3 Things You Need To Know to Be a Smart Propane Consumer
If you lease your propane tank from a propane supplier, there are a few extra hoops to jump through when you want to switch propane companies. This can be easy if companies cooperate. Or it can get frustrating if the companies don’t cooperate.
Here’s what you need to know if you lease your propane tank and want to switch companies
1. The company that owns the tank will take the tank back
This is a standard practice in the propane gas industry. But many consumers are caught off guard when their propane tank is taken away.
Make sure you schedule the time that the tank will be removed from your property so you can schedule an installation with the new company. This way, you avoid any interruption in service that inconveniences you.
2. There will be extra fees involved
When you cut your contract with a propane company, there are usually costs associated. If the company is removing their tank from your property, these costs may include:
- Termination fee – usually around $100
- Propane tank pump out fee – tanks can’t be removed if they are above 5% capacity. The company will charge you a pump out fee to remove the extra propane. Check the price per gallon the company offers to buy back your propane.
- Propane pick up fee – this can range from $25-100
* Note – not all companies will charge these fees. These are just common industry fees to ask your propane company about.
3. You might be able to purchase the tank from the old company (and resell it to your new company)
Before you go through the hassle of uninstalling and reinstalling the propane tank from your property, ask the propane company if you can purchase the propane tank from them. Then, offer to sell it to the new company that you choose. Or you can choose to own your tank, although leasing the tank is often more cost effective.
While this practice is not common, we have seen some companies cooperate with this.
This approach is especially convenient if you have an underground propane tank. That way, you won’t need to have your yard excavated.
Be informed when you switch propane companies
Switching propane companies is a minor inconvenience, but it helps to be informed about propane industry practices so you can be a smart consumer!