Propane tank prices vary greatly depending upon the size and model (above ground tank or underground unit). The cost for customer owned tank is higher than leasing a tank from a dealer. Read this HomeQuicks article to know about this.
As the name goes, a propane tank is designed for containment of propane gas under high pressure condition. It is a reliable gas for use as an energy source, and remains in a liquid state under normal atmospheric pressure. This liquid form is maintained in storage tanks of various sizes for use in heaters and other appliances. The prices differ based on the size, type, and installation mode of the storage tank.
According to size and installation, propane tanks can be portable and stationary. The former comprises low capacity cylinders and bottles, whereas, stationary tanks are large and installed above ground or underground. The cylinders are popularly used in portable heaters and grills, home gas stoves; and in some cases, heater systems and forklifts. On the other hand, the stationary tank prices are high, and used for supplying gas fuel to all propane-operated appliances.
Basically, there are two types of portable tanks, single use and refillable. The former is designed for one time use with grills, during outdoor picnic or camping. Once the gas is over, the tank is discarded. Whereas, refillable propane tank is made up of thick, durable material, which can be refilled, after it runs out of gas. It is ideal for use in heating systems and gas stoves. Of course, the single use, grill tanks are less expensive, as compared to refillable models.
As far as size of propane tanks are concerned, the above ground units are available in 125 gallons, 250 gallons and up to 1000 gallons. For underground tanks, the gas holding capacity starts from 500 gallons. The tanks can be owned individually, or rented from a dealer, based on individual preferences. Accordingly, prices of residential tanks vary, though owning one is always a little costlier than renting it.
While renting a propane tank, make sure that the requirements, and renting charges stated by the dealer are understood first. Some dealers offer tanks without renting fees, provided that the owner purchases a standard amount of gas every year. However, most dealers charge an annual fee of about USD 75-130, or more for 120-125 gallon tanks. These prices may be higher depending upon the size – the larger the size, the higher will be the fee.
For homeowners who want to purchase and install an above ground tank of 120-250 gallons, the total cost will come to about USD 450-1000. A larger size, 500 gallon tank costs nearly USD 800-2500, including the installation charges. Coming to underground propane tank prices, the average cost for installing a 500 gallon tank is approximately USD 1800-3000, while a 1000-gallon tank costs somewhere around USD 2000-3500. In case of any defects, the company bears the repair cost.
For those who cannot afford new home propane tanks, installing used units is a cheaper alternative. The cost of a 500 gallon tank may range from USD 325, to as high as USD 625. Nevertheless, one should closely examine the durability and quality of the used tank before buying one for home. For safety purpose, it is always recommended to take the help of a professional dealer, in ascertaining the quality of used tanks before closing the deal.
As you have seen, the prices of home propane tanks are relatively higher for customer owned tanks, as compared to taking it on rent. Additional charge is expected if the tank is installed at a farther distance from the house. Nevertheless, while renting a tank, the homeowner is expected to purchase fuel only from the dealer. The deal is usually applicable for 3-5 years. If not, a huge fine is chargeable, in case a leased tank is refilled by a different dealer.