Propane tanks: owning vs renting (Atlantic: lease, how much, house)

[r11]

Have a friend that has his own - says he can call different delivery Cos and choose one with lower rates, while those with rented tanks are at mercy (as in captive audience) of their chosen provider.

What do you fine people think ? Anyone knows a supplier of tanks, say 500 gal above-ground tank ?

[thecoalman]

Some companies won't fill them if they don't own them.

[jimazee]

Originally Posted by r11

Have a friend that has his own - says he can call different delivery Cos and choose one with lower rates, while those with rented tanks are at mercy (as in captive audience) of their chosen provider.

What do you fine people think ? Anyone knows a supplier of tanks, say 500 gal above-ground tank ?

I would also consider a 1000 gal tank. Propane tanks are only filled to about 80% of rated size (400 gal in 500 gal tank...). There may not be that much difference in the overall cost. I know you said above ground, but as a more general answer... this is especially likely if you bury it, where installation costs are a larger part of overall cost. For this you have to hire a person with a backhoe. This is usually easy when done in new construction. The tank will have to be bedded and cushioned in a certain way. Using the large tank enables storing more at the 'better' price.

Nevertheless, 'buying right' requires you to speculate on things like the world political situation as it affects pricing. Discounting the politics and market speculators, generally prices should be lower in late summer and early fall. Oh, and also if you have a tricky driveway, and a normal sized house, larger tanks also gets you through the winter without any delivery hassles.

When I investigated a few years ago, I concluded it was worth the investment by allowing shopping for favorable prices and good dealer relationships. So far it has worked out that way.

Many propane firms will supply a tank. You want to be sure you are buying not renting/leasing one that they still own. They may require a delivery to fill it or a year's contract etc. I have had good success dealing with Airline, Paraco, and Atlantic. Keystone also has a good reputation. There are others, some are small family operations you might like.

You should just call some that service your area and see whose terms you like. I think they are accustomed to inquiries on tanks and fuel. It is a competitive business.

[r11]

Jim,

it is precisely the competitive nature of business that one is deprived of when renting tanks from a company - as u end up at mercy of whoever owns the tanks. Appreciate your advice.

Anyone knows a company that sells/installs the tanks and what should I expect to pay for one ? Say 500 gallon vs 1000, above ground ?

[tivoliman]

I like the freedom to comparing suppliers, when you own your own tank.

But the idea that suppliers only fill their tanks - annoys me.

This whole thing about propane tanks is new to me.

How much is it to buy and install a tank? Propane would be used to heat the house, which would be used on weekends - and it about 1,400 SqFt (two stories)

Lakeville area (Wayne County)

Summary:
Is it better to buy or rent the tank?

[Riverside4ever]

Our tank is owned by Keystone , 2 yrs ago It was April they came topped off the tank and then I shut it off. ( we only use propane for heat ) Now in April the tank was at capacity 80% .. When October came I went to turn the heat on went to the tank and saw that it was only at 50% full .. OH CRAP I thought .. I got a spray bottle with dish soap and started spraying the regulator and sure enough there was a MEGA leak... So I called Keystone and reported that .. They came and fixed the regulator .. And because it was THEIR TANK and THEIR regulator THEY replaced the propane that was lost .. Now If the tank was MINE That would have been my problem.. But because it was theirs They had to suck it up and correct it .. Plus tanks are only good for like 10 yrs I think then they have to be checked or disposed of ..( or is that just the 20 gallon ones ) ( our tank is 500 gallons ) . Just my 2 cents

[jimazee]

Originally Posted by r11

Jim,

Anyone knows a company that sells/installs the tanks and what should I expect to pay for one ? Say 500 gallon vs 1000, above ground ?

Originally Posted by tivoliman

How much is it to buy and install a tank? Propane would be used to heat the house, which would be used on weekends - and it about 1,400 SqFt (two stories)

Lakeville area (Wayne County)

Summary:
Is it better to buy or rent the tank?

There is a lot of discussion on pros and cons not only in this thread but others. Do your homework. Read up on it. You will get different opinions, based on a few variables, some will be personal to you finances, house, lifestyle, etc. If it was a 'simple' answer that covered all, there wouldn't even be a choice in the market.

After reading enough to feel like you have the basics, call some of the suppliers that service your area, Ask them about buying/renting and installing tanks. My experiences are a few years ago, and my providers (some mentioned above) may not service your area.

I am happy with my current 1000 gal in ground setup, done when the house was built. I have used three suppliers in about 5 years. It pays to check the market regularly. We get deliveries 2-3 times a year. I doubt I always get the lowest spot prices, but do OK over time, compared to some others. Timing and luck are factors when the market moves. Besides spot buying, alternatives for both owned and leased tanks include auto delivery at negotiated prices/contract. I think some companies prefer you use a contract, monthly 'budget' payments, etc.

(Oh, I also have a remote gauge that helps me to watch the level of fuel. If you keep a record of this over time and also the temps and prices you pay, it gives you some info to help manage deliveries etc. a little smarter. The gauge I have, is just OK ...but works well enough to help and prevent me stumbling through the snow yard to read a gauge on the tank.)

Your mileage may vary...

[tivoliman]

Seeing the actual deal with the supplies will be best

I'm also interested in central heat (propane) - so I'll be seeing the suppliers anyways - needs installed. Want to replace the electric baseboard.

[thecoalman]

Propane isn't going to save you much if anything plus you need to consider the installation costs.

Electric @ $0.11/kWh = $32.24

Propane @ $2.50/gallon = $34.22

Those are per million BTU costs and assumes 80% efficiency on propane furnace.

If you know what the local rates are and the efficiency you can do your own calculation:

Fuel Comparison Calculator for Home Heating

[mathjak107]

ppl in our areas is .15 per kwh