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Oil Boiler Cost To Replace: What are the Average Costs and Options?

Oil boiler cost Compare Boiler Quotes

You may be one of the 2 million homes in the U.K. which is not connected to a gas grid. If so, you may be using a pellet boiler, or an oil boiler to provide your home heating and hot water.

Oil boilers are one of the most common types of boiler in the UK and the second most popular type of home heating in the UK. But what is the oil boiler cost to replace?

If your oil boiler is broken or older than 15 years, no matter what type of boiler you have, you can save money by upgrading to a new energy-efficient boiler.

A new, modern boiler can reduce your annual energy bill by up to 50% and heating costs are one of the biggest expenses in any modern household, especially if you are using an old oil boiler.

You will certainly know what we mean when we say that the shock of an oil price increase on your heating costs can be quite stressful.

Therefore, it is crucial to ensure that you get the best deal on a new boiler. This way you can at least start to earn some of that money back through the increased efficiency.

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How much is an oil boiler in 2021?

Oil boiler cost Compare Boiler Quotes

The average cost of an oil boiler or specifically an off the gas grid oil boiler varies.

This changes depending on the manufacturer but we hope to offer some guidelines which will steer you in the right direction.

New, efficient, high-efficiency boilers will cost around £1,500 in the UK for a lower to mid-range model.

The cost of hiring a heating engineer to install your new boiler can range from 800 to as high as £1500, depending on how easy it is and what optional extras you choose or need. 

In comparison, the average cost of installing a new combi boiler in the UK is around £500 to £1,000. This is true for a more straightforward installation that would simply involve replacing your existing boiler with the new model and using the existing gas and water pipes. 

If you’re doing a full new system, the replacement of central heating, including the redirection of the radiator and water pipes, could easily exceed £3000. 

Having said this, as we have discussed, a new boiler can pay for itself in just 4 years, saving up to £600 on your annual heating bill. 

Also note, that although the upfront costs seem high, factoring it into the cost of a new build home or renovation can sometimes be made up elsewhere.

In addition to this, some local heating providers offer you the option of paying for your new oil boiler on a monthly basis, with payments spread over your budget so you can soften the blow. 

The table below allows you to compare the cost of a new oil boiler and/or its replacement, including VAT and without the cost of installation. This is an average manufacturer price based on all their oil boilers as of July 2020.

ManufacturerAverage EfficiencyAverage Cost
Worcester BoschA£1,600

Costs for Home Heating with an Oil Boiler

Oil boiler cost Compare Boiler Quotes

Traditionally, an oil boiler is more expensive to operate and heat than a gas boiler, however, it is cheaper than an LPG or electric boiler.

The total annual cost for oil comes in around £1000 which equals about 6p / kW. 

Note: As oil boilers are usually more expensive than gas boilers, we recommend that you always consult a qualified heating engineer who will help you find the right boiler for your needs. 

Because of the higher costs for oil boiler replacement, it is crucial to ensure that you get the best deal on a newer boiler. This way you can earn some of that money back. 

Further Tips on Oil Boiler Replacement:

Since most new boilers for a family home-sized system cost between £1500 and £3,500 in the UK, it is important to be aware of the factors that go into installing and maintaining a boiler as well as the aforementioned running costs.

In most cases, the main cost will be the cost of the new boiler itself, not the installation of the system. 

The main thing to remember is that the output has to be just right so you certainly need a gas safe engineer to come and assess your home for its usage requirements before you buy a new oil boiler replacement.

If it is too small, you will not have enough hot water, and if it is too high, it uses more energy than you need and becomes far too expensive to run. 

Also, as they age, oil boilers become less efficient at heating the house and are more likely to break down.

Replacing it with a new oil boiler is the best solution to all these problems, but the system will not achieve the same efficiency in heating the house or providing hot water if it is old and not properly maintained. 

Oil boilers are more efficient because the units are made up of water tanks and storage cylinders that traditional boilers require separately.

In the league table of boiler systems, the best combi boilers that are A-Rated are much more efficient than conventional oil boiler systems, but not as efficient as the best electric boilers on the market for small homes. 

What effects the costs?

Oil boiler cost Compare Boiler Quotes

Oil Boilers are not only a more convenient system for many homeowners, but it also means that energy consumption is kept to a minimum by constant hot water storage. 

If you do not want to buy the boiler separately, the installer can tell you the price for installation and provide a suitable boiler for your home.

Note as well, that the cost of a new boiler can vary considerably depending on where you live, how much work is required and how much time is needed to get the job done. 

Don’t look at the price as compared with replacing a conventional boiler such as a Combi, which can be done in a day in most cases whereas an oil boiler can typically take 2-3 days depending on the size of the boiler and location.

Other types such as electric and regular boilers can also be done in less than a day depending on how much piping is required. 

Oil boiler costs: Final Conclusion:

When finding an oil boiler replacement look at one of the top manufacturers such as Grant and Firebird oil boilers as they have some of the most reliable systems on the market. Viessmann also offers a fantastic oil boiler and are our recommended boiler partner.

You can get a new boiler quote with our boiler quote calculator and also get a fantastic boiler cover to protect you against the most common breakdowns. 

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