500 Gallon Propane Tank – Uses, Benefits, and Availability

So you’ve decided to ditch the electric heat system and go with the cleaner, more efficient alternative: propane. One of the first things you’ll need to know when making the switch is: what about propane tanks? What propane tank sizes are available and what size will I need to meet my propane supply needs?

First, what is a propane tank and why do you need one? A propane tank is a storage container where the propane you’ll need for your heating system or other gas-powered appliances is kept. Storage tanks are generally designed to hold a month’s worth of propane, so tank sizes vary depending on the size of one’s home and one’s monthly propane usage.

Propane tanks come in a variety of sizes; more common ones include the 120-, 250-, 330-, and 500-gallon tanks. They come in horizontal or vertical configurations, though many of the sizes over 120 gallons are available only in horizontal forms. Above- and below ground, installation can be chosen.

A 500-gallon horizontal propane tank is best for smaller homes that rely on propane gas to power entire home heating systems or various appliances, such as stoves, water heaters, fireplaces, and even outdoor lighting. The most common of residential propane tanks, the 500-gallon unit is recommended for homes at least 2,500 square feet.

Read on to get more details about the uses and benefits of a 500-gallon propane storage tank and decide if this is the best choice for your home and propane needs.


As discussed, the use of a 500-gallon horizontal propane tank is to store the propane needed to power one’s home. This tank size is also used by many small commercial businesses that rely on propane for heating, lighting, alternate heating, and hot water; commercial cooking establishments might turn to propane to power their stoves. The 500-gallon tank can also be utilized for agricultural purposes, such as for tobacco curing, dry cleaning, or peanut drying.

If your home has a central heating system, the 500-gallon horizontal propane tank is most commonly recommended. When filled to 80 percent (accounting for expansion, propane tanks are only filled 80 percent), the 500-gallon tank holds 400 gallons of propane.

Basically, you will need to calculate how much propane you will use on a monthly basis when determining the required tank size. If you’re running a furnace, fireplace, hot water heater, clothes dryer, and possibly more, you’ll likely go with the 500-gallon tank.

Recommended Locations

Your propane storage tank is required to be ten feet from the propane line and a minimum of ten feet from a home or building.

Both above- and underground installation options are available for the 500-gallon horizontal propane tank. To meet strict regulatory guidelines, it is recommended that homeowners and business owners utilize licensed technicians from a propane supply company to handle the installation of a storage tank, particularly for underground models.

Wherever a tank is installed, it should always be easily accessible for propane delivery trucks. Locked fences, too much shrubbery, and a blocked driveway are all obstacles that make it difficult or even impossible for delivery drivers to complete a propane delivery.


Perhaps the top benefit of choosing a 500-gallon propane storage tank is savings: by choosing a larger tank, you’ll be able to accept delivery of more propane in one trip. A lower price rate for buying propane in a large quantity could apply, saving you money over the course of a year.

With this tank size, you’re also assured of having the amount of propane you need between deliveries, so there’s much less of a chance you’ll run out when you need your propane supply most. It’s not fun to run out of your power supply for your home heating system in the middle of the night during a bone-chilling cold spell.

The horizontal configuration also works well if you choose to have the tank installed aboveground; the lower unit could be more inconspicuous than a vertical tank.

Available from Diversified Energy

Are you an East Coast resident living in NC or in the Mount Joy, PA, vicinity? Also serving parts of VA and SC, Diversified Energy is a great choice when it comes to propane delivery and tank leasing or purchase as well as installation. The company, the 31st largest propane supply company in the U.S., serves more than 25,000 satisfied customers from its nine service centers located in North Carolina and Pennsylvania.

You can buy a 500-gallon horizontal propane tank from Diversified Energy. And the company offers highly trained, licensed technicians to handle your tank’s installation, whether it be above- or underground. Rest assured all requirements and regulations will be adhered to for your installation.

Contact a Diversified service center to talk with a representative about your desired propane systems, projected usage, and tank options and leave it to the professionals to get you started on your propane-powered future.