How much does a propane tank installation cost?
Ashburn, VA

How much does a propane tank installation cost?

Ashburn, VA

How much does a propane tank installation cost?

$250 – $1,000above-ground cost (labor only)
$300 – $3,000above-ground cost (tank + installation)
$1,000 – $2,500below-ground cost (labor only)
$1,500 – $5,000below-ground cost (tank + installation)

Get free estimates for your project or view our cost guide below:

$250 – $1,000 above-ground cost (labor only)

$300 – $3,000 above-ground cost (tank + installation)

$1,000 – $2,500 below-ground cost (labor only)

$1,500 – $5,000 below-ground cost (tank + installation)

Get free estimates for your project or view our cost guide below:
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Tamatha Hazen
Written by
Tamatha Hazen
Edited by
Tara Farmer
Fact-checked by
Tom Grupa

Average propane tank installation costs

Propane tank installation costs $300 to $3,000 for an above-ground tank or $1,500 to $5,000 for an underground tank, including the tank and labor. Installing a 500-gallon propane tank costs $1,000 to $2,500 for heating an average home. The cost of a propane tank depends on the size and installation method.

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

*Includes propane tank and installation. Cost data is from research and project costs reported by HomeGuide members..

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Propane tank costs by location

The main price factors when installing a propane tank are the size of the tank and where it is installed. Smaller tanks are often installed above-ground for easy refilling. Larger tanks are often buried to hide the unsightly tank.

Propane tank installation costs by location
Tank type Average installed cost
Above-ground tank $300 – $3,000
Below-ground tank $1,500 – $5,000

Above-ground propane tank

An above-ground propane tank costs $300 to $3,000 installed, depending on the tank size and location. Above-ground tanks are smaller and cheaper to install and maintain. These smaller propane tanks do not require excavation and are typically installed on a concrete slab.

Installing an above-ground propane tank may include these additional labor and equipment costs:

A large above-ground propane tank installed next to a home.
A large above-ground propane tank installed next to a home.

Underground propane tank

Underground propane tanks cost $1,500 to $5,000 with installation and are less of an eyesore since they are buried underground. Below-ground tanks are usually larger and more expensive to install, requiring heavy equipment for excavation. Excavation costs $100 to $300 per hour for an excavator and operator.

A large underground propane tank being installed.
A large underground propane tank being installed.

Propane tank prices by brand

There are several nationwide propane delivery services that deliver propane to your home. These services are primarily for larger tanks. For smaller portable tanks, most people use tank exchange programs at home improvement or convenience stores, rather than paying minimum delivery fees.

Propane tank prices by brand
Brand Average tank price* Tank sizes available
AmeriGas $300 – $1,200 100, 120, 250, 300, 500, 750, 1,000 gallons
Blue Rhino $15 – $65 5, 15, 20, 30, 40, 60, 100 pounds
Flame King $25 – $400 1, 10, 11, 20, 33.5, 40, 50, 60, 100 pounds
Ferrellgas $50 – $250 (portable)
$300 – $1,200 (permanent)
10, 20, 30-pound portable tanks
100, 250, 500-gallon permanent tanks

*Tank unit only. Labor not included.


AmeriGas is a well-known propane delivery service, with prices starting at $300 for a 100-gallon tank and reaching up to $1,200 for a 500-gallon tank, not including installation. AmeriGas offers a variety of tank sizes and services but may not be available in all areas.

Blue Rhino

Blue Rhino is not a propane delivery service but offers a convenient tank exchange program. The widely available grill-size propane tanks are sold at local suppliers for $15 to $25 for tank exchanges and up to $65 to purchase a new tank.

Flame King

Flame King refillable propane tanks are sold at Lowes, Home Depot, and Costco. Prices range from $25 for a 1-pound cylinder up to $400 for a 100-pound tank, excluding installation. Flame King's refillable tanks are eco-friendly and compatible with most appliances that use disposable tanks.


Ferrellgas is a nationwide company offering propane tank rental, tank installation, and will-call services, which allow you to call and schedule delivery as needed. Tank prices range from $50 to $250 for a small portable tank to $300 to $1,200 for a larger permanent tank, not including installation labor.

Propane tank installation cost factors

Propane tank installation costs depend primarily on the tank size and whether the tank is above or below ground. The table below shows the average cost breakdown for both types.

Propane tank installation cost breakdown
Installation factors Average cost for above-ground tank Average cost for underground tank
Tank $50 – $2,000 $500– $2,500
Installation labor $100 – $500 $200 – $800
Concrete pad $75 – $200 N/A
Connect gas line costs $75 – $300 $300 – $700
Excavation / trenching N/A $500 – $1,000
Total installed cost $300 – $3,000 $1,500 – $5,000

Above ground residential propane tank on rural property
Above ground residential propane tank on rural property

Other factors that influence the cost include:

  • Tank location – Underground propane tanks are more expensive than above-ground tanks. Also, the further the tank is to the street, the more piping is required for filling.

  • Site prep – Above-ground tanks require a cement pad, while buried tanks require excavating a hole with heavy equipment which increases costs.

  • Tank material – Steel propane tanks are more durable and expensive than aluminum tanks, but the newer fiberglass tanks are cheaper and lighter than metal.

  • Inspections and permits – Permits for installing a propane tank cost $25 to $50, while annual inspections cost $50 to $75 to check for leaks in a buried tank.

  • New vs. used

    • New tanks are more expensive, come with a warranty, and come with a fresh hydrostatic test, ensuring the tank can withstand high pressure.

    • Used tanks are cheaper but have no safety guarantee and must be tested and certified by a propane dealer.

  • Full vs. empty ­– By law, larger tanks are sold empty. Grill-size cylinders are usually sold full.

  • Recertification costs – Portable propane cylinders under 100 lbs. require periodic recertification to ensure they are safe to transport. Recertification costs $40 to $60 every 5 years to 12 years based on the date of manufacture.

  • Contract vs. will-call services – Many companies add an extra delivery fee for customers who prefer "will-call" ordering rather than regularly scheduled fill-ups.

  • Add-on costs

    • Old tank removal – Removing an above-ground tank costs $50 to $200, while a buried tank removal costs about $500.

    • Tank relocation – Moving an above-ground tank costs $100 to $200 for unhooking, moving, and reconnecting it on a new concrete pad. Moving a buried tank costs $1,000 to $1,500 to dig up, excavate a new hole, fill in the old hole, move the tank, and reconnect it.

    • Delivery fees – Standard minimum delivery costs $25. Expedited delivery within 3 days costs $200 extra, while emergency delivery within 1-day costs an extra $300.

    • Hazardous materials handling fee –Most companies charge a $10 hazmat fee for transporting hazardous propane.

    • Early termination fees – Canceling propane service before the end of a contract costs $100 to $250, depending on the company.

Installation labor

Underground propane tanks are larger and have higher labor costs of $1,000 to $2,500 to cover the costs for excavation, gas line trenching, and tank installation. Above-ground propane tanks cost $250 to $1,000 for labor, which includes pouring a concrete pad, installing gas lines, and installing the tank.

The labor cost for an underground propane tank ranges from $1,000 to $2,500 for the excavation, gas line trenching, and tank installation. Above-ground propane tank installation labor costs $250 to $1,000, which includes pouring a concrete pad, installing gas lines, and installing the tank.

Tank filling

Large propane tanks are typically delivered empty and then filled for $3 to $5 per gallon, on average. The cost of filling a tank depends on the tank size, the price of propane in your area, and whether your tank is above or below ground.

Buying vs. renting

The upfront costs of buying a propane tank are higher than renting one, but over time you save money if you own the tank. Owning the tank also allows you to choose your own propane supplier and negotiate better prices.

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Renting a propane tank costs $25 to $150+ per year, plus the cost of filling the tank. Renting a tank is cheaper upfront, puts the responsibility for repairs and maintenance on the propane company, and allows you to simply transfer your propane service to a new location if you move.

Propane tank refill costs

Propane tank refills cost as little as $15 to $25 for a propane grill cylinder and up to $4,000 for a tank able to heat a large home. When estimating tank refill prices, remember that only 80% of a tank is filled with propane, leaving room at the top for expansion.

Propane tank refill costs
Tank size Tank capacity
Average refill cost* Uses
20 lbs. 4.6 $15 – $25 Propane grills or patio heaters
100 lbs. 23 $70 – $120 Single appliances such as a cooktop
120 gallons 96 $300 – $500 Hot water heater or a small appliance like a cooktop
250 gallons 200 $600 – $1,000 Supplemental heating or 2 home appliances including a water heater, generator, or pool heater
330 gallons 264 $800 – $1,300 Multiple propane appliances such as a water heater, stove, and a clothes dryer
500 gallons 400 $1,200 – $2,000 Home heating or homes with 2-3 propane appliances
1,000 gallons 800 $2,400 – $4,000 Home heating for larger homes or those with all appliances running on propane

*Based on $3 to $5 per gallon propane costs.

20 pound propane tank used for grilling at home
20 pound propane tank used for grilling at home

Propane usage cost estimator

Calculating how much propane gas you will use per month depends on the size of your home and the number of appliances using propane heat. A 2,000-square-foot home in a cold climate uses around 800 gallons of propane per year if the heater and appliances run on propane.

Propane usage cost estimator
Appliance Estimated monthly usage (gallons) Average monthly cost per appliance*
Furnace 80 $240 – $400
Fireplace 16 (1 – 3 gallons per hour) $50 – $80
Water heater 20 (5 gallons per month/person) $60 – $100
Cooktop 5 $15 – $25
Clothes dryer 5 $15 – $25

*Based on $3 to $5 per gallon propane costs.

Propane tank FAQs

Who installs propane tanks?

Propane tanks can be installed by a variety of professionals, including:

  • Propane suppliers – Many propane suppliers offer tank installation services as part of their propane delivery and maintenance plans.

  • Gas fitters – Gas fitters are licensed professionals who are qualified to install and maintain gas appliances and systems, including propane tanks.

  • Plumbers – Plumbers are qualified to install propane tanks, as long as they have the proper certifications.

  • Homebuilders – During home construction, the builder may offer to install a propane tank as part of the home building process.

Can I install my own propane tank?

In most cases, you should not install your own propane tank. Propane tank installation is a complex process with several safety regulations that must be followed. Hire a trained professional to ensure the tank is installed correctly and safely.

Do I need a permit to install a propane tank?

You will likely need a permit to install a new propane tank. Permits for propane tank installation cost $25 to $50, depending on where you live.

Where can you install a propane tank?

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Propane tank location regulations vary from state to state, but in most areas, the tank must be installed at least 10 feet away from any building or source of ignition, like a furnace, water heater, or grill.

Getting estimates from propane companies

Here are some tips to consider when getting online or in-person estimates from propane companies near you:

  • Get quotes from several different companies.

  • Be clear about the tank size you want, where you want it installed, and what other services you're interested in.

  • Get estimates in the summer off-season to save money.

  • Ask about annual contract discounts instead of paying higher will-call fees.

  • Get everything in writing including the tank rental or purchase price, installation costs, and warranty terms.

Questions to ask

When contracting with a propane service, be sure to ask these important questions:

  • What are your prices?

  • What service and delivery fees are included in that price?

  • What are your delivery schedules for my area?

  • Do you offer will-call services rather than scheduling in advance?

  • What are your safety procedures?

  • Do you offer maintenance and repair services?

  • What size tank do I need?

  • Where can you install the tank?

  • Do you offer tank rentals?