Propane Tank Payoff

[2rocky]

Considering a below ground propane tank that would hold over a year's worth of propane.

Currently have a 125 gallon tank . Used 796 gallons in 2019 at an average cost of $2.885 per gallon. Were I to buy a year's worth Last may at $2.50 (~800 gallons) I calculate a $300 a year savings.

If the below ground tank costs me $2500 that works out to an 8.3 years to pay for itself. I do need to add in installation labor too. Unknown yet.

Does that amount of time seem like a worthwhile investment?

Do other people buy a years worth of propane in the summer?

What is an acceptable payoff time period for this sort of expense?

 

[Hilljackoutlaw]

I buy a years worth in the summer usually at about $1.30/gallon. We rent our tank tho because it's like $13 a year for rent. If I buy one I'll be dead before $13/year paid for it.

 

[2rocky]

I buy a years worth in the summer usually at about $1.30/gallon. We rent our tank tho because it's like $13 a year for rent. If I buy one I'll be dead before $13/year paid for it.

The idea is a below ground tank. to "clean up" my yard mainly. They don't rent buried tanks...DaMN


I'm envious of your price though...

 

[Hilljackoutlaw]

Yea that huge white tank is quite the eyesore. We have discussed the bury option to.

 

[Dave N]

Sounds logical, but prices may or may not vary enough to get those savings continuously. I also wonder about resale on the property with an underground tank. I know that I have heard about gas stations having to dig up and replace tanks when the place got sold. Wonder about private homes.

 

[Southern Elk]

I have a 1000 gallon underground tank. It’s the only way to go in my opinion. Above ground tanks are an eyesore. I fill up at the summer fill price and usually have to refill once during the winter. I would do it just because of the convenience. Mine pays for itself over time.

 

[Gr8bawana]

My wife and I wish we would have known how cheap propane is compared to electricity. When we ordered our house we had it plumbed for propane but only for cooking. Had we known we would have had a propane water heater, propane dryer and a propane furnace as well.
Since we only cook with it our 57 gallon tank lasts us about 18 months.

 

[Nick87]

Sounds logical, but prices may or may not vary enough to get those savings continuously. I also wonder about resale on the property with an underground tank. I know that I have heard about gas stations having to dig up and replace tanks when the place got sold. Wonder about private homes.

I don't think the propane tank would be an issue. A lot of old farmhouses around here have old fuel tanks buried in the yard.

 

[BigHornRam]

If you own your tank, you can shop around. If you rent, you have to buy from the company you rent from, and will pay more. My last house had a buried tank, lived there for 14 years and it paid for itself. New house has natural gas and it is way better than propane.

 

[midwesthunter]

I had LP at my first house I built. I rented (free from lp supplier) a 1000 gal tank from a local supplier. After first year they said didnt use enough so down graded me to a 500 gal tank. Had to fill it up in winter at higher prices. 3rd year, said didnt use enough so they down graded me to a 375 gal tank. Now had to fill twice a year. Decided to just buy a used 1000 gallon tank so I could price shop for best fuel price. Worked great for 2 years. Then everyone had a $200 inspection fee if I wanted to switch suppliers. Just make sure you cross all your T's and dot your i's

 

[2rocky]

Ah yes.... The good ol' inspection fee. And Pressure test...

As for Propane Vs Electric...Looks like annual cost for both is about the same right now. Central heat and a gas insert are the only LP users.

Haven't penciled the option of an on-demand water heater though...That would need to be gas...

Solar might make electric pencil better though. I'd like a battery system for emergency power outages/ off grid though. I could recharge them with a generator. But that is another discussion

 

[Addicting]

Also if you do a buried tank make sure that multiple companies can fill it. Near us Amerigas never lowered their rates and charged 2.79 a gallon plus delivery fees and taxes. Almost every other provider was at 1.59 a gallon or cheaper. I got a 500 gallon tank filled at 1.19 a gallon with no tank or delivery fees. That will last me till spring when the prices go back down.

 

[kenton]

For my work I contract 7,000 gallons a year in 11 tanks all underground. Being able to ask for bids from 5 or 6 companies really reduces the cost. Usually starts around $1.99/gal and ends up $1.19/gal...$5600 a year savings. If you own the tanks, its a buyers market; if you rent the tanks, its a sellers market. Be sure to shop around for the tanks too. A little leg work goes a long way.

 

[88man]

I like posts like this. Hunt talk info network

 

[sbhooper]

We have a 500-gallon tank and use about a hundred bucks worth every couple years. Gotta love a wood furnace! I would be leery of burying a tank, because of corrosion issues. You don’t have much control over a buried tank, if any kind of problems occur.

 

[Zach]

Ouch $2.88/gal! I thought my $1.60/gal was high.
I'm on a leased 500 gal tank with an auto fill every 6 weeks in the winter. My 2019 cost was just under $2k.

My tank is in a location I don't consider it an eyesore. If anything I'd like to buy a 1k gal tank to lower my costs as I can buy freelance for as little as $1.25/gal. on avg.