Despite the potentially high cost of installing a propane tank, the significant advantages of having a self-reliant source of energy for essential tasks such as cooking, washing, and heating far outweigh the expenses, especially in remote urban areas where access to the main energy supply can be disrupted.

It is worth noting, however, that while the average cost of propane tank installation based on reviews is around $3500, it can range from $300 for an above-ground tank to as much as $7000 for an in-ground one.

Additionally, there are several factors to take into account that may work against you during the installation process.

Cons of propane tanks

propane tanks

Limited storage capacity

They have limited storage capacity, which means that you may have to refill them frequently, especially if you use propane for heating, cooking, or powering appliances.

Safety concerns

Propane is a highly flammable gas and there is always a risk of leaks or explosions if the tank is not handled or stored properly.

Propane tank cost

Tanks of propane and fuel can be expensive, especially if you live in an area where the cost of propane is high.

Maintenance requirements

Propane tanks require regular maintenance to ensure they are in good condition and functioning properly.

Transportation limitations

Transportation represents a challenge because the propane tank is heavy and difficult to transport and use on the go, for example, for outdoor camping trips.

Vulnerability to temperature changes

They are sensitive to temperature changes, which can cause pressure to build up inside the tank. This can lead to leaks or even explosions.

How much does it cost to install a gas tank?

The tank installation cost can vary depending on several factors, such as the size of the tank, the location of the installation, and local labor and permit costs. Here are a few factors that can affect the cost to install a propane tank:

Size of the tank

Larger tanks will cost more to install than smaller tanks.

Location of the installation

The cost of installing a gas tank depends on the installation location, such as the proximity to a road, the size of the property, the accessibility of the installation site, and if it’s an underground propane tank.

Permit costs

In some cases, local permits may be required to install a gas tank, and these costs can vary depending on your location.

Labor costs

The cost of labor can also vary depending on the location and the availability of qualified professionals in your area.

It’s important to get quotes from several local gas providers to determine the cost of installing a gas tank in your area and to make sure you’re getting a fair price for the installation.

Pros of propane tank


As we said from the beginning, installing a propane tank provides flexibility from the electricity and natural gas provided by a central line. A propane tank gives you independence.

Variety of uses

Not only for cooking but is also used in fireplaces, heating, generators, hot tubs, etc.


Generating electricity costs twice as much as propane, however, propane is more costly economically but also more efficient because is more efficient and you can save money.

Burns cleaner

Propane is a relatively clean-burning form of energy. It is a low-carbon fuel and is even used as a substitute for gasoline in some vehicles, reducing greenhouse gas emissions by as much as 10%.

Cost of a propane tank installation

You need to know why a propane tank costs so much. Here we explain:


A propane tank is not full of propane. Only 80% of the tank capacity is filled, for safety and pressure reasons. Thus, a 100-gallon tank will be filled to only 80 gallons. New tanks come with an overfill protection device.

Cylinder certification

The National Fire Protection Association (NFPA) and the Department of Transportation (DOT) require periodic recertification of stationary propane cylinders by qualified service technicians.” It costs approximately $5 to $60. Recertification must be done on any cylinder less than 100 pounds twelve years from the date of manufacture, and every five years thereafter.

Local building codes

The municipality has requirements that must be met to avoid disasters and fines. For example, underground tanks must be installed at least 10 feet away from any traffic line, building, or property.

Longer engine life.

According to the U.S. Department of Energy, many gas car users use propane to reduce maintenance costs for light and medium-duty vehicles, such as trucks and cabs, and for heavy-duty vehicles, such as school buses.

Propane is also useful in cold weather. As a fully gaseous mixture, propane-powered vehicles have no starting problems, as traditional vehicles do.

Cost of a propane tank

propane tanks

The cost can be determined by size, whether it is new, used, rented, above ground, buried, by filling, by weight, or by volume. Costs range from $50 to $2500.

Small tanks

Typically small propane tank for grilling, stoves, etc. They usually cost between $50 and $200. A standard 20 lb tank costs about $35, while a larger 100 lb tank costs about $150.

Tank cost per gallon

The more gallons you have the fewer refills you will need, as a 500-gallon tank can refill every 6 months.

On average a 500-gallon propane tank costs $1500, and a 1000-gallon tank costs approximately $2500. In most cases, propane tanks larger than 500 gallons require a permanent underground installation.

Usually, farms and agribusinesses need more than 5,000 gallons of propane per year, which means more installation and filling costs. These costs typically range from $11,000 to $80,000 for capacities between 2,000 and 3,000 gallons. The latter can supply small communities.

Cost of renting a propane tank

Unbelievable, isn’t it? You can rent a propane tank. Their costs range on average between $50 and $200 per year. Depending on the size, location, and supplier. The rental includes installation and repairs for minimum annual propane consumption. Refills must come from the same company with higher propane rates.

Costs of home propane tanks

If you only need to use a few appliances, a 250-gallon propane tank costs $1,200 to install. To power all the systems in your home, installing a 500-gallon tank will cost between $1,500 and $2,000. You may prefer the additional storage of a 1,000-gallon tank for a cost of $3,100 to $4,500 installed.

Buried and underground propane tank cost

An underground tank includes labor in addition to the cost of the tank. The tank alone costs between $1,200 and $5,200. Most homeowners spend $1870 for a 500-gallon tank. Ideally, an above-ground propane tank installed if your property is in an area with frequent flooding. There may be a problem with the tank “floating,” causing the tank to shift or float if water rises above the propane level in your tank.

How much does a 1000-gallon propane tank cost?

On average it can cost $4500 in urban areas. From 250 gallons and up they are installed underground.

The cost of labor for excavation and trenching must be taken into account in this case, since it is usually buried in the ground. These costs range from $500 to $600, starting at $95 for the first 30 minutes and $75 per man-hour.

How much is a 250-gallon propane tank?

Propane tank prices range from $1,250 for a 250-gallon tank to $1,550 to install a 500-gallon tank and approximately $3,150 for a 1,000-gallon tank.

Cost of propane per pound

Although propane is rarely sold by the pound, a small conversion can be made, 1 gallon weighs approximately 4 pounds.

How much does it cost to fill a 100-pound propane tank?

Following the above conversion, 1 gallon weighs 4 pounds, and the pound is worth $0.92. A 100-pound tank, equivalent to 25 gallons, is worth $150.

Having a propane tank, that is well-installed, safe, and up-to-date with the requirements of the municipality, is an excellent investment. In the end, the cost to install a propane tank is outweighed by the benefits.

What is the average cost to install a propane tank? was last modified: February 28th, 2023 by Vanessa Gallanti
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