Are you moving into a house with propane heating, or thinking about making the switch to propane? If you are, then you might’ve been asked by a provider if you want to buy your tank outright or rent it. Unlike heating oil tanks, where you own the tank most of the time, it’s not that simple with propane. There are a couple of other things that you might need to know. But don’t worry, I’ll be covering everything that you need to know, including the pros and cons!
What are the Differences and Similarities?
Propane is very different from heating oil. But they do have some similarities. For example, while most forms of heating nowadays doesn’t require a delivery, heating oil and propane still do. While it’s not necessary for forms of heat such as electric and natural gas, you must get a fill up to heat the home when using either propane or heating oil. Additionally, they also both need to be stored in tanks. While heating oil tanks tend to have a variety of tank sizes and styles, propane tanks tend to have one tank size. They tend to look like long round capsules. Heating oil and propane are also both stored as liquids and are turned into a gaseous state when heated/released.
One of the biggest differences between the two is the ownership of the tanks. Typically with heating oil, the homeowner will own the tank. Most of the time, you’re even able to buy the tanks from Home Depot or Lowe’s. However, when it comes to propane tanks, you usually rent them from the provider. But the downside to this is that you can only order from the dealer that you’re renting the tank from. Due to state propane laws, it’s often illegal to fill another providers tank. However, it is possible to own your propane tank! You can tend to buy smaller ones from Home Depot or Lowes, but these tend to be for outdoor grills. For larger capacity propane tanks, you’ll need to contact a dealer.
The Positives and Negatives of Owning a Propane Tank
The Pros
Freedom to Order: Owning your propane tank will give you the flexibility to shop around. This’ll allow you to get the best prices available to you and check out multiple dealers to see what their prices are.
No Consumption Minimum: Most propane providers will often have a minimum amount of propane that you have to consume to be a customer of theirs. Most companies do enforce this, but if you own your tank, you don’t have to worry about that consumption minimum.
Underground Installations: When renting a propane tank, usually you have to make it visible on your property. However, if you own it, you can install it underground! This will keep hidden and unlike underground steel tanks, it won’t be a problem for the environment as it gets older!
The Cons
Expensive Upfront Cost: When you’re buying your propane tank, you’re buying it outright. This often means that you’re paying the full price of the tank. Which will tend to be a bit more expensive at first. These tanks tend to be around $1,000 at least!
You’re Responsible for Tank Maintenance: When you own something, whether it be electronics, equipment or a home, maintenance is your responsibility. This is true as well for propane tanks. You might need to hire a propane service to help maintain the tank if you own it.
The Positives and Negatives of Renting a Propane Tank
The Pros
No Fees Upfront: When you own the tank and buy it outright, you’ll typically have fees upfront. However, when you rent the tank, there’s no upfront fees! The dealer will tend to also come and install it, free of charge!
Maintenance Falls on the Dealer: When you’re renting your tank, maintenance isn’t something that you have to worry about! If your tank needs to be repaired or replaced, your dealer is responsible for that! They’ll also service the tank when necessary.
The Cons
Expensive Cost Overall: As time goes on, renting a tank becomes much more expensive. This is usually because your dealer owns the tank. You won’t be able to shop around for lower prices and must adhere with the dealers prices. In most states, it’s illegal to fill another propane dealers tank. Even if it’s legal, out of courtesy for the other dealer, most providers won’t fill someone else’s tank.
Annual Usage Minimum: Most providers will tend to have high prices and rental fees. But, they give you an option to avoid this. Typically, this tends to be counteracted by an annual usage minimum. This requires you to burn a certain amount of propane a year to get those “benefits”. But, I’m using the word benefits loosely here.
No Price Flexibility: If another provider has a gallon of propane cheaper than yours, you won’t be able to buy from them. When renting from a provider, you’re locked into ordering from them. This doesn’t give you the control of prices and where you can buy from.
What Should you Go With?
When choosing between buying your tank outright or renting it, there’s a couple of questions that you have to ask yourself. I’ve listed the necessary questions to ask yourself before making this decision.
Are You Staying at this home for a long time? If you’ve lived in your current home for a long time already and have no intention on moving, or you plan on making this home your long term residence, then buying your propane tank makes the most sense. This will help save on costs throughout the years.
How Much Propane Will You Be Using? If you plan on using the propane tank for just heat and cooking then it doesn’t make sense to buy the tank outright. It would make more sense to rent the propane tank. However, if you plan on using it for heat as well, then buying the tank would be a good idea!
Are There A lot of Suppliers in your Area? If you have access to multiple suppliers in your area, then yes buying your tank is a good idea. This is because you’ll have multiple dealers in your area to order from and will have the freedom of choice. But if you don’t have many providers in your area, renting the tank is the best option.
Ultimately, deciding to rent or buy your tank is completley up to you. Your circumstances will be the determining factor for buying or renting. If your home came with an underground propane tank, then you’re in luck because you’re at an advantage. But the decision is up to you and will be determined by availability of dealers, location and personal preference.
Happy Heating!
Hunter
