When you set up propane service, your supplier will almost always offer to rent you a tank. It sounds convenient — low upfront cost, they maintain it — but renting locks you into one supplier and costs far more over the life of the tank.
Here’s an honest comparison.
Renting a Propane Tank
Most propane companies charge $75–$250 per year to rent a residential tank. The tank remains their property, and they typically won’t allow a competing supplier to fill it — meaning you’re stuck paying whatever price they charge for propane, with no ability to shop around.
Pros of renting:
- Low or no upfront cost
- Supplier handles maintenance and eventual replacement
- Simple to get started
Cons of renting:
- Annual rental fee adds up: $750–$2,500 over 10 years
- Locked into one supplier — can’t shop propane prices
- Supplier can repossess the tank if you switch companies
- No asset value — you own nothing
Buying a Propane Tank
Buying your own ASME propane tank costs more upfront but pays off within 3–5 years for most homeowners. More importantly, you can buy propane from any licensed supplier — which typically saves $0.30–$1.00 per gallon or more by shopping competitively.
Pros of buying:
- No annual rental fees
- Freedom to use any propane supplier — shop the best price
- The tank is an asset you own (adds value to the property)
- ASME tanks last 30+ years with proper maintenance
- One-time cost with $350 flat-rate delivery nationwide
Cons of buying:
- Higher upfront cost
- You’re responsible for maintenance (minimal for ASME tanks)
- Requires a licensed installer for permanent installation
The Math Over 10 Years
| Renting | Buying (500 gal) | |
|---|---|---|
| Upfront cost | $0 | ~$1,283 |
| Annual rental fee | $150/yr | $0 |
| Propane savings (shopping around) | $0 | ~$200/yr avg |
| 10-year total cost | $1,500 in fees | $1,283 tank — then free |
| 10-year propane savings | — | ~$2,000 |
Most homeowners who switch to an owned tank save $3,000–$5,000 over a decade when you factor in both the rental fees eliminated and the propane price savings from supplier freedom.
What to Do If You’re Currently Renting
If you’re currently renting from a propane company, you can switch. The supplier will reclaim their tank, and you’ll need to have your own installed. The switchover takes 1–2 weeks typically.
When you buy from Propane Tank Traders, we ship directly to you with $350 flat-rate freight. A licensed local installer handles the permanent installation, and then you’re free to call any propane supplier for competitive fill quotes.