Truth be told, the notable advantage of owning your own propane tank(s) is that you can buy propane from any supplier. If your tank is leased, you can only buy propane from the company that owns the tank. When a tank is leased the cost per gallon of propane can be upwards of 100% more than if you own the tanks. The supplier needs to pay for the equipment, so they get it back in the cost per gallon. Example: Customer A leased 120-gallon tank, pays $6.73 per gallon plus an $84-$190 annual fee for low usage fees, Customer B purchased tanks pays $3.19 per gallon and no annual fee. Upfront average costs $2,800 to purchase or $1,100 to lease. What you are going to use in gallons yearly and for how many years are the main factors in making this large investment decision.
If you’ve purchased a new home and the previous owners leased their tank, you’ll continue to use the same company. If you want to switch, however, you’ll need to either get a new tank or lease one from the provider you choose. So, if you plan to switch propane suppliers often—which is a bit of a hassle if you think you may save a few dollars—then owning a tank could be right for you.
The downside of owning your propane storage tank is that the responsibility for the tank is also yours. That includes maintenance, repairs, fees, safety checks, and more in addition to up-front purchase and installation costs. In fact, buying and installing your own tank could cost anywhere from $3,000-$9,000, depending on the size and type of tank and whether the tank will be buried!
On the other hand, if you have a company that you like and trust, leasing a tank can be your best option. A vendor supplied yearly Fuel Agreement will ensure safety and they will perform a thorough inspection of your tank and appliances and provide a safety certification for your home to ensure the system is reliable. Fuel Agreements also provide prompt, reliable, safe, and courteous propane delivery all year long. These Agreements can be made whether you buy or lease.
What Size Propane Tank is Right for You?
To know what size tank you need, you need to know how you will use your propane. To help you assess your needs, we’ll talk to you about a variety of factors:
- The size and square footage of your home.
- How many propane appliances you have currently.
- If you are planning to add more propane appliances or perform any renovations or additions in the near future.
- Your home heating trends and prior fuel usage patterns.