Propane Tank Installation Cost: Above-Ground vs Underground (2026)
What it costs to put a propane tank in, from the prices sellers actually publish: Tankfarm lists above-ground install packages from $2,444 (120 gallons) to $7,825 (1,000 gallons), and underground packages at $12,049 (500 gallons) and $14,860 (1,000 gallons). Tank-only prices, the line and trenching rates, and the rent-or-buy sum below.
Prices checked October 20, 2026.
Source: EIA SHOPP residential propane survey. Week ending 19 October 2026. Refreshed 22 October 2026.
Published Installation and Tank Prices by Size
Most dealers quote privately, so these are the published listings we could read, named by seller. They are list prices from two sellers in two regions, not a national range. "Not listed" means we found no published price.
| Tank Size | Installed, above-ground (Tankfarm) | Installed, underground (Tankfarm) | Tank only (Chimney Cricket) |
|---|---|---|---|
| 120 gallon | $2,444 | Not listed | $1,936 |
| 250 gallon | Not listed | Not listed | $2,964 |
| 500 gallon | From $5,587 | $12,049 | $5,058 |
| 1,000 gallon | $7,825 | $14,860 | $9,390 |
Tankfarm packages include delivery, installation, the piping base fee and 25 feet of gas line (underground packages include excavation); trenching is extra, and tanks are sold only to Tankfarm propane customers in Connecticut, Massachusetts, Rhode Island and parts of New Hampshire. Chimney Cricket (Florida) prices are Arcosa ASME tanks, tank only, with free shipping in Florida and freight quoted elsewhere. Because the terms differ, Tankfarm's installed 1,000-gallon package is below Chimney Cricket's bare tank.
Cost Breakdown: What a Quote Should List
Where a seller publishes a line item, its price is shown; the rest we found no published price for, so ask for each one on the quote.
Chimney Cricket's tank-only list prices for Arcosa ASME tanks, 120 to 1,000 gallons (table above). Many suppliers bundle the tank with a supply contract instead.
Tankfarm's published LP piping rates: the above-ground base fee is part of every install package, with 25 feet of line; extra line is per foot.
Tankfarm's rate when the line has to run underground instead.
Tankfarm's trenching base fee and per-foot charge, plus $120 per trench where special seed is needed to restore the lawn.
Included in Tankfarm's packages; elsewhere quoted separately or bundled. Setting the tank, connecting the regulator and line, and pressure-testing the system.
A two-stage system: a first-stage regulator at the tank and a second-stage regulator at the house, which brings pressure down to what appliances use.
Set locally. Ask whether the installer pulls the permit and whether the fee is in the price.
Above-Ground vs Underground: Decision Matrix
| Factor | Above-ground | Underground |
|---|---|---|
| Installed price (Tankfarm, 500 gal) | From $5,587 | $12,049 |
| Installed price (Tankfarm, 1,000 gal) | $7,825 | $14,860 |
| Visible from yard | Yes; can be screened with shrubs | No; only the dome cap shows |
| Inspection ease | Easy; gauge visible from outside | Need to lift the dome cap |
| Temperature stability | Exposed; vapour pressure dips in extreme cold | Earth-insulated; steadier year-round |
| Corrosion protection | Paint; watch for surface rust | Coating plus cathodic protection required |
| Setback (NFPA 58) | 10 ft up to 500 gal; 25 ft for 501-2,000 gal | 10 ft |
| HOA / aesthetic | Often restricted in HOA neighbourhoods | Usually permitted |
| Best for | Most homeowners; lower cost wins | HOA-restricted lots, aesthetic priority, tight setbacks |
Should You Pay to Install, or Rent the Tank?
Renting removes most of the up-front bill but brings two ongoing costs: the rental fee and any per-gallon premium your supplier charges because you cannot take the tank elsewhere. The sum, with published inputs where they exist:
| Input | Published example |
|---|---|
| Installed price, 500-gal above-ground | From $5,587 (Tankfarm) |
| Tank set fee when renting | $100 (Polk-Burnett, 2025-26 schedule) |
| Yearly rental fee | $200 for a 500-gallon tank, charged only if deliveries fall below half the tank's capacity (Polk-Burnett) |
| Price gap, renter vs owner | Yours: your supplier's price minus the best written quote you can get as an owner |
| Yearly cost of renting | Rental fee + price gap x your annual gallons |
| Years to break even | Installed price / yearly cost of renting |
Every 10 cents a gallon of price gap on 1,000 gallons a year is $100 a year. With no gap and Polk-Burnett's $200 fee, $5,587 takes about 28 years to pay back; the gap is the number that decides it, so get it in writing.