If you’re considering the use of propane as a heating fuel source for your home or business, you will need to install a tank to store the fuel reserves. Your choice essentially boils down to two options: an above ground or underground propane tank.

By evaluating several factors, you can determine which type is best for you and your property. Please note that it’s unsafe and often illegal to install a propane tank designed for above ground use under the ground. In any case, you should check to make sure your tank complies with all applicable EPA regulations and local zoning ordinances prior to installation.

Factors To Know Prior to Propane Installation


If you’re like most property owners, appearance is extremely important. Many view a propane tank as an unsightly eyesore that can reduce a property’s aesthetic and curb appeal. If you’re unable to install an above ground tank in a discreet location that is not easily seen, you might want to choose an underground model.


Cost is always a consideration when choosing between an above ground or underground propane tank. An underground tank requires the installation of additional protective equipment to prevent corrosion and possible groundwater contamination. When combined with the digging and backfilling involved with the site excavation, the total projected cost of an underground tank can be up to three times the cost of an above ground unit.


An above ground tank poses certain security risks that don’t exist with underground tanks. For instance, a highly visible above ground tank can be susceptible to vandalism, making it less desirable for property owners in high-crime areas. If your tank is located near a roadway or parking area, it can also be vulnerable to vehicle collisions.
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Underground tanks are better suited to handling extreme temperatures, particularly colder climates. Unlike above ground tanks, underground tanks are warmed by the earth, enabling them to continue to function at a high level even when the temperature dips well below zero.
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Floating Issues

There’s the possibility that an underground tank will float. This typically happens when the water level in the hole where the tank is buried rises above the level of the fuel inside the propane tank. Installing an underground tank on a concrete slab can minimize the floating risk. However, if you live in an area that is prone to flooding, an above ground tank may provide a better solution.


Above ground propane tanks are generally easier to maintain than underground units. Underground tanks contain an anti-corrosion component that must be inspected and tested on a regular basis, resulting in an additional cost to the owner. An improperly functioning anti-corrosion component will also need to be replaced.

Contact Foster Fuels to Learn More

Foster Fuels is a full-service propane heating fuel provider that has been in business since 1921. Contact us if you need help weighing your options regarding an above ground vs. underground propane tank installation.

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Post updated on May 18th, 2021