How Much Does It Cost to Install a Propane Tank?

Average range: $1,500 - $3,750
Low
$700
Average Cost
$2,500
High
$5,000
(500-gallon tank, installed underground 10 feet from the house)

Get free estimates from plumbers near you
Here's what happens next

How Much Does It Cost to Install a Propane Tank?

Average range: $1,500 - $3,750
Low
$700
Average Cost
$2,500
High
$5,000
(500-gallon tank, installed underground 10 feet from the house)

Get free estimates from plumbers near you
Here's what happens next
Step 1
Answer a few questions
Tell us what you are looking for.
Step 2
Find out how much your project will cost
The contractors will offer competitive free quotes for your job.
Step 3
Compare the quotes and hire
Compare the estimates and hire the contractor who best fits your needs.

If you live in an area where natural gas is not piped but want to use gas to heat your home or run appliances, a good alternative is liquid propane. This is a gas alternative stored on your property and periodically refilled by the propane supplier.

There are many ways to store propane. Some companies offer tanks free of charge if you use a certain amount of gas. Others lease the tanks to you for a fee, which includes installation, and some require you to pay for the tanks and installation. Propane tanks come in many sizes and types and can be installed underground and above-ground. The average cost to install a propane tank is between $1,500 and $3,750. The average homeowner pays $2,500 for a 500-gallon tank installed underground 10 feet from the house. This project’s low cost is $700 for two 120-gallon tanks installed beside the house. The high cost is $5,000 for a 1,000-gallon tank installed 20 feet from the home, underground.

Cost to Install a Propane Tank

Residential Propane Tank Installation Cost
National average cost$2,500
Average range$1,500-$3,750
Minimum cost$700
Maximum cost$5,000


Updated: What's new?

Propane Tank Installation Cost by Project Range

Low
$700
Two 120-gallon tanks, installed directly beside the house
Average Cost
$2,500
500-gallon tank, installed underground 10 feet from the house
High
$5,000
1,000-gallon tank, installed underground 20 feet from the house

Propane Tank Cost by Location

The tank you get depends on its size. For example, if you need less than 500 gallons, two small tanks are usually recommended and installed above ground beside your home.

However, you likely need a cylinder tank measuring roughly 8 feet long by 4 feet high if you need 500 gallons or more. This can also be installed above or below ground. Both have advantages to consider based on your region and landscaping.


Cost to Install an Above-Ground and an Undergroung Propane Tank

Cost to Install an Above-Ground and an Undergroung Propane Tank


LocationAverage Costs (Installed)
Above-Ground$300 - $3,000
Underground$1,500 - $5,000


Above-Ground Propane Tank Cost

Above-ground tanks cost between $300 and $3,000. Above-ground tanks are less expensive to install because they do not require trenching or digging up your yard. This is a significant savings and does not disrupt your landscaping. However, the tanks must be a certain distance from your home and should not be near your septic system. Therefore, the tank’s location may be in the middle of your yard. This is inconvenient and unsightly.

Underground Propane Tank Cost

Underground propane 1 tanks average $1,500 to $5,000. Tanks installed below ground have higher installation fees, but the tank is protected from the elements and deep freezes, which can be a concern for homes in northern climates. The tank can also be placed where only a small dome is seen to have more yard space.

The only time a propane tank should not be installed below ground is if you have a high water table or live in a flood zone. In this case, any flooding where the tank is buried could cause it to shift, which can interfere with usage.


Compare prices from local propane tank installers

New Propane Tank Cost by Capacity

Propane tanks come in several sizes. The more propane you use, the larger the recommended tank size. You can use smaller tanks, but you pay more in delivery fees long term. Your tank’s cost varies depending on the capacity and placement above and below ground.


Cost of an Above-Ground and Underground 100, 120, 250, 500, and 1,000 Gallon Propane Tank

Cost of an Above-Ground and Underground 100, 120, 250, 500, and 1,000 Gallon Propane Tank


CapacityAbove-Ground CostsUnderground Costs
100 gallons$300 - $500N/A
120 gallons$350 - $600N/A
250 gallons$450 - $1,000N/A
500 gallons$700 - $2,500$1,500 - $3,000
1,000 gallons$1,500 - $3,000$2,500 - $5,000


100-Gallon Propane Tank Cost

100-gallon propane tanks cost between $300 and $500 and are installed above ground. A 100-gallon tank can usually be installed beside your home. It is often large enough to power a single appliance, but you may need to refill the tank frequently, depending on how often you use that appliance. You can have two 100-gallon tanks installed next to each other. This doubles your capacity without taking up much space. This is likely too small if you use propane for more than one appliance.

120-Gallon Propane Tank Cost

A 120-gallon propane tank ranges from $350 to $600. This is installed above ground. Tanks this size can also be installed near the home. This is a common tank size to install for using one or more appliances, but you may need to refill it often, depending on how much you use it. It is also common to install two tanks of this size together. This cuts down on the number of refills and increases the appliances you can run at once.

Cost of a 250-Gallon Propane Tank

A 250-gallon propane tank costs between $450 and $1,000. A tank this size can usually be installed beside the home. At this size, the tank can often handle several appliances, but the rate at which you use them dictates how frequently you refill the tank. Homes that use propane heating can often use two 250-gallon tanks installed together. This can be a good alternative to having a larger 500-gallon tank in your yard. The smaller tanks can be installed close to the house instead of the larger tank, which must be installed 10 feet away.

500-Gallon Propane Tank Price

A 500-gallon propane tank averages $700 to $2,500 when installed above ground. When installed below ground, this tank costs between $1,500 and $3,000. This is the minimum tank size required to heat most homes. This is a large horizontal cylinder instead of vertical smaller tanks. It can be installed above or below ground but must be at least 10 feet from the home. For this reason, it is more commonly installed below ground because it takes up a lot of space.

1,000-Gallon Propane Tank Cost

A 1,000-gallon propane tank ranges from $1,500 to $3,000 when installed above ground. If this tank is installed below ground, it costs between $2,500 and $5,000. This tank can handle the heating and appliance needs of a large home. If your home is larger than 2,000 sq.ft. or you use propane for heating and appliances, this is the tank you need to avoid frequent refills. This tank is very large, and while it can be installed above ground, it must be placed far enough from the home that it is often in the yard space. For that reason, many people choose to have tanks this large installed below ground.

Propane Tank Cost by Use

For most people, it is not worth hooking up a propane 1 tank for a single appliance. The expense and hassle of propane delivery do not make sense for a single appliance when you could use electricity. Most people use propane for heating, appliances, or several appliances at once.

You can purchase a tank for a single appliance if desired. You can also purchase any size for any use - larger tanks can go for longer periods between refills than smaller tanks. Ultimately, the size you choose can come down to its location, how often you use that appliance, and whether you plan to hook up additional appliances to the system. It is less expensive to start with a larger tank and add appliances later than to upgrade.


Cost of a Propane Tank to Run a Stove, a Water Heater, a Hot Tub, and a Home Heating

Cost of a Propane Tank to Run a Stove, a Water Heater, a Hot Tub, and a Home Heating


UseAverage Costs
Stove$300 - $1,000
Water Heater$300 - $1,000
Hot Tub$300 - $1,000
Home Heating$700 - $5,000


Propane Tank for a Gas Stove

A propane tank that can run a gas stove costs between $300 and $1,000. At the low end, you can install a 100-gallon tank above ground beside your home. You could also pay for a 250-gallon tank if you want to go longer between refills. If you use your stove a lot or plan on adding more appliances, it is best to invest in the larger tank. You can also choose a 500-gallon tank and run heating along with the gas stove for a smaller home. The tank requires a plumbing connection to your stove to ensure it works.

Propane Tank for a Water Heater

A propane tank that can run a water heater averages $300 to $1,000. In this case, the size largely depends on your water heater’s size, type, efficiency, and daily water consumption. If you have light water needs, a 100-gallon tank is probably sufficient. If you do not want to refill as often or have a busy household with higher water needs, you may need a 250-gallon tank. If you plan on using the propane for anything in addition to the hot water heater, you may want to upgrade to a 500-gallon tank. A 500-gallon tank is also a good idea if you do not want to refill as often.

Propane Tank for a Hot Tub

The cost for a propane tank for a hot tub is between $300 and $1,000. The costs depend on your hot tub’s size and how often you use it. Small tubs that get used infrequently can use a 100-gallon tank easily. Upgrade to a 250-gallon tank if you have a larger tub that gets used daily or near-daily. Consider upgrading if you do not want to refill as frequently. If you plan on using the propane for anything other than the hot tub, consider upgrading to a larger tank. A 500-gallon tank can handle your hot tub and other appliances at the same time.

Propane Tank for Home Heating

The cost of a propane tank for home heating ranges from $700 to $5,000. Your costs are dependent on several things - consider your home’s size and tank location first. If your home is under 2,000 sq.ft., you likely want a 500-gallon tank if you do not also use the propane for appliances.

If your home is larger than 2,000 sq.ft. or you use the tank for heating and appliances, upgrade to 1,000 gallons. These sizes can be installed above or below ground, with above-ground tanks costing much less than underground tanks.

Your climate and heating system efficiency also influences the tank size and cost. Colder climates and less-efficient or older furnaces need more propane. To avoid more frequent refills or risk running out, you may want to upgrade to a larger tank. If you live in a warmer climate or have a more-efficient system, you could get by with a smaller tank without issue.

Propane Tank Prices by Brand

Contact your propane supplier if you are purchasing a propane tank for a heating system or appliances. They can advise you on the tank size, location, and type. Most suppliers rent or lease you a tank at no cost or at a low rate. If you choose to purchase, your local company can direct you to a supplier for the tank.

You can purchase a small propane tank for your grill from a local retailer. You pay for the propane and a small return fee for the canister. When you return the canister, you are refunded your return fee, or you can put it toward a new canister.


Cost of AmeriGas, Costco, or Blue Rhino Propane Tank

Cost of AmeriGas, Costco, or Blue Rhino Propane Tank


BrandAverage Costs
AmeriGasNo charge with a contract
Costco$10 - $20
Blue Rhino$14 - $20


AmeriGas Propane Tank Cost

AmeriGas has no cost for tank installation when you use them as your propane provider. They lease tanks to households with a contract for regular delivery. Some AmeriGas suppliers work through a smaller local company. You contract with the local company in this case, but AmeriGas does the billing. AmeriGas costs vary by region. Contact your local office to find out more about their lease and propane delivery contracts.

Costco Propane Tank Price

The cost of a Costco propane tank is between $10 and $20. This depends on you being a Costco member. Members can participate in the exchange program. The costs are for whether you return the tank and receive an exchange or not. If you exchange the tank, your costs are lower than your initial fee. Your costs are higher if you choose not to exchange. Costco tanks can also be returned not empty if you are unsure of storage.

Blue Rhino Propane Tank Cost

The cost of a Blue Rhino propane tank ranges from $14 to $20, depending on whether you return the tank. Blue Rhino is an exchange propane service. You purchase a tank at your local supplier. Use the propane and return when empty for a new one. This service ensures your tank is always compliant. If you do not use it in a certain window and are unsure how to store it, you can exchange it for a new one.


Find top-rated propane tank installers in your area

Propane Tank Installation Cost

Most labor costs are included in the installation price. The propane company you contract with handles the associated costs, and you make a single payment. This differs only if you choose to purchase the tank and contract with the propane company to install it. In this case, installing a 500-gallon propane tank costs around $500 for an above-ground installation, and smaller tanks can usually be installed for less.

Smaller tanks are installed directly beside the house for $25 and can be hooked up for free.

Larger tanks have a more involved installation process, including a concrete pad, gas line trench, gas line hook up, which costs about $150 to $300. They also have set up and delivery costs, totaling up to $500.

Cost to Install an Underground Propane Tank

The installation cost for an underground tank starts at around $1,000. This includes tank excavation and gas line trenching. Trenching costs around $75, while excavation starts at $75 and goes up to $800, depending on how rocky your terrain is and how difficult the area is to reach and trench.

Once the trench is dug, the tank can be lowered into place and connected to the gas line - a cost of around $150. The soil is filled back in around the tank, leaving only a small dome on the top to fill the tank. You may want to have grass seed added to the area above the tank to help hide it.

If you are unsure of where the septic tank or utility lines are buried, have these marked ahead of time to avoid disturbing them.

The labor cost for excavation and trenching is between $150 and $1,000, depending on your tank’s size and location and the soil type. Most people pay roughly $600 to $800 for both, including the soil refiling and excess soil removal.

Propane Tank Refill Cost

The cost of refilling your propane tank varies depending on your area, climate, and tank size. The current national average for the cost of a gallon of propane is $2.307, but this varies by supplier, region, and season.

No propane tank is filled to the top. It needs room to expand and is filled under pressure. It is common for only 70% to 80% of a tank to be filled at once. It is also rare for the tank to be completely empty before being refilled. So, a 100-gallon propane tank may cost between $69 and $140 to refill.

A 500-gallon tank may cost between $800 and $900 to refill.

If you are concerned about pricing, contact your supplier for a schedule. They refill your tank on a regular schedule without being called. You never get below a certain level and can accurately plan your total costs.


Green Propane Tank in the Backyard of a House


Cost to Move a Propane Tank

The cost to move a propane tank ranges from $100 to $1,500, depending on if it is above or under ground and how far you are moving it. An above-ground installation for a small tank is closer to $100, with the tank unhooking, moving, and reconnecting. If it needs a new pad, the cost is closer to $200.

An underground tank costs between $1,000 and $1,500 to move, including digging up the tank, excavating a new hole, filling the old hole, moving the tank, and reconnecting it.

Propane Tank Lease Cost

In most areas, the propane company you purchase your liquid propane from rents or leases the tanks at no cost after the installation. Other companies may rent them to you for a low fee of $150 to $175 a year. This is often the most cost-effective solution, especially for smaller properties that use tanks that do not require invasive installation.

However, some homeowners choose to purchase tanks and have them installed. You can also buy previously used or new tanks. The benefit is you can switch propane providers as costs fluctuate. When you contract with a single company and lease their tanks, you are locked into their prices. If another company has cheaper propane, you first need to break your lease and contract with the new company. You can switch between companies if you own your tank, potentially saving money.

Keep in mind that many companies charge more for tank installation that is not their own.


Get free estimates from trusted propane tank installation companies

Enhancement and Improvement Costs

Propane Tank Recertification Cost

If you have a small tank for grilling or powering an RV, your tanks are considered good-for-use for a specified time. After that, they must be recertified. Some permanent homeowner-owned tanks also require recertification. The propane company handles any leased tanks. Recertification requires an inspection with a fee of around $100.

Additional Considerations and Costs

  • If a homeowner wants to purchase a used propane 1 tank to save on rental fees or be free from obligations to a single company, the tank must be tested and certified by a propane dealer. This enables you to get the best price per gallon by allowing you to switch distributors.
  • Underground tanks must be installed a minimum of 10 feet away from the road, building, or property line, and larger tanks may require 20 feet or more.
  • To get the tank in place, the company often uses mechanical support. So, the tank position must be close enough to the road to let the equipment access the area safely.
  • Installing a new tank requires a permit and inspection by the fire department in most areas.
  • If you own the tank, you must have it inspected yearly for around $50 to $75. The leasing company covers rented tanks.
  • If you have an old underground tank and want it removed, you need to pay for excavation and removal, which can cost up to $500.

FAQs

  • Do I need a permit to install a propane tank?

Yes, new installations require a permit and inspection in most areas.

  • How much does it cost to install a propane tank?

This depends on the tank type and size. A 500-gallon underground tank costs around $2,500.​

  • How far does a propane tank need to be from the house?

This depends on the tank’s size and type. Some can be installed beside the house, but others need to be 10 or 20 feet away.

  • Is it cheaper to heat with propane or electricity?

Propane is generally cheaper to heat than electricity.

  • How long will 100 gallons of propane last?

This depends on many factors, including what you are using it for and your home’s size. Expect it to last about a month to heat a home under 1,500 square feet.

  • Is it better to purchase or rent a tank?

Most companies lease their tanks for free, but owning your tank allows you to switch providers to possibly save money long term.

  • How much does propane tank recertification cost?

It is usually free when done by the leasing company. Otherwise, it costs around $100.​

  • How much does propane cost?

The cost of propane differs by company and region. The current national cost as of February 2021 is $2.307 a gallon.

Remodeling Terms Cheat Sheet

Definitions in laymen's terms, cost considerations, pictures and things you need to know.
See full cheat sheet.
glossary term picture Propane 1 Propane: A hydrocarbon gas used as a common fuel source

Cost to install a propane tank varies greatly by region (and even by zip code). To get free estimates from local contractors, please indicate yours.

Updated:
The information provided by our cost guides comes from a great variety of sources, including specialized publications and websites, cost studies, U.S. associations, reports from the U.S. government, contractors and subcontractors, material suppliers, material price services, and other vendor websites. For more information, read our Methodology and sources
Above-Ground Propane Tank Installed
plumbers near you
Get free estimates on FIXR from trusted plumbers in your area


Was this guide helpful to you?
  

Cost to install a propane tank varies greatly by region (and even by zip code). To get free estimates from local contractors, please indicate yours.

The information provided by our cost guides comes from a great variety of sources, including specialized publications and websites, cost studies, U.S. associations, reports from the U.S. government, contractors and subcontractors, material suppliers, material price services, and other vendor websites. For more information, read our Methodology and sources