Home Propane Tank: Rent or Buy?

[RedNeckGeek]

Checked my propane tank last week, and it's getting down toward empty. Now I'm trying to decide if I want to purchase one or keep leasing it. The lease for my 325 gallon tank is about $70/year, and the purchase price of that tank is $1050. So break even would be at 15 years. During the lease, the propane company will pay for any repairs and maintenance needed, but in the six years I've had it there's been no maintenance required. Is there any maintenance to do on a propane tank? And are there any "they all do that eventually" type repairs that are typical?

When I looked into this last year I asked the propane dealer to quote a tank price including a "wet tap" that would let me fill my picnic bottles, and though I don't remember the exact figure, I do remember being shocked at the price. Something like double the cost of a regular tank. Is this a tactic to discourage people from having wet taps, or is the necessary plumbing really that expensive?

I also wonder if tank prices vary by locality. I'm in Northern California (propane dealer is in Paradise). I wonder what others in different areas are paying?:confused3:

 

[newbury]

Yeah, I had to do maintenance on two 250 gal propane tanks. I had to replace all the stuff exterior to the copper pipe coming out of my building. That include tanks, meters, and about 400 gallons of propane. Somebody just drove up and took them.

Beyond that no repairs needed.

 

[davesl708]

A lot of internal corrosion can take place in 15 years. $70 per years is pretty cheap insurance.
A lot will depend on the tanks life. If left mostly below 1/2 tank and getting sunlight condensation could be a problem and rust the inside of the tank.
If you own it you take care of it. If it rust out the cost is on you.:2cents:

 

[Sawyer Rob]

Around here, IF you own your own tank, no one wants to fill it. They all say, they only fill their own tanks... BUT, when you choose a company as your propane supplier, they deliver a tank and install it free.

AND, there's no rent, as long as you use at least, a tank of propane a year, from them.

SR

 

[thatguy]

im in the same situation.. We own our tank (120 gal) but its pushing 10 yrs old.. so far no maintenance issues but i wonder whats ahead.. We have the same dealer that sold/installed it fill it - they are cheapest around..

I had read somewhere about having to replace the regulators etc on them

Do the larger tanks like mine, need to be 're-certified' like the 20# grilling tanks every 12 yrs? Whats involved with that?

Brian

 

[kcflhrc]

When we moved into our house in 2013 it had a 1000 Gallon propane tank right in the middle of the yard. The tank was owned by the previous owner so I inherited it with the house. I hated the location of the tank so I contacted the company that had been filling the tank. They came out and made me a deal. They would relocate the tank to behind my detached garage, install a new 500 gallon tank, and run a new line from the tank to the house. All I gave them was the old 1000 gallon tank. I also pay $45 a year tank rental and I'm fine with that. I installed a new heat pump with propane backup so I use very little propane. The rest of the house is all electric.

 

[pmsmechanic]

A lot of internal corrosion can take place in 15 years. $70 per years is pretty cheap insurance.
A lot will depend on the tanks life. If left mostly below 1/2 tank and getting sunlight condensation could be a problem and rust the inside of the tank.
If you own it you take care of it. If it rust out the cost is on you.:2cents:

The only way a propane tank can rust internally is if there is moisture in the propane. The tank will get condensation moisture internally if it's left open to the atmosphere but then there would be no propane in the tank.

Around here propane tanks are cheep. $200/1000 gals. Most tanks are old as everybody went to natural gas in the 70's. If you convert a tank into an upright incinerator for garbage they are worth about $1000.

 

[bjr]

Depends on location it looks like. And if you're a DIYer or not. If not a DIYer then rent everything you can and live in a rental apartment. Around where I live you "have to be a DIYer" or you get taken advantage of big time by the various vendors. Natural Gas is not an option, so I'm being told (there's a major transmission line a block down the street). Yes, I own my own 120 gallon tank, it's dated 1948, and (three 25 gallon tanks so I can load and haul to town and price shop for propane). I price shop on fillups for all tanks from the various delivery people. Some vendors try for extra inspection fees and surcharges, you just gotta watch them. All the neighborhood "Greenies" don't want anyone to have Natural Gas -- and People Should Only Use All Electricity, according to them. I'll stop here before this turns into a full scale rant. bjr

 

[teejk]

We have that same rule about no rent if a full tank is used annually. You might want to check around for that option. The one benefit of owning your own tank is you are not tied to a particular supplier. We are happy with the current supplier so I'll continue to use their tank and let them maintain it. Dunno about your area but with the abundance of nat gas now the propane market seems to be getting much more competitive and used tanks are plentiful.

 

[hawkeye08]

We have a 1000 gallon tank that we lease from vendor that fills it. We pay $100 per year and they take care of the tank maintenance, but in 23 years, they have not done anything to it. We cook and heat with it, using 400-500 gallons per year. Hot water and clothes dryer are still electric.

We could have saved some money by buying our tank, but suspect the propane vendors would have required something that costs a bunch at some point, which would have offset any money saved.

Most of the time, I am happy to pay the annual lease on the tank.