Beyond pipe length, the decision to rent or buy, the location of the tank, and its size, there are a few more considerations that play into propane tank installation cost. Other cost factors include these:
- Any mechanical support needed
- Permits and inspection fees
- Removal, if needed
- The tank’s location
- Your annual inspection cost
Even once the tank is installed, you’ll likely need to pay between $50 and $75 for a yearly inspection. Though it’s an added cost, this step will help ensure your safety. During a visit, the inspector will check to ensure there are no leaks, corrosion, or gouges. They’ll also check the regulator and valves, replacing them if necessary.
If you need an above-ground tank, you must install a concrete pad or slab. Larger tanks take up more space and therefore require larger slabs, which results in a slightly higher installation cost. Here are the prices for concrete pads based on the propane unit’s size:
- 120 gallons: $50–$75
- 250 gallons: $75–$125
- 500 gallons: $125–$175
Filling the Tank
You’ll also need to pay to fill your tank. According to the U.S. Energy Information Administration, the average propane cost in the United States is around $2.69 per gallon. However, your home’s location plays a large role in propane prices. For example, Iowa features an average cost of $1.93 per gallon, while Florida’s average propane price is $4.69 per gallon.
Gas line installation is a necessary part of propane tank installation. As with other additional costs, the size of the propane tank influences the cost of installing gas lines. Here’s what gas line installation costs per propane tank size:
- 120 gallons: $200–$500
- 250 gallons: $200–$1,000
- 500 gallons: $500–$1,500
Beyond the choice to install underground or above-ground, your broader geographic location can play a factor. Installation costs will likely be higher if your yard is rocky or on a steep incline. Furthermore, you’ll probably pay more if your home is located a substantial distance away from the company or contractor installing the tank, as they’ll have to drive machinery out to your location.
Putting the tank in place, especially if it’s underground, often requires heavy machinery. If this part of your property is difficult for machinery to access, you may face extra charges. Usually, the tank location must be close enough to a road for a truck to be able to drive up next to it.
Permit and Inspection
Installation of a new propane tank will likely require a permit. Most cost between $25 and $50, but you’ll want to check with your city or county for an accurate picture of permit pricing in your area. You may also need to pay for an initial inspection by the fire department.
Between drainage, disconnection, and excavation fees, you could pay $500 or more if you decide to have your propane tank removed. Because there are significant safety and environmental concerns that accompany removing a propane tank, this must be completed by a propane company. As with installation, the cost will be higher if the tank is located underground.