Owning Vs. Renting Your Home Propane Tank

Propane tanks are becoming an increasingly popular economical choice for everything from heating houses and powering appliances to warming pools and hot tubs and firing up outdoor fire pits or barbeque grills . If you’re ready to make the switch, consider the various advantages and disadvantages of renting and buying a propane tank.

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With so many benefits, it makes sense why an increasing number of people are making the transition to propane fuel .

The price of propane fuel is less prone to fluctuation than its substitutes, as the U.S. produces 90% of the total propane sold in the country. Along with price stability, studies show that users can save up to 50% on their electricity bills when switching to an energy-efficient heating system and following the proper maintenance.

This reliable, clean-burning fuel is listed by the Clean Air Act as an alternative to other fuel sources, promoting a cleaner environment with fewer emissions when compared to other petroleum-derived products.

IS IT BETTER TO BUY OR RENT A PROPANE TANK?

Goto ABYDA to know more.

• Automatic filling: Companies often have an autofill program written in their contract, relieving you from the process of finding another company to perform the same job.
• Safety: Since they are responsible for their tanks, companies will pay close attention to their customers’ safety and the integrity of their tanks.
• Freedom to move: Renting is an excellent option for those who plan to move within the next few years. If you move to a new house, the propane company will transfer the contract with you.

Companies include the tank’s installation within the rental contract, so you don’t need to hire a licensed professional to install the propane tank for you. If you’re looking to rent a propane tank in the Virginia area, Foster Fuels can help. 

DISADVANTAGES OF RENTING

Before the installation process, most companies require you to purchase the piping, fittings, parts and connections necessary for the propane tank, as renting these materials isn’t an option. Other disadvantages of renting your tank are:

• Credit checks: For the company to be sure you can maintain your payments, they will perform a credit check, where standards will vary by company and region.
• Minimum annual propane usage: Unlike owning a propane tank, where you can use as little or as much propane as you’d like, many companies set a minimum usage rate for your tank.
• Set supplier rate: Because you’re dedicating yourself to one gas company, you agree to their rates. Before committing, consider their current rates and choose one that works for you and your budgetary needs.

How Much Is It To Get a Propane Tank Installed?

The price of getting a propane tank installed will depend on several factors such as installer, location, and propane tank size. Smaller, 100-gallon propane tanks can cost $300-$500 to install. Larger tanks however can cost upwards of $1,000-$2,000 to install.

What Is The Average Propane Tank Rental Cost?

The rate you pay will vary based on the size of the tank you are renting. However, most propane tank rentals cost between $50 – $250 per year.

Should You Rent Or Buy Your Propane Tank?

Ultimately, choose the option that works best for you. For most people, it comes down to maintenance. Are you comfortable taking on the responsibility of repairing your tank? Or, would you rather the propane company take care of the repairs?

Learn More About Propane Tanks

Our main fuel is LPG (Liquid Petroleum Gas), which is delivered to a large tank in the garden and from there it feeds the heating boiler and cooker. When we moved here we contacted the supplier whose name was on the tank. They sent us a contract which we signed without really paying it too much attention. Big mistake.

LPG was 4 times the cost of mains gas!

The bills were awful, about 4 times what we were paying for mains gas! In fairness we had moved from a modern insulated property to an old solid-stone wall house which is harder to heat and just before the coldest winter for a century struck, but even so, 4 times as much for a smaller property!

Save Money on LPG – Liquid Petroleum Gas

Now we’re a bit more knowledgable and so, to help those who like us find themselves on LPG with no options a few tips that could save you money.

You Have a Choice of LPG Supplier – Whoever Owns the Tank

When you move into a house with an LPG tank, you don’t have to buy your gas from the tank owner whose name is on the side. Yes they own the tank but if you change supplier they sell the tank to the new supplier. It doesn’t affect you at all.

You Can Change LPG Suppliers Every 2 Years

The contracts last for 2 years and you have a legal right to change supplier then, although they’ll sign you up for 2 years. If you don’t have a current contract and many people haven’t signed a new one for years, then you can change at any time.

Calor, Flogas and Avanti

There are three main suppliers; Calor, Flogas and Avanti. Spend a little time phoning them and get a quote from each. This will be in two parts; a price per litre of gas delivered plus a standing charge for the tank, around £60 pa for an aboveground tank. Both are subject to 5% VAT.

No Transparent Pricing on LPG

Calor, Flogas and Avanti do not have prices displayed on their web sites. There isn’t an open comparison website either so the only way to compare prices is to contact them individually.

Haggle for the Best Price on LPG

Start by telephoning them all and getting a price. You’re in the land of haggle, just like the market in Tangiers where they ‘make you good price’ by doubling it to start!

Now, when you have the best price, ring the other two suppliers and see what they can do about their quote. Take the new best quote back to the previous best priced supplier and see if they can beat it. You can go round as many times as you like.

Things to Check on the LPG Gas Supply Contract

• Your contract will be for two years
• Make sure the price per litre is fixed for twelve months and that the second year price is capped not to increase beyond a stated amount. Make no mistake, they will increase the price as far as they can in year 2.
• Check the tank rental charge – this can be daily, monthly or annual.
• Read the contract carefully before you sign and go back to them for clarification in writing of anything you are unsure of or unhappy with. Do not sign anything where they’ve left a box blank. In my experience they’re as slippery as eels. Once you’ve signed, they’ve got you, remember that market in Tangiers? No refunds.

How we Saved Over £1,000 on LPG

Now, here’s our experience. For one hour’s work we have saved £1,172.00 on the price we were paying over two years.

We use about 3,000 litres of LPG a year. Our gas was being supplied by company 1 at 42.5p per litre plus VAT. When the contract ran out they offered us £100 credit on the account to sign up again at the same price.

I picked up the phone and company 3 said we were far from a depot but they’d get back to us, which didn’t happen, so forget them.

Company 2 came back with 29.5p per litre plus VAT, capped at 3p increase in year two plus £250 credit for switching.

Back to company 1 who now could offer 29p per litre, plus £250 credit on the account and year two capped at 3p increase. Both companies were about the same on tank rental.

I then moaned about a few service issues we’d had and said it wasn’t enough to tempt me to stay. Now we’d just had a tankful delivered (1174 litres at 42.5p) and they offered to credit that down to the new price, giving me another £166 which is when I agreed.

Final LPG Fuel Savings Calculation – £1,172.00

So previous cost over 2 years would have been about 6,000 litres at 42.5p plus 5% VAT – £2,677.50

New cost will be 3,000 litres at 29p and 3,000 litres at 32p plus 5% VAT – £1921.50

Savings £756.00 plus £250.00 plus £166.00 gives a total of £1,172.00

I wonder how many people are paying more than they need to.

John Harrison 2016

April 2018

Recently I was contacted by the Mail on Sunday who have published an article on this problem – you can read it here: Are you being held to ransom by suppliers over the price of LPG?

If you want to learn more, please visit our website Lpg Fittings Manufacturer.