Above-ground tanks offer several advantages, including cost-effectiveness in installation, easy accessibility for filling and maintenance, and affordability in terms of repairs or replacements. However, the primary drawback lies in their aesthetic impact, as these tanks, typically measuring 8 feet in length and 30 inches in diameter, may be considered unsightly and take up valuable yard space. Additionally, above-ground tanks are more susceptible to theft.

On the contrary, underground tanks, while involving a more elaborate installation process that includes digging a large, deep hole, present distinct benefits. Despite the higher upfront costs associated with heavy equipment rental and increased labor, underground tanks offer superior protection against extreme temperatures and weather events, factors that can adversely affect above-ground tanks. Furthermore, the risk of propane leaks is minimized when the tank is underground, with the added advantage that any potential damage is limited to the grass above, reducing the risk of fire.

The cost of the tank and propane remains consistent, regardless of whether it is installed above or below ground. Additional expenses for underground tanks stem from the heightened labor and materials involved in the installation process.

Tank size is a crucial factor in determining propane tank installation costs. Residential propane tanks typically range from 20 to 1,000 gallons, with 20-gallon tanks suitable for smaller applications like outdoor grills or dryers. The more common sizes include 120, 250, 500, and 1,000 gallons. A 120-gallon tank suffices for one to two small appliances, such as a fireplace and an oven, while a 250-gallon tank is suitable for water heaters and auxiliary heating.

For households with multiple propane-powered appliances, such as a furnace, water heater, and stove, larger tanks ranging from 500 to 1,000 gallons become necessary to meet the demand effectively.