How Much Does A Propane Tank Installation Cost In 2024?
By Juan Jimenez , Corinne Tynan
Contributor, Editor

Fact Checked
Lexie Pelchen Editor
Updated: May 20, 2024, 12:37am
We earn a commission from partner links on Forbes Home. Commissions do not
 affect our editors' opinions or evaluations.
How Much Does A Propane Tank Installation Cost In 2024?
Getty
Table of Contents

    Average Cost for Propane Tank Installation
    Key Takeaways
    Above-Ground Propane Tank Cost
    Below-Ground Propane Tank Cost
    Factors That Affect Propane Tank Installation Costs
    Propane Installation Cost by Tank Size
    Propane Tank Brand Prices
    Additional Costs Associated With Propane Tank Installation
    Propane Tank Refill Costs
    DIY vs. Hiring a Professional Propane Tank Installer
    How to Save Money on Underground Propane Tank Installation
    How to Save Money on Above-Ground Propane Tank Installation
    Should I Buy or Lease a Propane Tank?
    Frequently Asked Questions (FAQs) 

Show more

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 it
 costs 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 an 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

Key Takeaways

    Installing an above-ground 250-gallon tank costs about $400 to $1,000
 on average.
    Underground tanks are more expensive to install and can cost between
 $1,500 to $5,000.
    Plumbers that work with gas may charge between $50 to $260 per hour.

Above-Ground Propane Tank Cost

Above-ground tanks are generally smaller and easier to install, which
 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. These tanks are usually about 8 feet long and
 30 inches in diameter. Therefore, they’re not very appealing and take up
 space in your yard. Plus, above-ground tanks can be more prone to theft.
Below-Ground Propane Tank Cost

Underground tanks are more expensive to install, ranging anywhere from
 $1,500 to $5,000. Pros dig a large, deep hole to accommodate the tank.
 This process typically involves renting heavy equipment and more labor
 than above-ground installation. Although it’s more expensive,
 underground tanks have two significant benefits. First, 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.
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.
Advertisement

Compare Quotes From Top-rated Gas Line Install & Repair Pros

Free, No-commitment Estimates
Find an Installer
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.

Propane Installation Cost by Tank Size

Typically, the main factor affecting propane installation costs is the tank size: the bigger the tank, the more expensive it will be to install. So if you’re deciding whether or not it’s worth installing a system for your home, start by figuring out how much propane you’ll use per year. 

For instance, small tanks ranging from 100- to 250-gallons can cost anywhere from $300 to $1,000. Medium tanks ranging from 330- to 500-gallons can cost anywhere from $450 to $3,000. Large tanks ranging from 1,000-gallons and above can cost anywhere from $1,500 to $5,000.

However, it’s best to contact local propane suppliers, installation contractors or propane service companies to get an accurate and up-to-date quote based on your unique requirements and location. They can provide a more precise estimate after considering any unique factors that may affect the installation cost. 
Propane Tank Brand Prices

Another factor to consider when selecting the right propane tank for your home is the propane tank brand. Therefore, researching and receiving multiple quotes from each company is vital when deciding on the ideal brand. 
AmeriGas Propane

AmeriGas is one of the largest propane suppliers in the United States. The company typically offers propane gas to residential, commercial and industrial customers. It’s recommended to visit AmeriGas propane gas’ official website or contact its customer service directly to receive accurate and up-to-date pricing information. These sources can provide the most current pricing details based on location and propane needs.
Blue Rhino Propane

Blue Rhino Propane is a well-known brand specializing in propane tanks at various retail locations in the United States. Blue Rhino Propane tanks typically cost between $15 and $20, depending on the size. The company also offers pre-filled propane tanks that customers can exchange for empty tanks. 
Flame King

If you’re looking for propane tanks for outdoor activities, camping and RVs, Flame King is the place to go. Its prices vary based on size and features, but you can expect costs to be around $10 to $20 for a small portable cylinder and $30 to $70 for a larger tank.
Additional Costs Associated With Propane Tank Installation
Labor

Plumbers who can work with gas may charge anywhere from $50 to $260 per hour. Location, experience and certification affect their overall rate. For example, an experienced gas plumber in California is typically more expensive than a new plumber in Virginia.

How many hours this job takes depends on the size of the tank and whether pros are installing it 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.
Advertisement

Fix, Maintain Or Clean Your Tank Effortlessly

With regular maintenance and cleaning, ensure your sewage tank is in proper working order. Find a top-rated septic system cleaning services with Angi.
Find A Contractor
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.
Annual Inspection

An annual propane tank inspection is essential to ensure safety and compliance with regulations. The process typically involves a thorough visual examination for damage or corrosion, leak testing of valves and connections, pressure testing to confirm tank integrity and necessary maintenance or repairs. This annual fee is typically around $50 to $75.
Tank Filling

If you want to fill your propane tank, you might wonder how much it will cost. The propane cost depends on multiple factors, including the size of your tank and current market prices for propane. Therefore, the average cost of propane typically ranges from $2 to $3 per gallon.
Gas Lines

The cost of installing gas lines will depend on the distance and complexity of the installation. Longer distances or more intricate installations may require additional materials and labor. The cost can range from $250 to $850. 
Location

How much a propane tank costs can vary based on different factors, and one of the significant factors is the installation location. For example, buying a propane tank for a grill is more affordable than installing an above-ground propane tank. An underground propane tank is undoubtedly the most expensive of the three options. 
Propane Tank Refill Costs

When planning to fill a propane tank, it’s important to consider all the factors that can affect the cost. The size of your tank is one key factor, as larger tanks typically require more propane and come with higher costs. Additionally, market prices for propane are crucial in determining the overall cost of filling a tank. On average, propane costs range from $2 to $3 per gallon, providing a general reference point.

However, prices can vary based on your location and the propane supplier you choose. To obtain current and accurate pricing information for your area or region, contact local propane suppliers directly to obtain real-time data for your location.
DIY vs. Hiring a Professional Propane Tank Installer

When installing a propane tank, you may wonder what the best approach is. A DIY installation may be feasible if you have prior experience working with propane systems or have the knowledge, expertise and confidence to safely handle propane installations. However, if you lack experience or are uncertain about the installation process, hiring a professional is strongly recommended.

Since propane tanks can be dangerous if not installed correctly, hiring an experienced professional is important to ensure your tank is installed safely and with all the required precautions. Professionals are well-versed in safety protocols and have a deep understanding of the potential hazards involved. They can identify and address safety risks that an inexperienced individual may overlook and possess the expertise to ensure a proper and secure installation, minimizing the risk of accidents or errors.
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 Above-Ground 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.
Should I Buy or Lease 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.
Advertisement

Compare Quotes From Top-rated Local Contractors

Free, No-commitment Estimates
Find A General Contractor

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?
What are the major benefits of having a propane tank?
How much does it cost to fill a 500-gallon propane tank?
How long does a 500-gallon propane tank last for a house?
What is cheaper, propane or electric?