Leased vs. Owned Propane Tank: Your Rights, Plans and Deliveries
Should you rent your propane tank or buy it? Can you switch companies? Which price plan makes sense, and what do you do if your propane company doesn’t show up? Here’s what homeowners need to know, explained simply.
Based on state consumer guides (WI, NC, ME, MN, TX) · By Nathan Brooks · Reviewed Oct. 15, 2026
Leased or owned: what’s the difference?
Think of it like renting or buying a water heater. With a leased tank, the propane company owns it, installs it and maintains it. With an owned tank, it belongs to you, like any other part of the house.
| Leased tank | Owned tank | |
|---|---|---|
| Who can fill it | Only the company that owns it. In some states, like North Carolina, it’s against the law for another company to fill it. | Any company you choose, after they do a safety check |
| Upfront cost | Little or none | You buy the tank and pay to install it |
| Yearly costs | Sometimes a yearly rental fee, often waived if you buy enough propane | Repairs, inspections and eventually a new tank are on you |
| Switching companies | The old company has to remove its tank, and there may be a pickup or pump-out fee | Easy: call a new company and ask for a safety inspection |
| Best for | People who want it simple, or who might move soon | People who plan to stay and want to shop around for lower prices |
Based on consumer guides from Wisconsin DATCP, North Carolina Department of Agriculture and the Maine Governor’s Energy Office.
Not sure who owns the tank at your house?
This comes up a lot when people buy a house that already has a tank. Most above-ground tanks belong to the propane company, but some buried tanks belong to the homeowner. Look for a company name or sticker on the tank, check your closing papers (the seller should say if the tank was leased or owned), and call the company whose name is on it. If you think you bought it, keep proof such as receipts, cancelled checks or bills that never charged you rent.
Is buying your own tank worth it?
It comes down to one question: will owning the tank save you enough each year to pay back what you spend on it? Get two real quotes (one for a leased tank and one for filling your own tank) and put them in here:
Payback calculator
Check last year’s bills, or use our heating cost calculator.
This is just an example. Use the difference between your real quotes.
Prices vary a lot by size, and buried tanks cost more to install.
How to switch propane companies
You’re usually free to switch, but how easy it is depends on who owns the tank and whether you signed a contract.
- Read your contract first. Look for how much notice you need to give and any fees for leaving early, removing the tank or pumping out the propane that’s left.
- Get quotes from other companies. Ask for the price per gallon and every fee, in writing. Maine’s energy office found that prices don’t follow location, so a company a few miles away can be much cheaper.
- If you lease: the new company will set its own tank, and your old company has to pick up theirs. Ask if they will credit or refund the propane still in the tank. If they’re slow to collect it, North Carolina’s consumer guide suggests sending a certified letter with your request and dates, and giving them at least two weeks.
- If you own: call the new company. They’ll do a safety check of your tank and lines before the first delivery, which usually has a fee.
- Switch in the off-season. Late spring and summer are when companies are least busy, and prices are usually lower too.
Which price plan should you choose?
Propane companies usually offer a few ways to pay. None is always best. It depends on your budget and how much risk you’re comfortable with.
- Market price (will-call): you pay the price on the day you order or the day it’s delivered. Ask which one, because it can change in between.
- Pre-buy: you pay ahead for your winter gallons, usually in summer, at a set price. Extra gallons beyond what you bought are charged at the market price.
- Fixed price or price cap: a fixed price stays the same all season. A cap sets a maximum but lets you pay less if prices drop.
- Budget plan: spreads your yearly cost into equal monthly payments. The payment can be adjusted in mid-winter if you use more than expected. In Minnesota, companies must offer the same budget plan to all customers.
Find the plan that fits you
When is the best time to buy propane?
Usually late summer and early fall. Fewer people are heating, so demand is lower, and Minnesota’s Commerce Department notes that buying in warmer months usually means lower prices. Last winter showed it clearly: the average home propane price rose from October to March in all six states we track, by 16¢ to 39¢ a gallon. On a 400-gallon fill, that’s $64 to $156 more for the same propane.
You can follow prices week by week on our propane prices and news page. The EIA’s weekly survey restarted in October, and I post a short summary of what changed every week.
What to do if your propane company doesn’t deliver
Delivery delays happen most during long cold snaps, when every company is busy at once. If your tank is getting low and nobody has come:
- Call early, not at the last minute. Order when the gauge reads 20% to 30%. Texas’s Railroad Commission tells homeowners to order right away if it’s under 20%.
- Write things down. Note the dates and times you called, who you spoke to and what they promised.
- Ask for an emergency delivery and whether there is a fee. In Maine, if you’re on automatic delivery and the company lets you run out, the Attorney General says you shouldn’t have to pay an emergency delivery fee.
- If you own your tank, call other companies. Any of them can fill it after a safety check.
- If you lease, another company usually can’t fill that tank, but some will set their own tank so you have heat. Ask.
- Save heat while you wait. Turn the thermostat down a few degrees, close off unused rooms and don’t use propane for things that can wait, like a fireplace or pool heater.
- If money is the problem, call your local energy assistance office right away. Most states have crisis help for people who are out of fuel or about to run out. See help paying for propane.
- File a complaint with your state attorney general’s consumer protection office if a company breaks its contract.
Ran out completely? Turn off the gas at the tank and at your appliances, and don’t try to relight anything yourself. In many states, like Texas, the company must do a leak test before refilling an empty tank, which usually has a fee. That’s one more reason to order before you hit empty. If you ever smell gas, leave the house right away and call your propane company or 911 from outside.
What to do as a homeowner
If you’re buying a house with a propane tank, find out who owns it before closing. It’s the question that causes the most confusion later. If you already lease and you’re happy with the price and service, there’s no urgent reason to change. But if your price per gallon is well above what other companies quote, owning your tank is the one thing that gives you real bargaining power, because it lets you switch whenever you want.
On plans, I’d choose a budget plan if predictable payments matter most, and a pre-buy or cap only after comparing the locked price with today’s market price. Whatever you sign, read the fee list line by line. The price per gallon is only part of what you pay. — Nathan Brooks
Questions to ask before you sign anything
- What’s the price per gallon today, and is it the price on the day I order or the day you deliver?
- What fees can be added? (Delivery, small-fill, after-hours, weekend, tank rent, safety check, minimum-use and tank removal fees)
- Is there a minimum amount I must buy each year?
- Do you offer automatic delivery, and what happens if you let me run out?
- If I pre-buy and don’t use all the gallons, do I get a refund?
- How much notice do I need to give to cancel, and what does it cost to remove the tank?
Wisconsin’s consumer protection agency puts it simply: get everything in writing, and keep your receipts for at least a year.
Quick answers
Is it better to lease or own a propane tank?
Leasing is simpler and costs little upfront, but only the owner company can fill it. Owning lets you shop around for a lower price every year, but you pay for the tank, installation and upkeep. Owning usually makes sense if you use a lot of propane and plan to stay in the home for years.
Can another company fill my leased propane tank?
Usually not. Most companies won’t fill a tank owned by a competitor, and in some states, like North Carolina, it’s against the law. To switch, the new company sets its own tank and your old company removes theirs.
How do I switch propane companies if I lease my tank?
Check your contract for fees and notice, get written quotes, sign up with the new company and ask your old company to remove its tank and credit any propane left in it. Switching in spring or summer is easiest.
When is propane cheapest to buy?
Usually in late summer and early fall. Last winter, home propane prices rose between October and March in all six states we track.
What happens if I run out of propane?
Turn off the gas at the tank and appliances and call your company. In many states the company must do a leak test before refilling an empty tank, which usually has a fee.
Keep saving
Sources
Wisconsin DATCP: home propane buying tips · NC Department of Agriculture: LP-gas FAQ for consumers · Maine Governor’s Energy Office: Propane pricing guide · Maine Attorney General: home heating fuels · Minnesota Department of Commerce: propane · Railroad Commission of Texas: propane safety at home · EIA weekly residential propane prices
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