How Much Does Propane Tank Installation Cost?

Andy Sparhawk
Written by Andy Sparhawk
Updated January 11, 2022
propane tank between two bushes along side of house
Photo: David / Adobe Stock

The typical cost to install a propane tank at your home ranges from $275 and $5,150

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How Much Does It Cost to Install a Propane Tank?

The average cost to install a propane tank at your house is $2,750. The average propane tank installation cost is between $275 and $1,725 for an above-ground installation. The cost of an underground propane tank installation is between $1,125 and $5,150.

What Size Propane Tank Can I Get on My Budget?

A typical 500-gallon residential propane tank costs between $500 and $3,000. The wide range in pricing stems from the difference in cost between above- and in-ground installation. Installation can run as high as $5,150 or as low as $275, depending on the propane company’s incentives or whether the tank will be in-ground or above.

What Can I Get on My Budget of $2,000?

While 500-gallon propane tanks are standard, you could add a 250-gallon, above-ground propane tank for roughly $1,000. The installation would require a concrete pad, gas line installation, and permits totaling $625. A 120-gallon propane tank can be found new or used for $1,200.

What Can I Get on My Budget of $2,500?

Close to the national average, you could afford an above-ground 500-gallon tank for $2,500.

What Can I Get on My Budget of $3,000?

For $3,000, you could get an above-ground propane tank with a concrete pad, plumbed gas, and permits.

What Can I Get on My Budget of $3,700?

Excavation is a large part of the cost of placing a propane tank underground. The average price for digging and installing a 500-gallon tank underground comes in at $3,700.

What Can I Get on My Budget of $4,000?

Your budget of $4,000 is well within the range for an inground 500-gallon propane tank. Check with your propane dealer for incentive and installation discounts that will allow your budget to go further.

Reasons to Install a Propane Tank

Propane is a reliable, plentiful energy source that powers your home and allows you to do the things you love. Here are some reasons to install a propane tank.


Propane is considered a safe (non-toxic) and clean-burning heating source. Tanks can be buried underground, and propane furnaces require less maintenance than traditional ones.


Cooking with propane provides instant, even heating. The even heating reduces scorching and hot spots when preparing cakes, sauces, and casseroles.

Swimming Pool Heating

Propane heaters are more efficient at regulating your pool’s temperature than electric heaters or natural gas.

Outdoor Fireplaces

Propane burns cleaner, creating a more enjoyable outdoor living experience.

Propane Tank Install Cost Breakdown

small propane tank and grill on concrete home patio
Photo: tab62 / Adobe Stock

Whether above ground or below, understand the cost of installing propane tanks.

Above Ground Propane Tank Installation

Installation CostsPrice
Propane Tank$1,000 – $2,000
Concrete Pad$125 – $175
Install Gas Lines$500 – $1,500
Permits$25 – $50
Total$1,650 – $3,725

Underground Propane Tank Installation

Installation CostsPrice
Propane Tank$1,000 – $2,000
Excavating$500 – $2,400
Trenching$400 – $1,200
Gas Line$200 – $1,500
Permits$25 – $50
Total$2,125 – $7,150

What Factors Influence the Cost to Install A Propane Tank?

An average-sized home can run off a 500-gallon propane tank with routine refills throughout the year. Besides the size of the tank, other factors will come into play when installing a propane tank at your home. They include:

  • Tank size

  • Above ground or underground

  • Gas lines needed

  • Amount of contractors

FAQs About Residential Propane Tank Installation

Should I buy or lease a propane tank?

Buying your propane tank incurs significant upfront costs. Leasing has very low or no initial fees. By renting the tank, companies may insist you only use their propane refill services. If you prefer the freedom to shop around, purchasing a tank might be worth the initial cost.

Should I put my propane tank underground?

The primary reason to bury your propane tank is to conserve space and preserve your view. Underground propane tanks require routine checks for damage and leaks. Removing underground tanks will cost more to remove than above-ground tanks. Ultimately, you’ll have to decide what factors are most important to you.

How much propane does the average home consume?

The average home uses roughly 1,400 gallons of propane annually for cooking and heat. The average price of propane per gallon is about $2.30.

Is installing a propane tank difficult or risky?

Propane tank installation carries some inherent risks. Install your propane tank yourself with the proper tools, experience, and safety precautions. There is a reason why excavators are considered specialists, and plumbers need to be licensed.

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