Tips & Cost to Switch Propane Companies

For many people on Long Island, propane is the preferred way to cook, heat their homes, and generate hot water. It’s an affordable energy alternative, especially when natural gas lines are unavailable in your neighborhood.

About 47 million U.S. households use propane—a colorless, flammable gas—from everything from cooking to outdoor heating, according to the University of Wisconsin.  

But the truth is, not all propane companies offer the same level of service, fair pricing, or expertise. Especially in markets like Long Island where propane prices tend to be a bit higher, it makes sense to shop around for the best price.

Unfortunately, it can be difficult to tell if you’re getting the best value long-term since some companies will lure you in with a great introductory rate and then hike up the prices. Sometimes homeowners will stick with a poor quality service provider because they see switching to a more affordable or better service as too much of a hassle. In the following article, we’ll look at how to switch propane companies and examine if it is worth your time.

First, Determine if Your Propane Company Owns Your Tank

Homeowners have the option to own their tank outright or lease it from the propane provider.

Leased tanks create a few hurdles to switching propane companies

When you lease the tank, the propane company owns it. While this makes long term cost and maintenance easier, it is a small stumbling block when switching companies.

Here are a few steps you should take if the company owns your tank:

• Review your contract to understand your options—sometimes companies charge fees or offer a buyout option.
• Ask your new propane company if you can purchase the tank—by purchasing the tank, you can avoid the hassle of a tank switch out.
• Determine if you want to purchase the tank—purchasing the tank will give you more freedom to shop around, but it has a high up-front cost.

Return your tank—if you decide to return your tank, you should receive a credit for any gas left in the tank.

Switching is easy and inexpensive with customer-owned tanks

If you own your own tank, switching companies is relatively easy. You can stop service and start-up with a new company with a few phone calls.

Underground vs Above Ground Tanks Affect Cost of the Switch

There are two placements for propane tanks: Above ground and underground.

The typical above ground tank is the 120 gallon tank. Some homes require 2-3 120 gallon above ground tanks to be piped together to increase capacity. Underground tanks typically start at 500 gallons. A 500 gallon underground propane tank can usually fuel up to a 3,500 sq foot home. Larger homes (above 3,500 sq feet) may have a 1000 gallon to 2000+ gallon underground tanks.

Cost of switching above ground tanks is considerably less expensive

Switching companies with an above-ground tank is a relatively simple process. There is still labor involved, but the cost to switch is much lower.

Cancellation Fees: A Roadblock in Switching

Say you lease your tank and you want to switch providers. First you will want to examine your propane service contract and see if you have a “contract term commitment.” If you do, this means you have agreed to receive service from the company until a set date.

If your contract is set to expire in a relatively short period of time, you may find it worth your time to wait a month or two to avoid the termination fee.

Check for a Termination Fee

The next thing you need to check your contract for is a termination fee.

This is a standard fee in the propane industry and can cost you anywhere from $100 to $250. However, this fee will be offset by the credit you’ll receive for any gas remaining in the tank when the company collects the tank.

Determine if it’s worth waiting

However, if your service is terrible or inconsistent, or if the prices are overinflated it may make more financial sense to switch providers—regardless of the termination fee. 

See if your current provider will help with the termination fees

Also, you can take your case to your current provider. Explaining your reasoning for leaving may get your fee waived or a better contract. Make sure to make a list (with evidence) before you call. That way, you’ll have details to help you make your case before you call.

Research & Switch to a Reputable Company

You definitely don’t want the hassle of switching companies twice because of poor service.

Take the time and make sure the company you plan to switch to is keeping its customers happy. Anyone can make claims of excellent service and happy customers, but it is another kettle of fish entirely to have these people’s testimonials. 

Read Online Reviews

Read and evaluate online reviews of the company and check local news reports for unsatisfied customers. Doing some customer satisfaction research will help you decide if a propane company switch is worthwhile.

Cancel Your Auto-delivery

Once you’ve decided to switch companies, call or go online and cancel your auto-delivery and switch to will call, but don’t cancel your account just yet! This will ensure that you are not getting topped off by your old company before you need your tank removed.

Exhaust Your Propane Supply

To avoid a pump-out fee, the general rule of thumb is that your tank should be less than 30% full when it is removed. However, check the fine print on your contract. The percentage could be closer to 10%. “Restocking” and pump-out fees can run you hundreds of dollars, plus the service technician’s time. So burn that tank down before you call for the switch. 

Contact Your New Provider to Schedule Hook Up

Now that you’ve started burning your tank down and have done your research go ahead and make that call to your new provider. This will probably be the best part of the process. Your new company will be more than happy to set you up with your new service. Make sure to note when and how the company will place the tank and if they have a contingency for removing the old tank. 

Avoid Service Delays By Not Canceling Prior

One of the most critical issues is also one of the last. Don’t cancel your account or warn your current company you’re switching before your new provider does their installation.  They often will come top your tanks off or even disconnect them prior to being set up with your new supplier. 

Switch & Save up to 30% on Propane

Propane Depot is Long Island’s top rated family owned propane company offering propane delivery and tank installation complete with 24/7 service. Plus you’ll never run out of propane again with our smart propane tank monitors.

Stop overpaying for propane! Click here for a quote or call us at 631-400-SAVE