May 12, 2025

Above vs. Underground Oil Tank Installation

Understanding the pros and cons of each oil tank installation method can help homeowners and businesses make an informed choice that best suits their needs.

When it comes to installing oil tanks for home heating or commercial purposes, property owners face difficult with the decision making. They can’t decide whether to opt for an above-ground or underground installation. Both options come with distinct advantages and potential drawbacks, depending on factors like budget, space availability, environmental considerations, and local regulations. Understanding the pros and cons of each oil tank installation method can help homeowners and businesses make an informed choice that best suits their needs.

This article explores the key differences, benefits, and challenges of above-ground and underground oil tank installations.

Above-Ground Oil Tank Installation

An above-ground oil tank is installed either outside the property, typically in the backyard along the side of a building, or within a basement or utility room. These tanks are easily visible and accessible, making installation, inspection, and maintenance relatively straightforward. Here’s a breakdown of the pros and cons of above-ground oil tanks.

Pros of Above-Ground Oil Tanks:

Ease of Access and Maintenance 

Above-ground oil tanks are easy to access, which simplifies both installation and routine maintenance. If there’s a leak or other issue, it’s generally easier to spot and address quickly, reducing the risk of environmental damage. This also makes regular inspections more manageable, ensuring detection of potential issues can happen early before they become serious problems.

Lower Installation Costs 

One of the most significant advantages of above-ground tanks is that they are generally less expensive to install than underground tanks. Installation does not require extensive excavation, which can save property owners considerable time and money. The lack of digging also means the installation process is quicker, minimizing disruption to the property.

Environmental Protection

Because above-ground tanks are more accessible, leaks or spills can be detected faster, reducing the risk of contamination to the soil or groundwater. This is a crucial factor for environmentally conscious homeowners who want to minimize their impact on the environment.

Cons of Above-Ground Oil Tanks:

Aesthetic Concerns 

One of the main drawbacks of above-ground oil tanks is their visibility. These tanks can be large and unsightly, potentially detracting from the appearance of a property. Although some homeowners try to conceal the tanks with fencing or landscaping, they can still be an eyesore, especially in more visually sensitive areas.

Exposure to the Elements 

Above-ground tanks are exposed to the weather, which can cause wear and tear over time. Harsh conditions like rain, snow, and extreme temperatures can accelerate corrosion and cause damage if the tank is not adequately protected. While many above-ground tanks are designed to withstand the elements, they still require regular maintenance to ensure their longevity.

Underground Oil Tank Installation

Underground oil tanks are buried below the surface of the ground, usually in the yard. These tanks offer a hidden and unobtrusive solution for oil storage, but they come with their own set of challenges. Here’s an overview of the pros and cons of underground oil tank installation.

Pros of Underground Oil Tanks:

Aesthetic Appeal 

The most obvious benefit of underground oil tanks is that they are completely hidden from view. Since they are buried, there is no impact on the property’s aesthetics. This is a significant advantage for homeowners who value the appearance of their yard and don’t want the visual intrusion of a large, visible tank.

Space Efficiency

Underground tanks free up valuable space on the property. For those with smaller yards or limited outdoor space, an underground tank is an excellent option that maximizes available land for other uses, such as gardening, patios, or children’s play areas.

Cons of Underground Oil Tanks:

Higher Installation Costs 

Underground oil tanks are significantly more expensive to install than above-ground tanks due to the need for excavation. The installation process involves digging a large hole, preparing the site, and ensuring proper drainage and environmental protection. This can be a costly and time-consuming process, especially if there are unforeseen complications like buried utilities or rocky terrain.

Difficult Maintenance and Inspections 

Because underground tanks are not easily accessible, routine maintenance and inspections can be more challenging and expensive. Detecting leaks or corrosion can be more difficult, and any necessary repairs may require excavation, which further increases costs. Regular inspections are essential to ensure that the tank remains in good condition, but they can be more difficult to carry out than for above-ground tanks.

Environmental Risks 

If an underground tank develops a leak, it can go undetected for a long time, potentially leading to significant environmental damage. Leaks can contaminate the soil and groundwater, which can be difficult and expensive to clean up. This is a significant concern, as underground leaks can cause long-term damage to the property and surrounding areas, potentially leading to hefty fines and repair costs.

Conclusion

Both above-ground and underground oil tank installations offer unique advantages and challenges. Above-ground tanks are easier to install and maintain, tend to have a longer lifespan, and are more environmentally friendly in terms of leak detection. However, they may not be aesthetically pleasing and are exposed to the elements. 

Underground tanks, on the other hand, provide an unobtrusive solution, saving space and protecting the tank from weather, but they come with higher installation costs, more difficult maintenance, and greater environmental risks if a leak occurs.

When deciding between the two, consider factors such as budget, available space, aesthetic preferences, and the level of maintenance you’re willing to undertake. Consulting with a professional installer is essential to ensure that your choice meets all local regulations and safety standards.