How Much Does Oil Tank Replacement Cost?
Oil tanks store the fuel households need to power their HVAC systems. They serve as the main resource for the comforting heating we need to get through the coldest winters. Depending on where you live, your oil tank may be one of the most important fixtures on your property.
Although oil tanks are remarkably durable, replacing them will be necessary eventually. You need to be prepared for that because it will be a major expense. We’re talking about an expense that is going to cost thousands of dollars.
On average, oil tank replacement costs $3,200. The purchase of a replacement oil tank will cost about $1,500. Expect to pay $1,000 in labor costs to remove your old oil tank and $700 to install the new one. If oil leaks are found, the cost to remove the contamination is at least $10,000.
The oil tank on your property plays a huge role in maintaining your family’s comfort level throughout that year. You cannot afford to go for a prolonged period without a functional oil tank serving your household. Learn more about all the expenses that go into replacing an old oil tank by continuing with this article.
How Often Should I Replace My Oil Tank?
The expected lifespan for an average residential oil tank goes is in the range of 15 to 20 years. Whether or not your oil tank will last for that long will depend on how well you care for it.
Follow all the recommended maintenance measures to keep your oil tank in good condition. That’s the most effective way of prolonging your oil tank’s lifespan.
Homeowners are also urged to check their tanks regularly. When performing the inspection yourself, search for any cracks or other signs of damage.
You should also get the oil tank professionally inspected regularly. They can spot signs of trouble that may elude the eyes of untrained individuals.
Replacement by Size of Oil Tank
|Oil Tank Size
|275-Gallon Oil Tank
|300-Gallon Oil Tank
|330-Gallon Oil Tank
Labor Cost to Replace an Oil Tank
When the time comes for you to finally replace your oil tank, you will need to worry about two different expenses. First off, you have to consider how much your new oil tank is going to cost. As noted above, a 275-gallon tank will cost $1,500 and prices climb as the size of the tank increases.
Notably, the tank is likely not going to be your largest expense. Labor costs will often make up a larger percentage of the overall project’s price tag. Homeowners have to prepare for a $1,700 expense if they want to replace their old oil tank.
Factors That Affect Replacement Cost
Why is the labor cost for replacing an oil tank so expensive? The short answer is because it takes a lot of skilled labor. There are several things that the workers need to do throughout the project.
First off, they will have to work on removing the tank. The contractor you hire will charge $1,000 for the removal of the existing oil tank. $1,000 is not a fixed price point, however. For instance, the price will change depending on how big the old tank is. Generally speaking, removal costs increase along with the size of the oil tank.
Another factor to consider is the current placement of the fixture. Above-ground oil tanks are the least expensive to remove and they’re followed by tanks installed in the basement. If you need an underground tank removed, that will cost you a pretty penny.
Let’s not forget about the actual cost of installing your new oil tank. This part of the project will cost $700. Once again, $700 is not a fixed price point. Your choice of location for the oil tank is going to affect the installation cost. Underground installations cost the most, basement installations come second, and above-ground installations are the most affordable.
Lastly, your current location will affect the cost of the replacement. Even within a single state, prices will vary depending on which contractors are located nearby.
Oil Tank Replacement Cost by State
Potential Costs of Not Replacing Your Oil Tank
When an oil tank reaches the point where it becomes more susceptible to damage, you need to seriously consider replacing it. You may be thinking of putting off replacement for another year. That’s certainly an option, but you must understand that doing so carries a considerable amount of risk.
The biggest potential issue that could arise if you continue using an old tank is leakage. Leaking is not that big of an issue if you have an above-ground tank. Cleaning up the oil should be manageable and you can still repair the tank.
Underground tanks are different because they leak oil directly into their surroundings. When they leak, replacement becomes immediately necessary and you’ll also be tasked up with cleaning up the soil.
Cleaning the mess caused by your leaking oil tank will cost $11,000. You may also have to pay that amount yourself because your homeowner’s insurance may not cover that issue.
By the way, you also have to remember that your fuel costs will increase if the tank is leaking. You’re wasting money at that point because you’re paying for fuel that your household is unable to use.
Oil Tank Disposal Cost
Similar to installing and removing an oil tank, different factors will affect how much the job will cost. For instance, there is the base cost of disposing of the old oil tank. Expect to be charged $250 if you need your old tank properly disposed of.
Now, the $250 price tag applies if there’s an appropriate disposal site for the tank located relatively close to your home. If the workers need to go for a long trip to dispose of your tank, they will charge more. You could be looking at a fee of $350 if you need the tank disposed of.
In addition to the cost of transporting the tank, the workers also have to do something about its contents. Your tank may not have been empty when you had it removed and that oil has to go somewhere. Homeowners may have to pay an additional $2 per gallon of unused oil that remains in their soon-to-be discarded tank.
How Much Does It Cost to Fix a Leaking Oil Tank?
The first step of repairing a leaking oil tank is identifying the position of the leak, which will cost $500. Professionals will usually need to run a test to do exactly that.After the leak is spotted, repairs can be administered. If the leak is caused by some components, those will have to be replaced. Replacing components such as filters and pipes will cost $150.Also, remember that fixing a leak is not an option if your tank is buried in the ground. Your only option in that scenario is to replace the tank. Leaking can be a nightmarish problem for oil tanks. It’s also a problem that must be addressed immediately.
How Much Does It Cost to Replace a 275-Gallon Oil Tank?
Homeowners will have to pay $3,200 if they want to replace an aging 275-gallon tank. $3,200 is likely going to be the final cost of oil tank replacement for you too. That’s because a 275-gallon oil tank is usually big enough for the average household.Opt for anything larger than a 275-gallon tank and you’re looking at increased installation costs. Down the line, you will also have to worry about the cost of removing and disposing of your larger oil tank. Unless there’s a huge demand for heating in your household, sticking to the 275-gallon tank should be fine.
How Much Does a 250-Gallon Oil Tank Cost?
250-gallon oil tanks are reasonably priced at $1,300. They are also cheaper to install because of their size so you can save money on that end as well.
Gary Evans is passionate about home improvement. He loves finding out how to make improvements in the easiest, most practical, and most affordable ways. Upgrading his home kitchen is one of his ongoing hobbies. Gary is also a long-time content creator and enjoys spending his free time tending to his hydroponic vegetable garden.
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