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How Much Does It Cost To Install A Residential Propane Tank?

Typical Range: $275 - $5,150

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Propane Tank Installation Costs

Installing a residential propane tank costs $275 to $5,150 or $2,750 on average. The price to add an above-ground tank ranges from $275 to $1,725, not including the unit. By comparison, underground installation costs $1,125 to $5,150. If you arrange a lease with a qualified company, they may provide you with the installation for free.

Many homeowners are conscious about their fuel consumption. They want a way to provide heat for their homes that is efficient and cost-effective. Millions of homes run on propane. Since this is a complicated and risky job, always hire a pro to put in the tank and set up your home for use.

Average Cost To Install a Propane Tank

Average Cost$2,750
High Cost$5,150
Low Cost$275

Propane Tank Rental Prices + Costs to Install

Rental Costs for a 500-Gallon Propane Tank
Annual Rental Fee$0-$250
Cost to Install$0-$1,000
Annual Price of Propane$2,800-$3,850
Upcharge per Gallon$700-$2,100
Extra Delivery Fees$70-$210
Billing/Misc. Fees*$5-$50
Purchase Costs for a 500-Gallon Propane Tank
New Tank$1,000-$2,000
Cost of Installation$650-$5,150
Annual Price of Propane$2,800-$3,850
Standard Delivery Fees*$5-$50

* Delivery-based expenses such as fuel recovery, safety compliance, meter fees

the average cost to install a propane tank is $2,750 or $270 to $5,200

If you don't want to buy a unit, leasing one is a popular alternative. Companies offering rental tanks may charge little to nothing for installation, even underground. This is because of exclusivity and the added costs for leasing. A lease usually requires the purchase of a certain number of gallons of propane each year, often marked up with an upcharge per gallon. If you use the fuel for most of your heating and cooking, you will need about 1,400 gallons per year, on average.

Top Companies that Lease Propane Tanks

You may see several companies offering this service in your area. Here are a few of the biggest providers nationwide:

  • AmeriGas
  • Ferrellgas
  • Suburban Propane
Consult a Pro to Rent a Propane Tank

Underground Propane Tank Installation Costs

The costs to install an underground tank range from $1,125 to $5,150, not including the price of the unit.

Underground Tank Installation Expense Breakdown
Gas Line$200-$1,500

If you have limited above-ground space, or want to place the unit out of sight, this project may be a practical option. Depending on the size of the tank, putting a propane unit underground could be a significant undertaking. The amount you pay relates to:

  • the size of the unit,
  • whether you are renting or leasing it,
  • how many gas lines you need to connect to different appliances in your home,
  • whether you can get one company to do most or all the work.

If you are thinking about renting a tank, you should ask the leasing company about the installation services they will provide.


Excavating the ground costs $500 to $2,400. Given the size of an underground propane tank, excavation is a necessity. Average 500-gallon models require a hole about 5' x 5' x 12'. This represents 300-cubic feet of dirt, or about 11 cubic yards.

Excavating Ground for a 500-Gallon Propane Tank
Excavation Size Needed10-12 cubic yards
Labor Cost$50-$200 per cubic yard


On average, the cost of trenching 100 linear feet runs about $800. You may need less if the tank is close to the home.

If you need to move existing utility lines, you might require more. Homeowners should get trenching in addition to excavation to create space the line that connects the underground unit to the home. The company laying the pipes may or may not perform the trenching for you.

Hiring a Plumber

The rate to hire a plumber ranges from $45 to $150 per hour, not including any materials. It could be up to you to decide whether to get a plumber's opinion before the installation, but it is often a good call.

Installing an underground tank could disrupt water or sewer lines on the property. You may want to consult a plumber to confirm that you won't damage any of your home's plumbing systems, or to discuss installation of a gas water heater.

Installation Location

Your property may have several possible options that meet the basic requirements. Be specific with the company doing the work about your planned use, so they can help you pick the right spot.

  • Units should be close enough to the road that a company can stretch a hose (typically 100 to 150 feet long) to refill it.
  • For the protection of the home, the tank must sit at least 10 feet from the home.

Distance from the home could affect the total cost of installation. Installation of a new model often includes 25 to 30 feet of piping, but this may not be enough. Homeowners who want to connect a variety of appliances will need to pay extra for additional gas lines.

Once the tank is covered, it may not be easy to identify. Homeowners should add a marker so that they can avoid running over it with vehicles.

Gas Line Installation

The price to install one gas line runs about $200 to $500 for an average length of 20 to 30 feet. If you have a larger house, or you want to connect many systems at once, you may pay $1,500 or more.

The cost to hook up appliances and equipment to the propane system usually depends on the number of lines needed, and their distance from the tank. This expense does not typically include digging the trenches for the line or refilling the trench after installation.


You can expect to pay about $25 to $50 for relevant permits. You must obtain the proper permission to build and store a significant source of fuel on your property. You may get it from your city or possibly from your local fire department. Some regions require a plumbing permit as well.

Consult your local city guidelines for rules related to excavation on your property.

Annual Inspection of Buried Tanks

If you own the tank, you will pay $50 to $75 for an annual check. People who rent may receive this service from their leasing company for free or a nominal charge.

It is popular to schedule an inspection once per year. Someone skilled in the installation and maintenance of propane tanks can look for:

  • Proper function
  • Signs of leaks
  • Water content inside, if any
  • Condition of valves

Underground Tank Removal Costs

With all expenses included, the price for professional tank removal sits about $900. Sometimes, homeowners might decide to remove the unit, based on these and other reasons:

  • No longer using the service
  • Needing a system in better condition
  • Wanting to upgrade to a larger model

If you leased from a company, you must contract with that business to remove it.

Hire a Pro to Install or Remove an Underground Tank

Cost of Installing Above-Ground Tanks

If you want to install a 500-gallon tank, your costs might range from $275 to $1,725. The total expenses relate to the size of the tank. Putting a unit on your property may cost a lot less than installing it underground. This is because you don't need to pay for excavation or trenching.

Expenses for Installing an Above-Ground Tank by Size
Job120 Gallons259 Gallons500 Gallons
Concrete Pad$50-$75$75-$125$125-175
Install Gas Lines$200-$500$200-$1,000$500-$1,500

Reasons to Install a Residential Propane Tank

Most homeowners who use this fuel rely on it for various types of heating or cooking.

Propane Stove Installation for Cooking

You will pay between $1,000 to $15,000 for a propane grill, depending on the size and the related costs to build your outdoor kitchen. Professional appliance installation costs about $200. Many homeowners delight in an outdoor grill, also commonly called a stove. Hooking up your propane grill to a constant source of fuel makes cooking outside consistent and safer.

Gas Ovens

A new oven costs around $350 to $15,000, with another $100 to $200 for installation. The larger or fancier models tend to cost the most. With proper ventilation, you can put in an oven that runs on propane, too.

Furnaces and Boilers

Overall, installing a new gas furnace costs about $2,000 to $2,500. Similarly, putting in a gas boiler will cost about $5,000, including the equipment. Converting to gas from oil or electricity could require as much as $2,000 extra. Converting a furnace running on natural gas to propane may total about $100. Using propane to run the heating for your home could be an effective method that provides you with reliable warmth.

Hot Water Heaters

The price to install a water heater ranges from $1,000 to $3,000. Systems that run on gas come in standard and tankless models, with the latter costing the most. Adding this appliance to your gas line could afford you convenience and comfort.

Swimming Pool Heating

Installing a heater for a pool or hot tub that uses propane might come to $500 to $1,500. The total price depends on the equipment you already have. It could be an effective way to heat your swimming pool.

Indoor or Outdoor Gas Fireplaces

Installing an indoor gas fireplace costs around $2,100. The rate to build an outdoor gas fireplace runs about $3,000. The ability to get rid of your stock of firewood could be the incentive you've been waiting for. Hooking up your indoor or outdoor fireplace for propane keeps the heat running as long as you have gas available.

Get a Quote from a Plumber


Is it better to lease or purchase a gas tank for the home?

Deciding to rent or buy a tank depends mostly on your funds up front. Paying to purchase and install a unit, with the gas lines connected, could cost several thousand dollars. This is on top of the price of the appliances you want to run on the fuel, and their installation. By comparison, leasing a system can initially cost you almost nothing out of pocket.

How much does a propane tank refill cost, and who should I hire?

Although most propane refills include specific charges for the delivery, the primary cost is the fuel itself. As a standard, companies fill a tank to 80 percent of its capacity. For a 500-gallon model, that's 420 gallons. If you have a current lease, you need to call the company that owns the unit. Homeowners who own theirs could call any company in their service area that is qualified to refill it for them.

Are there special units for underground vs. above-ground?

As a general rule, smaller systems are intended for above-ground use. Once you reach the larger sizes, 500 or 1,000 gallons, you may discover that many units will work for either purpose.

What does propane tank recertification mean?

If your unit ever becomes truly empty, or if you don't know its condition, a company may want to recertify it before a scheduled refill. This generally involves an inspection of the tank to confirm that it does not have excessive water in it, and that it is safe to hold fuel. Some versions have a specified expiry date (e.g. 12 years), after which you must recertify them. Others, primarily larger ones, may not have a listed expiration.

When do I need to remove and replace my gas tank?

Here are a few reasons you might need to take out or replace your unit:

  • Signs of rust
  • Discolored valves
  • Leaks
  • Unsure of its age, condition or previous use
  • No longer want the tank, or want to upgrade

Can I install, refill, maintain or remove my own propane tank?

Handling large amounts of a highly flammable substance calls for a professional eye. As a result, hire an excavation pro for propane tank installation, upkeep and removal.

Hire a Plumber to Install a Propane Tank
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