How Much Does a Propane Tank Cost?

Using propane to fuel your appliances and heat your home offers various benefits. When compared to natural gas and heating oil, propane offers greater energy efficiency. This efficiency offsets the fact that propane typically costs more per unit than natural gas.

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While specific pricing can vary, the average cost of residential propane is around $2.51 (CAD 3.47) per gallon, according to the U.S. Energy Information Administration. Various factors beyond the fuel's per-gallon price affect propane tank costs, though.

How Much Do Different-Sized Propane Tanks Cost to Install? (100, 250, 500 Gallons)

According to data from This Old House, homeowners may spend anywhere from $600 to $2,500 (CAD 830 to CAD 3,459) to have a propane tank installed. The exact cost depends on your location, local labor rates, the tank capacity you choose and where it's installed.

Propane tanks with capacities less than 500 gallons are only installed above ground. Here's a look at the estimated costs to install common sizes of aboveground tanks:

100-Gallon Propane Tank Installation Costs

The cost for a 100-gallon propane tank installation runs between $600 and $800 (CAD 830 and CAD 1,107).

250-Gallon Propane Tank Installation Costs

Installing a 250-gallon propane tank costs between $800 and $1,200 (CAD 1,107 and CAD 1,660).

Large 500-Gallon Propane Tank Installation Costs

The cost range for having a 500-gallon propane tank installed is $1,000 to $2,000 (CAD 1,383 to CAD 2,767).

You also need to factor in the cost of running gas lines from the tank to your home heating system and other appliances. Depending on the length needed, this could range from $250 to $800.

How Much Does It Cost to Install an Underground Propane Tank?

Larger-capacity tanks may be installed underground. The average cost to install a 500-gallon tank is between $1,500 and $2,500 (CAD 2,075 and CAD 3,459). For a 1,000-gallon propane tank, underground installation costs $2,000 to $2,500 (CAD 2,767 to CAD 3,459).

It's important to keep in mind that the total cost to install an underground propane tank can vary among distributors. Other factors affecting the overall cost include soil conditions, labor charges and local regulations. You may also need to have underground gas lines installed to connect the tank to your indoor appliances and obtain installation permits, which can add to the final cost.

How Long Will Each of Those Sizes Last for a House?

When the fuel is used to heat the home and household hot water and run various appliances, a 100-gallon tank of propane might last a few weeks. A 250-gallon tank may last about a month, while a 500-gallon tank might last for several months.

It's important to note that these timeframes are just estimates, and the exact length of time a full propane tank lasts in a home can vary. Factors such as the amount of usage, the number of people in the household, the size of the home and how well it's insulated can all affect how long a tank of propane lasts.

How Much Does Propane Cost per Gallon for a Refill?

The exact per-gallon costs for propane tank refills is determined by variables such as your geographic location and the retailer you choose. The most recent EIA data for residential propane costs shows a range of $1.99 to $3.61 (CAD 2.75 to CAD 4.99) per gallon.

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How Much Does It Cost to Fill or Refill Each of Those Sizes for a House?

Propane tank refill costs can vary significantly due to crude oil prices, market conditions, seasonal demand fluctuations and your specific region. Here are some refill estimates based on the latest EIA average cost of $2.51 (CAD 3.47) per gallon:

100-Gallon Propane Tank

It should be noted that the size of the tank doesn't necessarily indicate the full amount of propane it may contain. Safety rules dictate tanks can be only refilled to 80% capacity to allow for gas expansion. A 100-gallon tank takes 80 gallons at a cost of $201 (CAD 278).

250-Gallon Propane Tank

Following the same rule, the maximum refill amount for this size tank is 200 gallons. 200 gallons of propane cost $502 (CAD 694).

500-Gallon Propane Tank

This size can hold 400 gallons, at a cost of $1,004 (CAD 1,389).

Should You Rent or Buy a Propane Tank?

If you're trying to decide between renting and purchasing a propane tank, it's important to consider the pros and cons of each option.

Renting a tank means your supplier should handle maintenance and repairs, and renting costs less than purchasing a tank. Opting for renting may also reduce your liability, as the supplier generally takes care of insurance and handles all safety and compliance matters.

Purchasing a propane tank also comes with its own set of benefits. Owning your tank outright allows you more flexibility in choosing your propane supplier, and you'll also avoid rental fees. Some propane tank leasing agreements include additional fees that owners don't have to worry about.

How Much Does It Cost to Rent a Propane Tank?

While rental fees can vary between suppliers, yearly rental costs are typically between $150 and $180 (CAD 208 and CAD 248). If you're interested in renting a tank, the first thing to do is contact a local propane supplier. They'll conduct an assessment of your home or business to determine the right propane setup for your property size and heating needs.

Next, you'll be provided with a lease agreement, and you may be required to pass a credit check. Once approved, your supplier will install your propane tank. They'll also deliver your propane refills and perform any necessary maintenance and repairs.