Propane is used as an energy source in almost 6 million US homes today. Many energy companies offer homeowners the option to buy or lease a propane tank for their heating needs, but what’s the difference?
Gerner Energy is a big proponent of Buying Your Own Propane Tank vs. Leasing a Propane Tank. We like to consider ourselves a sort of Energy Supplier Fiduciary, in that we do what is best for our customers.
Whether you purchase or lease a tank, you should work with a reputable company that is licensed and insured to install tanks. They can help with pulling permits and organizing the logistics for installation. This can include digging holes for underground installations or pouring concrete pads for an above ground tank to sit on.
Owning Your Own Propane Tank
When you purchase your tank, you are not bound to a particular supplier and locked into their propane rates.
- You have the freedom to choose your own propane supplier.
- You can shop around and choose your own tank from any manufacturer.
- You’re not bound by a propane tank lease agreement, and not at risk of the supplier taking the tank back over billing issues.
- You’re not subject to additional fees that often come with lease agreements, like annual rental charges or maintenance.
- Your propane tank can be listed as an asset when selling your home.
- Owning your own tank is an investment, and can have a quick return on investment depending upon your propane usage.
Leasing a Propane Tank
While leasing a propane tank may allow you to avoid upfront capital costs of purchasing a tank, leasing a tank isn’t free – you will still incur costs for installation (whether aboveground or below ground) and typically pay a monthly lease fee for your tank.
- The timeline of your lease has the potential to complicate things if/when you plan to sell your home.
- When you lease a tank, that means you’re locked into a single supplier and can’t shop around — so you whatever your supplier charges for fuel, is what you have to pay; propane suppliers are not allowed to fill another company’s tank by law.
- The supplier has the right to remove the tank from your property if contracted terms are not being met – even if the tank is underground.
- All of your maintenance and extra costs associated with your tank are built into your leasing agreement.
- Suppliers often charge annual (or monthly) fees for tank rentals.
Choosing whether you want to buy or lease your tank is completely up to you. Not sure which option is best? Call Gerner Energy to discuss your options and see if buying or leasing is right for you.