averaged figures were correct at the time of publication and may be subject to change.
Frequently Asked Questions (FAQs)
Who installs propane tanks?
Propane suppliers and plumbers are typically the professionals that install propane tanks.
What are the major benefits of having a propane tank?
Propane is great for areas that do not have natural gas. You can run fireplaces, grills, dryers, ovens, ranges, furnaces, and water heaters off propane. Since some areas don’t have natural gas, propane is an excellent alternative. Plus, running a natural gas line for one appliance is not cost-effective. If your area does have gas, but you want gas for a kitchen range, then propane is a great alternative.
How much does it cost to fill a 500-gallon propane tank?
First, tanks only hold about 80% of the rated capacity. So a 500-gallon tank only holds 400 gallons. Propane is like gas—prices vary by location and change daily. The current national average of propane is $2.337 per gallon, meaning it costs about $940 to fill up a 500-gallon tank.
How long does a 500-gallon propane tank last for a house?
Your area’s climate and your number of appliances affect how long your propane lasts. For example, 500 gallons in South Carolina generally lasts longer than 500 gallons in Maine, assuming the heating systems use propane. Asking your neighbors is your best resource for determining how much propane you need.
What is cheaper, propane or electric?
For the most part, propane is cheaper than electricity. However, prices vary by locality and season.
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FAQs
How long does a 500 gallon propane tank last for a house? ›
A 500-gallon tank holds 400 gallons of propane and can last several months, ranging between 2 to 14 months. On average, homeowners can expect that the tank will last around 5 months with regular use of appliances.
How much does it cost to install a propane tank on a gas stove? ›The average price for installing a propane tank is $2,750, though prices can vary from as little as $275 to as much as $5,150. Again, this large price range comes down to whether you choose an above-ground or underground installation.
Is owning your own propane tank worth it? ›Owning your propane tank can save you money in many ways. Reduced price for propane: Many propane suppliers will give you a better price on propane if you own your tank. No monthly or yearly rental payments: You'll have the upfront cost of the tank and installation, but you won't have monthly or yearly rental payments.
Which is cheaper propane or electric? ›Propane is cheaper than electric.
According to the U.S. Department of Energy, heating a home in the U.S. with a propane heating system costs far less than heating with an electric system.
A small 100-gallon, above-ground tank costs $340 to $510 to install, whereas a 500-gallon tank costs about $1,650 to $1,850. Likewise, a 250-gallon tank comes in right in the middle at about $1,200. It's important to note that propane tanks typically only hold 80% of their rated capacity.
What is the future for propane in 2023? ›Prices peaked at $1.491 per gallon in late 2021 before dropping to about $1.123 per gallon in early 2022. The propane price forecast for 2023 sees prices increasing by approximately 5%, with the average household spending $1,668 on propane.
What is the best month to buy propane? ›The cheapest time to buy propane lies between late September to early October. The reasons that propane becomes inexpensive during this time are: Stable weather conditions. Low demand.
Which is cheaper natural gas or propane? ›Propane is more expensive than natural gas but natural gas burns much faster than propane. In fact, it burns at a rate of two to one. This means that to heat two spaces of the same size, you'll use twice as much natural gas than propane.
How far does a 250 gallon propane tank need to be from house? ›The fire code requires that this size propane tank be set ten feet from a building and a property line. A 250-gallon propane tank holds 200 gallons of liquid propane.
What size propane tank do I need for a 2000 square foot house? ›1,000 Gallon Tank
If you use a lot of propane throughout the year and have a larger square footage home between 2,000 to 4,500 square feet, this tank would be a good choice.
How big of a propane tank do I need for a whole house? ›
Typically, a home needs to be at least 2,500 square feet, and use propane for multiple appliances for a 500-gallon tank to be the best choice. You can also choose above-ground or below-ground tank installation for 500-gallon tanks.
What are 3 disadvantages of propane? ›- Propane produces fewer BTUs per gallon than oil heating.
- Propane-burning equipment often costs more to purchase than heating oil-based systems.
- Propane is combustible in air, so precautions are needed to operate the equipment safely.
We're seeing propane costs going up for residential propane users in 2022 and 2023, with an estimated 5% increase expected in the next year.
Is it cheaper to buy or lease propane tank? ›Renting generally costs less up front than owning a tank.
With initial purchase and installation costs at the lowest starting fees, it could take about 17 years for a propane tank purchase to “pay for itself” compared with renting.
Because propane is a more efficient fuel, it costs less to operate. Propane appliances also generally have a longer lifespan than their electric counterparts, saving you both money and peace of mind in the long run.
What is the cheapest way to heat a home? ›As a general rule, heating your home with a natural gas furnace is the cheapest way to keep warm through the winter months.
How much propane does it take to heat a 2000 square foot house? ›Propane Usage Based on Household Square Footage
1,000 square feet will use an average of 440 gallons on an annual basis. 1,500 square feet will use an average of 670 gallons each year. 2,000 square feet will consume up to 900 gallons on an annual basis.
However, within the next few years, 100 million gallons of renewable propane will likely be available with a total potential of 300 million gallons in the next decade. In fact, by 2050, renewable propane could meet half the world's demand for non-chemical propane, according to the World LP Gas Association.
How much does it cost to fill a 250 gallon propane tank? ›| Propane Tank Size (Gallons): | Refill Cost (At $2.00/Gallon): | Refill Cost (At $2.86/Gallon): |
|---|---|---|
| 250 Gallon | $400.00 | $572.00 |
| 500 Gallon | $800.00 | $1,144.00 |
| 750 Gallon | $1,200.00 | $1,716.00 |
| 1000 Gallon | $1,600.00 | $2,288.00 |
| Size | Cost |
|---|---|
| 20 lbs. | $40 |
| 100 Gallons | $500 |
| 500 Gallons | $1,500 |
| 1,000 Gallons | $2,500 |
How much will propane cost for 2023? ›
Price of Propane
Since then, it has risen briefly and fallen again. Prices peaked at $1.491 per gallon in late 2021 before dropping to about $1.123 per gallon in early 2022. The propane price forecast for 2023 sees prices increasing by approximately 5%, with the average household spending $1,668 on propane.
US Residential Propane Price is at a current level of 2.698, down from 2.702 last week and down from 2.84 one year ago. This is a change of -0.15% from last week and -5.00% from one year ago.
What will gas prices be like in 2023? ›Prices could see even bigger jumps later this year. The average price for a gallon of gas could be $3.79 to $4.19 in June, GasBuddy said in its annual price outlook for 2023. The current average is close to what Gasbuddy expects to be the yearly average of $3.49 a gallon.
How many years is a propane good for? ›How long are propane tanks good for? In the United States, a bottle is qualified for 12 years from the date of manufacture, while in Canada it's good for 10 years. A recertified tank is good for 5, 7, or 12 years, depending on the method and type of recertification.
How do you keep propane prices down? ›Turn down the thermostat 10 degrees when you go to work, and again when you go to bed -- a total of 16 hours a day - - and you can save about 14% on your heating bill. Keep a close eye on your tank gauge. Don't let your tank run out of propane which may add special delivery charges.
When should I retire my propane tank? ›You may not realize it but your propane tank has an expiration date on it. It is between 10 and 12 years from the date of manufacture as seen on the handle of the tank – near where you find the tare weight.
What burns hotter gas or propane? ›Propane also burns hotter than natural gas (2500 BTU's vs 1000 BTUs), which some grilling purists believe is one of the most important factors to keep in mind. Propane is considered to be environmentally-friendly because there's no lead, has low GHG emissions and produces water vapor and carbon dioxide.
Is propane better than gas for generators? ›While gas-powered generators may be more cost-effective up front, propane-powered generators can save you money in the long run. You probably won't be using your generator every day, which means you'll be storing it for the majority of the time. When it comes to shelf life, propane is a far superior fuel supply.
Is propane as unhealthy as natural gas? ›Propane is non-toxic and will not harm water or soil. Natural gas is a clean-burning greenhouse gas, meaning it emits lower levels of harmful emissions like carbon monoxide, carbon dioxide, and nitrous oxides.
How close to house can propane tank be? ›For a 500 to 1,000 USWG horizontal-style tank — the clearance must be a minimum of 10 feet away from your home, any building or structure, the property line, windows and doors, and any sources of ignition and air intakes, including heat pumps and air conditioners.
Is there a maximum distance a propane tank can be from the house? ›
Generally, the majority of tanks fall under a ten foot rule with regard to buildings and houses. The standards and rules differ when locations such as playgrounds, parking lots, railroad tracks or other flammable materials are taken into consideration.
How deep should a propane line be buried? ›Propane Line Depth Requirements
Depths range from 12 to 18 inches underground, depending on vehicular traffic. The reason for this depth requirement is simple - the earth, dirt, sand or whatever is covering the line needs to adequately protect the underground gas line from damage.
A standard 500-gallon tank holds 400 gallons of propane and is generally installed for central heating and small commercial applications. Each tank is 9' 11” long and 37½” in diameter. The recommended minimum pouring pad size: 5 x 12 feet, 6” deep.
Should I get a 500 or 1000 gallon propane tank? ›Ideally, the 500-gallon tank is best for homes running multiple appliances and are under 3,500 square feet. If your home is larger than 3,500 square feet, you may want to upgrade to the 1,000-gallon or even 2,000-gallon tank.
What size propane tank do I need for a 1500 square foot house? ›A 500 gallon propane tank is an efficient option for larger homes (1,500 square feet or more) that use propane for several appliances.
Does propane go bad? ›Does propane expire? Another way you get peace of mind with propane delivery from Bottini Fuel is that propane doesn't have a shelf life or an expiration date. That's because propane doesn't go bad! Other fuel sources can degrade over time, like kerosene, diesel, heating oil and gasoline.
How many gallons of propane should a house use in a month? ›...
Propane Gas Water Heater.
| Number of people in household | Monthly Propane Usage |
|---|---|
| 4 people | 25 gallons per month |
| 5 + people | 30+ gallons per month |
If you're looking to heat your entire home, or multiple appliances, then a 500 gallon tank best fits your needs. These tanks are perfect for heating a smaller home, reducing the number of fill-ups required throughout the year.
What is the cheapest fuel to heat a house? ›Natural gas tends to be the most affordable of these options, with the federal Energy Information Administration (EIA) reporting that the average seasonal cost of natural gas heating is currently about 70 percent less per household than for households with oil heat.
What are bad things about propane? ›Why Is Propane Harmful? Propane is an asphyxiant, meaning very high concentrations of the gas can cause suffocation. Exposure to high concentrations can also cause cardiac arrest, unconsciousness, or seizures. Sustained contact with the skin can cause frostbite.
Why am I using so much propane to heat my house? ›
If you heat your home with propane and it's cold outside, you are going to use more propane. The same goes for heating with natural gas or electricity. The United States encompasses such a large geographic area that the climate regions of the country range from frigid to tropical.
How much does it cost to fill a 500 gallon propane tank? ›So a 500-gallon tank only holds 400 gallons. Propane is like gas—prices vary by location and change daily. The current national average of propane is $2.337 per gallon, meaning it costs about $940 to fill up a 500-gallon tank.
Is propane still cheaper than electricity? ›Propane is cheaper than electric.
According to the U.S. Department of Energy, heating a home in the U.S. with a propane heating system costs far less than heating with an electric system.
The cheapest time to buy propane lies between late September to early October. The reasons that propane becomes inexpensive during this time are: Stable weather conditions. Low demand.
How many days will a 500-gallon propane tank last? ›A 500-gallon tank holds 400 gallons of propane and can last several months, ranging between 2 to 14 months. On average, homeowners can expect that the tank will last around 5 months with regular use of appliances.
What size propane tank do I need? ›Regardless, a good rule of thumb is to calculate the size of the tank based on the square footage of the home. A home that is 2,500 square feet in size will usually require a 500-gallon tank, while a home that is 5,000 square feet in size will require a 1,000-gallon tank.
How much is propane per gallon in NC? ›Basic Info. North Carolina Residential Propane Price is at a current level of 3.309, down from 3.31 last week and down from 3.451 one year ago. This is a change of -0.03% from last week and -4.11% from one year ago.
How much is propane per gallon Indiana? ›Basic Info. Indiana Residential Propane Price is at a current level of 2.601, down from 2.603 last week and down from 2.771 one year ago. This is a change of -0.08% from last week and -6.13% from one year ago.
How much is propane per gallon in Oklahoma? ›The average propane price in OK is currently $2.56 per gal.
How long will a 500 gallon propane tank run a generator? ›If you're looking for a Generac home standby generator, you'll need to decide on the propane tank size. Generally, it's good to have a tank that holds between 100 and 500 gallons of propane. A 100-gallon propane tank will last 1-2 days, while a 500-gallon tank can last 7-10 days..
Are propane prices expected to rise in 2023? ›
Price of propane—The propane supply situation in 2022–2023. The outlook here isn't great: It's expected that propane prices will continue to rise in 2023. We're seeing propane costs going up for residential propane users in 2022 and 2023, with an estimated 5% increase expected in the next year.
What month is propane usually the cheapest? ›The cheapest time to buy propane lies between late September to early October. The reasons that propane becomes inexpensive during this time are: Stable weather conditions. Low demand.
Is propane cheaper then natural gas? ›Propane is more expensive than natural gas but natural gas burns much faster than propane. In fact, it burns at a rate of two to one. This means that to heat two spaces of the same size, you'll use twice as much natural gas than propane.
How much does it cost to fill 1000 gallons of propane? ›| Propane Tank Size (Gallons): | Refill Cost (At $2.00/Gallon): | Refill Cost (At $2.86/Gallon): |
|---|---|---|
| 250 Gallon | $400.00 | $572.00 |
| 500 Gallon | $800.00 | $1,144.00 |
| 750 Gallon | $1,200.00 | $1,716.00 |
| 1000 Gallon | $1,600.00 | $2,288.00 |
That means that a 100-gallon propane tank will last for 7,320,000 BTU ÷ 10,000 BTU/h = 732 hours; that's 30.5 days or about 1 month.
What's the average price for propane in Oklahoma? ›| Download Series History Definitions, Sources & Notes | ||
|---|---|---|
| Show Data By: Data Series Area | 01/23/23 | 02/20/23 |
| Residential Propane | 2.598 | 2.610 |
| Wholesale Propane | 1.016 | 0.950 |
Prices for propane exchange vary by retailer, depending on the propane market, the location of the store, and other factors.
How much does it cost to fill a 500 gallon propane tank in Oklahoma? ›In short, filling a 500-gallon propane tank costs anywhere from $600 to $1,600 (for $1.50/gallon to $4.50/gallon propane prices). The cost associated with filling a 500-gallon propane tank depends only on the price of propane.
Can you run a propane generator 24 hours a day? ›Theoretically, a generator can continue running as long as it has fuel to do so. However, some fuels might be more difficult to obtain a continuous supply of during a natural disaster or other emergencies. In essence, you can keep your generator running as long as you have access to the fuel needed to run it.
Is generator propane better than gas? ›While gas-powered generators may be more cost-effective up front, propane-powered generators can save you money in the long run. You probably won't be using your generator every day, which means you'll be storing it for the majority of the time. When it comes to shelf life, propane is a far superior fuel supply.
What happens when generator runs out of propane? ›
Running out of gas may cause your generator's coils to lose their magnetism. This happens because the appliances being powered drain the residual magnetism of the generator when the load is abruptly stopped. The result is that with out a small amount of magnetism in the coils, your portable generator will not restart.