Installation of a 500-gallon propane tank is the process of setting up a massive tank wherein propane can be stored as propane gas for heat and cooking, as well as for operating appliances. Such tanks can either be installed above or underground, depending on preference. The installation cost varies based on location, site complexities, and other factors.
Are you pondering how much it would cost to install a 500-gallon propane tank at your property? You should know the cost differential between above-ground and below-ground tanks. Price can vary from one to many factors; thus, it would be beneficial to know the details before formulating your budget.
Installing a propane tank above ground should typically cost between $700 and $2,500, and for those that are buried underground, it ranges from $1,500 to $3,000. The prices may vary according to your region, transport charges, and the type of installation that is specifically needed.
What is a 500-gallon propane tank?
A 500-gallon tank is a large outdoor container that is intended to hold propane gas. It will accommodate up to 500 gallons of propane—a sufficient amount to power a household for numerous months. Most use these tanks if they supply homes with energy and fuel, either for business or home locations not served by a natural gas line.
This tank is generally placed outside the house or building. It is large and all but ideal for someone who needs quite large amounts of propane. They fit well for houses where there are many appliances powered by propane, such as heating, stoves, and water heaters.
Average propane tank installation costs
Tank size (gallons) |
Average total cost |
| Under 100 | $20 – $65 |
| 100 | $300 – $500 |
| 120 | $400 – $900 |
| 250 | $500 – $1,200 |
| 330 | $700 – $1,500 |
| 500 | $1,000 – $2,500 |
| 1,000 | $2,000 – $5,000 |
Propane tank costs by location
The cost of a propane tank installation can vary depending on your location. Rural areas often have higher transportation fees, which can increase overall costs. Additionally, local labor rates and supply availability may also affect the final price.
1: Above-ground propane tank
The installation expense of above-ground propane tanks ranges from $300 to $3,000, depending on the tank dimension and placement site. These containers stand shorter, and their installation alongside maintenance expenses is less than underground storage units. Installation of these tanks remains easier because they do not need excavation work. Above-ground tanks are placed on concrete slabs to achieve their stability needs.
2: Underground propane tank
Installing an underground propane tank includes costs ranging from $1,500 to $5,000 based on the project. The financial burden of these tanks increases because excavation work, together with specialized installation, constitutes the majority of their installation costs. Underground placement helps create more available space and defends the tank storage against environmental impacts. People tend to choose underground propane tanks for appealing looks, especially with limited space available above ground surface.
Propane tank installation cost factors
Several elements affect the entire expense of propane tank installation projects. The main expense elements for propane tank installation include the following breakdown:
1. Installation Labor
- Above-Ground Tanks: Installation charges for above-ground propane tanks usually vary from $250 to $1,000, including a concrete pad, service lines, and tank installation.
- Underground Tanks: Labor installation of an underground tank costs more because it involves excavation and trenching. Ranges from $1,000 to $2,500 just for labor. The labor is pricier due to needing heavy equipment because they have to dig a hole to set the tank up inside.
2. Tank Material
- Steel Tanks: These are more affordable than other raw materials like aluminum but are more durable and lighter in weight. Steel tanks are formed to withstand harsh environments as they are highly robust.
- Fiberglass Tanks: These tanks are much lighter than their steel or aluminum counterparts and often cheaper, though they may not be as durable. They still serve as a great alternative for most installations.
3. Inspections and Permits
- Permits: Most installations require a permit, which ranges in cost from $25 to $50, depending on your locality and local regulations.
- Suggested inspections: You make each year to check for leaks, and safe operations could cost between $50 and $75, especially for underground tanks.
4. New vs. Used Tanks
- New Tank: Costly but without warranting the fact that they have been tested thoroughly to handle high pressures.
- Used Tank: Cheaper but without a safety guarantee, will have to be tested and certified by a propane dealer before being put into service, which could include extra expenditures.
5. Full vs. Empty Tanks
- Larger Tanks: By law, propane tanks of 500 gallons or larger must be sold empty:
- Grill-Size Tanks: Under 100 lbs: typically full and ready for use, saving the consumer the initial fill.
Contract vs. Will-Call Services
However, most propane companies add delivery fees to customers who order ‘will’ -call’—customers call when the tank is low and do not get tank refills regularly. Regular fill-up plans cost less in comparison.
- Old Tank Removal: For an old propane tank replacement, the expense of removing an above-ground tank ranges between $50 and $200, while for an underground tank approximately $500.
- Tank Relocation: If you want to relocate your tank, above-ground tank transfer will cost $100-$200, but the removal cost of an underground tank for transfer would range between $1,000 and $1,500 above ground. If it’s necessary to move your tank above ground, fees vary from $100 to $200, while underground tank relocation falls from $1,000 to $1,500.
- Delivery Costs: The minimum delivery charge usually is $25. Expedited delivery (3 days) incurs another fee of about $200, while emergency delivery (within the week) costs $300 extra. Some companies charge a $10 hazmat guarantee fee for bringing propane since it’s highly hazardous.
- Early cancellation fee: You will pay an early cancellation fee of between $100 and $250, depending on how your contract states if you cancel your propane service.
Tank Filling
The next step requires tank filling after the installation is completed. The quantity needed to fill the tank depends on its dimensions, while the local propane market determines prices. The market price for propane falls from $3 to $5 per gallon. Vendors charge the same price per gallon for filling propane tanks that exceed 500 gallons.
- Seasonal Changes: Electronic fuel prices change with the season and impact propane costs. The heating demand spike during winter months drives the prices of propane up.
Buying vs. Renting a Propane Tank
- Buying: Owners of propane tanks gain control over costs by selecting their suppliers and getting better price agreements even though they must make an initial investment. You will eventually save funds if you purchase your propane tank.
- Renting: The choice to rent a propane tank costs less at first, while the provider maintains the system and assumes repair responsibilities. The annual rental rate of propane tanks starts at $25 and reaches $150 but includes the tank filling fees. People who change addresses often should consider tank rental as an appropriate choice.
Propane tank refill costs
The expense for propane tank refilling depends on how large the tank is. Twenty-pound propane storage units demand between $15 and $25 to refill the contents. You must spend between $70 to $120 to refill a 100 lb. tank. A 500-gallon propane tank requires a refill amount ranging from $1,200 to $2,000.
The installation of additional propane appliances requires a 1,000-gallon propane storage unit. The price bracket for refilling this tank falls between $2,400 and $4,000. The market value of propane fuel adjusts across different geographical areas during particular periods. The price of propane services rises during winter due to increased consumer demand.
Additional Considerations and Costs
You are researching the buying process and the installation requirements for a propane tank. You discussed three categories, which we can easily summarize as follows:
- Used Tank Purchase: When purchasing an underground container, ensure it has proper testing and certification from a propane dealer. This guarantees safety and filling with propane while also giving you the choice of an alternate distributor who may offer a better price per gallon.
- Location Requirements: For underground tanks, installation must meet distance regulations that are 10 feet away from roads, buildings, or property lines. Larger tanks require more clearance, up to 20 feet.
- Mechanical Support: Installation often requires equipment for the movement of the tank site, which must allow adequate access to this equipment.
- Permit and Inspection: The installation of almost all new tank installations will require permits and inspections by the fire department.
- Annual Inspection: You would have to pay between $50 and $75 for a yearly inspection since you own the tank; if you lease the tank, the leasing company pays for the inspection.
- Tank Removal: The removal of an old underground tank would cost $500 for excavation and removal.
Are you planning to install a tank soon or just gathering information for a future project?
Pros and Cons of Installing a 500-gallon Propane Tank
Considerable advantages and disadvantages in installing a 500-gallon propane tank. Some of the good and bad for consideration:
Pros:
- Large Capacity: This propane tank will really store a great deal since much of the appliances run specifically on propane
- Convenience: Having most people have their propane tank, the need for local natural gas lines will not exist as they will readily have access to source energy 24 hours a day, every day.
- Cost-Effective for Large Homes: If you use a lot of propane, a 500-gallon tank is more cost-effective in the long run, as it will not cost so much in the end, considering all those years. They will just use it all up at one go (bulk purchase) rather than repeatedly buying back in small amounts.
- Self-Sufficiency: Having a propane tank allows you to be more independent from the utility companies. You can control when to refill the tank based on your needs.
Cons:
- High Initial Cost: The cost of buying and installing a 500-gallon propane tank can be expensive. It is a significant investment.
- Space Requirements: A 500-gallon tank takes up a lot of space. If you don’t have a large yard, this could be a problem.
- Maintenance: While propane tanks are durable, they require regular inspections and maintenance. This can add extra costs and time to your schedule.
- Weather Sensitivity: Propane tanks can be affected by extreme weather. If you live in a place with very cold winters, you may need to take extra care to ensure the tank doesn’t freeze or become damaged.
Is It Worth Installing a 500-gallon Propane Tank?
In situations of heavy propane usage combined with a spacious location for a large tank, the installation of a 500-gallon propane tank is worth the money. It can give you great flexibility in controlling your energy needs. It will also give you a lot of propane for lower prices over time. If you occasionally use propane or reside in a smaller home, then a smaller tank or a leased tank is probably more suitable.
Conclusion
Installation of a 500-Gallon Propane Tank-The large decision of installing a 500-gallon propane tank carries many costs, such as tank costs, installation, and maintenance. The costs of installation, itself, could range from $1,000 to $2,500, and this is largely dependent on the location and choice of company. Efficient preparation before installation can really help minimize the inconvenience of the installation, and this means choosing a suitable location and clearing the site where the installation will be done. Carefully weigh the pros and cons regarding whether a 500-gallon tank will serve your home.
With adequate planning, a 500-gallon tank can serve you as a reliable and affordable source of energy for many years to come. With the knowledge of lease and sale options, the installation process, and the installation cost, you will surely make a good decision.
FAQS
Q1. How much should a 500-gallon propane tank cost?
It can range from $2,000 to $3,500. It is worth noting that the cost varies according to brand and features. Additional charges might include delivery and installation.
Q2. How Much Does a Used 500-Gallon Propane Tank Cost?
The price for a used 500-gallon propane tank weighs between $600 and $1,800. The variation is due to the age and condition of the tank. Make sure before buying the tank it is inspected for rust or damage.
Q3. Is it cheaper to refill a propane tank or to buy a new one?
Refilling a propane tank is cheaper and costs about USD 2-3 for each gallon. Thus, a new tank purchase is a once-in-a-lifetime expense but much costlier than periodic refills.
Q4. What is the life of a propane tank of 500 gallons?
A 500-gallon tank can last anywhere between 30 and 50 years when maintained properly. Tanks must be inspected approximately once every 12 years and recertified once every five years. Proper standard maintenance enhances the lifespan.
Q5. How long will the generator run on a 500-gallon propane tank?
Typically, a 500-gallon propane tank can run a generator for around 250 hours. This is dependent on the fuel consumption pattern of the generator (about 2 gallons per hour at full load), which in turn means that it can last 31 days if used for 8 hours a day.
