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.

5030 · Feb 20, 2023

I own 3. All above ground. All 500 gallon. I can fill with anyone I choose. Burial is not an option here.

2manyrocks · Feb 20, 2023

I bought a 500 gallon tank that is above ground. Until I switched to NG, I was using about 1,000-1,200 gallons a year, with most of it burned in December-February in middle Tennessee depending on the amount of cold weather we had. I wished I had more tank capacity when I was heating with propane. The OP's situation could be different depending on region, house size, supplemental heating with wood....

But if the OP anticipates adding a second tank, I'd say above ground would be much less expensive.

jyoutz · Feb 20, 2023

thclimer said:
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.

True about being locked into the company who owns the tank to buy propane. But how many years of saving 20 cents per gallon shopping around would it take to equal the $6-7k price the op was quoted to buy and install?

dougtrr2 · Feb 21, 2023

What about inspections? If you switch suppliers I would think they have some kind of inspection criteria to make sure your tank is safe to fill. How do they inspect an underground tank?

I am only basing this on my little grill tanks. When I get them filled they are somewhat inspected. I only know this because the guy was training a new guy.

Doug in SW IA

3Ts · Feb 21, 2023

I have a 1000 gallon underground tank. I top it off once every 2 years. The above ground and underground tanks are not the same. They are built differently in that the dome and controls are different since the underground one has to have a snorkel and have a different coating on them.

The benefit of the underground is 1) I own it and can shop for the best price. (underground tanks can't be rented) 2) The tank is at a more stable temperature year round (and warmer in winter) so the vaporization rate is not an issue in cold weather 3) It's out of the way

The benefit of the large tank is: 1) I have it on a generator and it will run the generator for a week if necessary. (I've been without power for 9 days in the aftermath of a hurricane) 2) the larger tank will ensure that the vaporization rate is not an issue

They do inspect the underground tanks periodically by hooking a meter up to it somehow/somewhere and doing something with it. Obviously I don't know what they do, but they tell me they inspected it.

ovrszd · Feb 21, 2023

I own my above ground 1K gallon tank so can shop wherever.

Not sure I understand the vaporization rate issue? I've never saw a problem that I know of.

I agree with "out of the way". But sounds like you still have above ground plumbing to mow around?

For me, I can't justify burying the tank.

check · Feb 21, 2023

I have a 500 gallon above ground tank, and I pay rental on it to my propane supplier. It only cost me about $60 Canadian per year to rent. So I don’t think I’m ever going to buy one. And it is tucked away in a convenient spot about 20 feet or so from the cottage. And hooked up to my automatic standby generator, which is 12 feet from the tank. It all works very well, and nothing really gets in the way. The spot is also sheltered from heavy winds, and not likely to have any trees fall on it.

Oh yeah. A few years sgo I had a tank monitor installed. so I always know how much propane I have, via the internet. Also, the company sends me a little report every couple of weeks.

ovrszd · Feb 21, 2023

check said:
I have a 500 gallon above ground tank, and I pay rental on it to my propane supplier. It only cost me about $60 Canadian per year to rent. So I don’t think I’m ever going to buy one. And it is tucked away in a convenient spot about 20 feet or so from the cottage. And hooked up to my automatic standby generator, which is 12 feet from the tank. It all works very well, and nothing really gets in the way. The spot is also sheltered from heavy winds, and not likely to have any trees fall on it.

Oh yeah. A few years sgo I had a tank monitor installed. so I always know how much propane I have, via the internet. Also, the company sends me a little report every couple of weeks.

My supplier only charges $36 p/yr rental fee. I rented for several years. They will only rent 500 gal tanks. Now we use 1100-1200 gallons p/yr. Had some spare cash so bought a used 1K tank last Fall. Got a smoking deal at $500 for the tank. Had it sandblasted and painted for another $500. Will take me 28 yrs to break even.

What I gained was the secure feeling that I don't have to worry about running out. My supplier won't come in the busy Winter season unless you are below 20%. I didn't like that. In severe weather I use 10 gal p/day.

5030 · Feb 21, 2023

Under ground not allowed here

stumblinhorse · Feb 21, 2023

I have had them all. I had owned a 1000 gallon buried. I rented a 500 gallon buried. I owned a 500 gallon above ground. Now down to a 300 gallon above ground.

Biggest advantage for me buried is the explosion a tank causes in a fire.

But for what they cost I would rent now.

ddbackhoe · Feb 21, 2023

dougtrr2 said:
What about inspections? If you switch suppliers I would think they have some kind of inspection criteria to make sure your tank is safe to fill. How do they inspect an underground tank?

I am only basing this on my little grill tanks. When I get them filled they are somewhat inspected. I only know this because the guy was training a new guy.

Doug in SW IA

yes, they do. They come out (usually the delivery guy) and perform a leak test and record the btu ratings of all gas appliances (to guesstimate your annual usage and delivery schedule).

Locally, purchase tanks are hard to find. Rental is common, but suppliers may have a per gallon upcharge as well as a rental fee. Buried tanks are done, but IMO, I would not bury a rental. We have been hired more than once to dig up a tank with the customer complaining about how the supplier was charging 2-3 times more per gallon.

On the small (20 lb) exchange tanks (gas station, home dumpo, etc) they aren't 20 lb anymore, they only fill to 15.