How Much Does Propane Tank Installation Cost?

Above- vs. Below-Ground Propane Installation Cost

You have two options for installing a residential propane tank: above-ground or underground. Which option you select can significantly impact the total price of your project. Expect labor costs to be higher for a project that involves excavation, trenching, and plumbing.

Above

A much more affordable job than burying your propane tank, installing an above-ground propane tank will cost between $700 to $4,700. Above-ground installation will require a special concrete pad to serve as the foundation for your unit. You'll also need to have a gas line installed. If you already have a gas line and foundation in place, you might spend as little as $275.

Below

An underground propane tank offers benefits if you have limited space on your property. You’ll pay between $1,500 to $8,150, depending on the size of your tank and the length of the gas lines. Some homeowners want to pay more to keep a tank out of sight. 

Here's the labor cost breakdown when you're digging down to install your new propane tank:

• Excavating: $500–$2,400

• Plumbing: $45–$200 per hour

• Trenching: $400–$1,200

• Gas Line: $200–$1,500

Propane Tank Installation Cost Factors

Propane tank prices for residential propane tanks range between $275 and $4,700 without including labor. While most prices for the tanks themselves are straightforward and dependent on the size and capacity, you’ll find there are many cost factors that alter your project’s total price. 

Here's a look at some factors that may increase the cost of installing a new residential propane tank.

Propane Tank Size and Capacity 

The gallon capacity of the unit you're having installed will impact price for both underground and above-ground tanks, with costs ranging from $275 to $4,700 on average. Most homeowners need a 500-gallon propane tank to meet the demands of their homes.

Location

The average propane tank is spaced 10 feet away from your home and other structures, but different tank sizes come with different required distances from your home, HVAC system, and street.  

Generally, your tank should also be within 100 to 150 feet of the street for hose accessibility. Extra piping may be needed if your tank is located more than the recommended or required distances. The price of gas piping adds on an extra $15 to $25 per linear foot. 

It’s important to know the requirements based on the size of your residential propane tank. If you’re uncertain about the size, distance, or placement of your tank, ask your pro for recommendations.

Labor

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. 

Underground installations start at $1,125 and go up to that $5,150 price point, while above-ground installations cost between $275 and $1,725.

Inspections and Permits

Homeowners should also budget between $25 and $50 for permits when installing any style of residential propane unit. If you choose an underground propane tank, you’ll also need to pay $50 to $75annually for an inspection of the buried propane tank to check for leaks and to make sure the valve is in good condition. 

Excavations

Labor costs to excavate an underground propane tank range from $50 to $200per cubic yard. With most homeowners choosing a 500-gallon propane tank requiring 10 to 12 cubic yards, that brings costs somewhere between $500 and $2,400.

Additional Costs

There are a few additional costs that can add to the total price of your propane tank installation project. Keep the following factors in mind while you budget.

Concrete Pads

If you’ve opted for an above-ground propane tank, then you’ll need to install a concrete pad or slab before installing the tank. Larger tanks take up more space and therefore need larger slabs. Here's what the price breakdown looks like for concrete pads based on the size of your propane unit:

• 120 gallons: $50–$75

• 250 gallons: $75–$125

• 500 gallons: $125–$175

Installing Gas Lines

Next up is the cost to install gas lines. Here's what that looks like by size:

• 120 gallons: $200–$500

• 250 gallons: $200–$1,000

• 500 gallons: $500–$1,500

DIY vs. Pro

In addition to being illegal in most places, trying to install your own propane tank can be extremely dangerous and difficult. Unless you’re simply plugging in a small, portable propane tank, such as a 5-gallon tank for an outdoor grill, leave this project to the pros. 

A licensed propane installation pro knows all the ins and outs of safely handling flammable gases, as well as the restrictions and licensing needed.

FAQs

Should I bury my propane tank?

When deciding on whether you should bury your propane tank, keep in mind that underground propane tanks provide the benefit of allowing your yard to go back to normal without a visible tank. 

Buried propane tanks are also safer for cold climates because they are better at maintaining consistent temperatures and offer extra protection in the case of a leak. However, this project can be more complicated and costly than adding an above-ground propane tank because it requires excavation.

How big of a propane tank do I need? 

How big of a propane tank you need depends on what you’re trying to power. To power an entire home, you’ll want a 500-gallon propane tank. 

Small, portable propane tanks can cost under $275, but they can only power small items like a patio grill. Larger homes that have higher demands might need a 1,000-gallon tank.

How long does a propane tank last?

A 500-gallon propane tank can last over 30 years, but the lifespan of your propane tank depends on how well you maintain the tank, your climate, and whether you choose an above- or below-ground installation.