Have an aging or leaky oil tank? Trust us, don’t wait to have a professional take a look and propose a solution—that’s a potentially expensive and dangerous mistake.
But you’re probably wondering how much it will cost you to either repair or replace an old oil tank, right?
Here’s our answer:
In the Connecticut area, it typically costs anywhere from $100 to $6,000 to either repair an aging oil tank or replace one altogether.
Of course, repairing an aging tank won’t always be an option for you. That said, we’ll help you better prepare for the possibility of completely replacing your oil tank by going over the top factors that affect oil tank replacement costs.
The 6 main factors that affect the cost of an oil tank replacement include:
How much oil you’d like to store
The location of the old tank
Whether or not your tank is leaking
Whether you choose a single vs double wall tank
Whether your oil line needs to be replaced
The contractor you choose for the job
To help you prepare for this project, we’ll give you a breakdown of each of the cost factors above.
Need an estimate for your oil tank replacement or repair?
If you’re in the Connecticut area, call Aiello. We’ve provided countless oil tank replacements over the last 89+ years and always provide you with a comprehensive in-home inspection along with several replacement options and fair quotes for each.
Cost factor #1: How much oil you’d like to store
The more gallons of oil you would like to store, the cost will increase if you need multiple tanks.
Oil storage tanks are sized by how many gallons of oil the tank can hold. Residential oil tanks come in a wide variety of sizes but the most common size is 275 gallons. If a larger size is needed, two 275-gallon tanks are typically paired up to accommodate 550 gallons.
So which size should you go with? Typically, a 275-gallon tank is sufficient for smaller homes (1-3 bedrooms). However, a 500-gallon tank might be a better option for a larger home (3-5 bedrooms).The size of tank you should go with also depends on how efficient your heating system and water heater are.
Not sure what size you need for your home? You should speak to a highly trained oil tank replacement contractor for advice on this decision.
At Aiello, we help homeowners calculate the tank size that works best for their home. This decision is important as it will determine how often you will need to order oil and have your tank refilled.
Cost factor #2: The location of the old tank
Most oil tanks in the Connecticut area are located inside, in a basement but some are located outside above or below the ground. Typically, it costs more to replace and remove an oil tank that is outside and buried underground.
Replacing an underground storage tank (also referred to as a UST) will require excavation and digging. This additional work, which isn’t required for an aboveground tank, increases the time, labor and machinery associated with completing the job.
Note: If you currently have an underground tank, we will almost always suggest removing the underground tank and replacing it with an aboveground tank. That’s because underground tanks are highly susceptible to corrosion and leaking.
Cost factor #3: Whether or not your tank is leaking
If your oil tank is leaking, depending on the amount of oil leaked, you could pay quite a bit in cleanup costs, also referred to as “remediation” costs. In Connecticut, oil leaks in basements are common as this is where most oil storage tanks are installed.
Unfortunately, if an entire tank leaks in a basement, it could cause thousands of dollars in damage and, in most cases, homeowners insurance won’t pay for oil leak remediation costs.
The cost of an oil spill depends on the severity of the leak. Homeowners may be able to clean up smaller spills (less than a gallon). However, any spill that leaks more than a gallon of oil will require professional remediation.
Cost factor #4: Single-wall vs double-wall tank
Homeowners have the option of installing either a single-wall or double-wall tank. Double-wall tanks cost more upfront than single-wall oil tanks but they last longer and provide much better protection against rusting and leaking.
Most double-wall oil tanks are composed of an inner polyethylene tank surrounded by a steel outer tank. This second steel wall/lining helps contain any potential leaks from the inner tank. Double-walled oil tanks can last upwards of 20 years. Depending on the manufacturer, some double-walled oil tanks are even protected by a manufacturer’s warranty for up to 30 years.
Single-wall oil tanks, on the other hand, do not have this extra layer of protection against leaks. However, in normal working conditions, an aboveground single-wall oil tank can last up to 15+ years and is a good, cost-effective option for homeowners on a budget but should expect to replace it more often than a double wall option.
Cost factor #5: Whether your oil line needs to be replaced
All oil storage tanks have an oil line that carries oil from the tank to the furnace. If your oil line is buried underground and/or encased in concrete, it will need to be upgraded, which will add to the overall cost of the project.
Most older homes in Connecticut have oil lines that were buried underground/in concrete and made of brass, copper, iron or steel. These lines are no longer up to code and need to be replaced because they are at a high risk of corroding or cracking, resulting in expensive oil leaks.
Older oil lines buried underground should be replaced with flexible oil lines covered in a non-metallic sleeve. These lines should either run along the floor or overhead.
While most companies skip this step, Aiello’s team will always inspect the oil line and replace it if needed. This ensures that your oil line is up to code, does not inhibit the ability to be approved for a permit and helps prevent future oil leaks.
Cost factor #6: The contractor you choose for the job
This is often the most important factor to consider when you’re preparing to replace your oil tank. The contractor you choose has a lot to do with both the upfront and ongoing costs of your oil tank and heating system.
Higher-quality oil tank replacement contractors typically charge more. That said, you get what you pay for. If you choose a high-quality, experienced contractor, you can also expect a longer-lasting tank, less repairs, lower risk of leaks and lease heating system breakdowns & better oil efficiency due to no sludge build up in the tank (i.e. lower heating costs throughout the winter). Over the course of the tank’s lifespan, a high quality installation can save you thousands.
Not sure where to start to find a high-quality oil tank replacement contractor? We suggest the following tips:
Make sure the contractor has at least 10 years of experience replacing oil tanks
Make sure the contractor is licensed and insured to replace oil tanks in the state of Connecticut
Check the contractor’s reviews on sites like Google (beware contractors with not many reviews)
Make sure the contractor provides multiple oil tank replacement options and upfront pricing & guarentees in writing
Need a reliable oil tank replacement contractor? Just say “Hello, Aiello”
Aiello Home Services has been providing long-lasting and high-quality oil tank replacements to Connecticut homeowners for more than 90 years. We’re committed to making sure that you get the right tank for your needs. In fact, we always offer multiple tank replacement options and take the time to walk you through each option.
Plus, our oil tank replacement quotes come with free estimates, flexible financing options if requested and up to 30-year manufacturer tank warranties.