Is Propane Cheaper if You Buy Your Own Tank?
Around 5 million American households use propane as their main heating source, and many others use propane to meet some of their energy requirements.
You’ve finally decided to start taking advantage of the benefits of using propane in your Long Island home. Is propane cheaper if you buy the tank? Or is renting a tank the better option?
Find out the costs of owning a tank compared to renting one. You can make an informed decision and get the best value from your propane tank.
Is Propane Cheaper if You Own Your Own Tank?
Owning your propane tank can save you money in many ways.
- Reduced price for propane: Many propane suppliers will give you a better price on propane if you own your tank.
- No monthly or yearly rental payments: You’ll have the upfront cost of the tank and installation, but you won’t have monthly or yearly rental payments.
- No contract needed: You don’t need to agree to a contract with minimum consumption rates and fees.
- Compare pricing options for tanks: You can choose a tank from any manufacturer. The price can vary somewhat by manufacturer, so you may be able to save some money by comparing your options. You can also choose a used tank, which will be a cheaper upfront cost than buying new.
Costs of Owning a Propane Tank
Propane tank ownership has some potential downsides..
Buying a propane tank is an expensive investment.
The cost of the tank will vary depending on the size of the tank, but you could spend several thousand dollars. You’ll need to pay for permits as well as installation costs like trenching, piping, and fittings.
You’re responsible for service and maintenance charges.
Owning your propane tank means that you’re responsible for service and maintenance charges. All propane tanks need regular maintenance. For example, you’ll need to replace the pressure regulator periodically according to the manufacturer’s guidelines.
Maintenance is especially important for underground tanks. You need to check the anode bags every two years. The anode bags keep the tank from rotting.
Advantages of Renting a Propane Tank
The supplier will maintain your tank
Renting a propane tank has benefits depending on your circumstances. One big advantage of leasing a propane tank is that the propane supplier will install and maintain it. You’re not responsible for those costs.
The supplier is responsible for repairs and replacement
Your supplier will repair or replace the tank if any problems occur. The supplier will perform regular testing. They’ll keep the tank certified and compliant with safety regulations.
Flexibility when you move
If you sell your property, you can transfer the propane lease to the buyer. You can also have the propane supplier remove the tank if the new owner doesn’t want it. You don’t have the expense of taking the tank with you when you move or trying to sell it.
Costs of a Propane Tank Lease
Renting a propane tank has some downsides. When you lease a propane tank, you can only buy propane from the supplier who owns the tank. You’re stuck with the rate they give you. For this reason, it’s important to do business with a trustworthy company.
You’re stuck with the supplier
This is not necessarily a bad thing if you find the right company. It’s important to find a trustworthy company that provides both good customer service and fair prices on propane. If you want to change suppliers, you often have to pay a termination fee. You’ll also have delays waiting for your current supplier to remove the tank.
You frequently have a minimum usage rate as part of your lease agreement. This minimum yearly purchase requirement could be a minimum number of appliances running on propane or a total BTU load.
When you rent a propane tank, it’s a given that you have to pay rent. In addition, the cost of propane may be higher than if you own your tank. The rental company is getting back the cost of installing and maintaining your tank through the price they charge you for propane.
Buying vs Renting a Propane Tank
From a cost perspective, choosing to buy or rent your propane tank depends on your situation.
Buying a tank is a large investment.
The lifespan of a propane tank can be over 30 years, so you’ll be using it for decades.
For some homeowners who don’t mind shopping around, being able to find the propane supplier with the lowest-priced fuel is worth the time and expense of owning a tank.
Most suppliers won’t lease an underground tank
If you want an underground propane tank, you may have to buy it. Most suppliers won’t lease an underground tank.
Renting is better for tank maintenance
You may prefer renting if you don’t want to handle all of the maintenance and service responsibilities that come with propane tank ownership.
Whether you choose to buy or rent, you’ll be taking advantage of the efficiency and consistency of propane.
Do you live on Long Island? Save up to 30% on propane with Propane Depot
When you’re deciding whether to buy or rent your propane tank, a propane supply expert can help you evaluate your options. The experienced professionals at Propane Depot will work with you to find the best solution for your propane needs.
Click here to request a quote or call us at 631-400-SAVE