Both above-ground and underground propane tanks are safe, ASME certified, and widely used across the U.S. The choice between the two comes down to aesthetics, lot size, installation cost, and local regulations.
Above Ground Propane Tanks
Above-ground tanks sit on saddle legs or a concrete pad and are visible on your property. They are the most common choice because installation is simpler and less expensive.
Advantages:
- Lower installation cost — no excavation required
- Easier for technicians to inspect, service, and refill
- Faster to install — often same-week
- Easier to relocate if you move
Disadvantages:
- Visible on the property — some homeowners find them unsightly
- Require setback distances from structures, property lines, and ignition sources
- More vulnerable to vehicle damage or vandalism
Underground Propane Tanks
Underground (buried) tanks are installed below grade with only the dome and riser visible at the surface. They are popular in neighborhoods with HOA restrictions or where appearance is a priority.
Advantages:
- Virtually invisible — only a small dome is visible
- Smaller setback requirements in many jurisdictions
- Protected from weather and physical damage
- Consistent temperature helps maintain propane pressure in cold climates
Disadvantages:
- Higher installation cost — requires excavation
- Must use an anode bag (magnesium anode) to prevent corrosion in the soil
- Harder to inspect and service
- Cannot be easily relocated
Underground Tanks Require an Anode Bag
Any propane tank buried underground must be protected against galvanic corrosion from the surrounding soil. A magnesium anode bag is buried alongside the tank and acts as a sacrificial anode, drawing corrosion away from the tank. This is not optional — most jurisdictions require it and it significantly extends tank life.
We sell anode bags separately for both underground 500-gallon and 1,000-gallon tanks. See our anode bags →
Cost Comparison
| Above Ground | Underground | |
|---|---|---|
| Tank price | Lower | Slightly higher (riser included) |
| Installation | $300 – $800 | $1,000 – $2,500+ |
| Anode bag required | No | Yes |
| Permit required | Usually | Usually |
Which Should You Choose?
If budget is the priority, go above ground. If aesthetics matter — HOA restrictions, neighborhood standards, or you simply don’t want a tank visible in your yard — go underground. Either way, both options deliver the same reliable propane supply.