Propane installation - Above or Under Ground?

Jlblake · Feb 20, 2023

Just got a quote to install a new 500 gallon tank and put 400 gallons in it. $6,000 for above ground and $7,400 for below ground.

1. do these quotes sound reasonable? (there is a $200 fee included to get to my property)
2. is it worth the extra money to put the tank underground? I have plenty of room.

Downside to above ground is the possibility of a tree falling on it as best I can tell. Downside to underground is the additional cost...which is affordable.

Thank you!

ovrszd · Feb 20, 2023

I've never considered underground. The sight of the tank doesn't bother me.

Around here used tanks are going for $1.50 p/gallon. New tanks are $6 p/gallon.

Jlblake · Feb 20, 2023

This new tank is just over $6/gallon...$3,175 for the above ground one. They are quoting an additional $600 for the underground one...I thought they were the same tank.

jyoutz · Feb 20, 2023

When I converted to natural gas in 2021, I sold my 500 gallon tank to the propane company for $800. They were going to test, add a new valve, and paint. No doubt the resale price would be at least double that amount. Your cost estimates sound extremely high. How far do they have to pipe to your house? Another option is to rent the tank from the propane company. That way, there is no cost for the installation, except the pipe run. At a couple hundred dollars a year for tank rental, you will always be ahead of those purchase and installation costs. Above ground is the way to go unless there is an issue with aesthetics.

Jlblake · Feb 20, 2023

pipe is only around 20 feet. I haven't seen anyone offering rentals. I'll have to check that out. Thanks!

ruffdog · Feb 20, 2023

Most houses here have above ground tanks that are leased. Your propane supplier charges slightly more for the gas and maintains what is outside the house. If you change supplier, the tanks get switched.

oldnslo · Feb 20, 2023

Are you in an area that gets frequent tornadoes and does not flood. When I purchased my present home that was the questions gas company mentioned for underground vs above.

Concerns about tornados were not made clear but my guess on reasons are flying debris puncturing or damaging gas connection and or getting picked up and blown away. In flood plain they float so must be anchored.

thclimer · Feb 20, 2023

In our area if you have one in the ground you most likely purchased it and can have anyone fill it. If its above ground usually they are supplied by the company who only has the right to fill, thus limiting your ability to shop for the best price.

In addition to what has already been mentioned, underground tanks can corrode and usually are burred with a sacrificial anode, if it starts to leak I guess you would eventually smell it. If its above ground I think your chances of smelling a leak are improved.

2manyrocks · Feb 20, 2023

If you lease the tank, I'm not sure that you would be free to have it filled by another company. If you own the tank, you can shop for the lowest propane fill pricing. Usually, I found it cheapest to pre-buy my estimated propane needs during the summer season. If you wait and try to shop during heating season, the price is going to be more.