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Cost of New Oil Boiler: Invest in Efficiency with Our Revealing Guide

Are you considering investing in a new oil boiler for your home? Installing a new boiler can be a significant expense, but it’s a worthwhile investment in the long run.

Oil is a popular choice for many households in the UK, providing efficient heating and hot water.

This comprehensive guide will explore the cost of new oil boilers, including installation, running costs, and benefits. By the end, you’ll understand the expenses involved and why upgrading to an oil boiler is smart.

A person looking at different types of boilers - A price tag next to an oil boiler, indicating oil boiler prices.

1. Introduction to Oil Boilers

Oil boilers are a popular choice for homeowners in the UK who are not connected to the gas grid. They provide efficient heating and water, making them an excellent alternative to gas boilers.

Approximately 6% of UK households use oil boilers for central heating systems. These boilers are particularly common in rural and remote areas with limited access to the gas grid.

With an oil boiler, you can enjoy a reliable and consistent heat and water supply throughout the year.

Oil boilers are known for their efficiency, and modern models are designed to maximize energy savings. Upgrading to a new oil boiler can reduce bills and decrease carbon footprint.

A professional technician installing a new oil boiler, illustrating the oil boiler replacement process

2. Factors Affecting the Cost of Oil Boilers

The cost of installing an oil boiler can vary depending on several factors. Understanding these factors will help you estimate the expenses and make an informed decision about your investment.

Size of Property

The size of your property plays a crucial role in determining the size and output of the oil boiler you need.

Larger properties with more rooms and radiators will require a more powerful boiler to meet the heating and water demands.

On the other hand, smaller properties will require a smaller boiler. The size of the boiler will impact the overall cost, with larger boilers generally being more expensive.

A breakdown of costs related to oil boiler installation, including labour and materials

Type of Boiler

Different types of oil boilers are available, including combo boilers, system-type boilers, and conventional boilers.

Each type has its own features and benefits, and the cost can vary accordingly. Combo boilers are compact and provide heating and water on demand.

System-type boilers store water in a cylinder, making them suitable for larger households. Conventional boilers use a cold water tank and a water cylinder.

The type of boiler you choose will affect the cost of installation.

Number of Radiators

The number of radiators in your property also influences the size and output of the oil boiler. A higher number of radiators will require a more powerful boiler to ensure efficient heating throughout the property.

The new boiler installation cost will increase with the number of radiators it needs to support.


The location of your property can impact the cost of installing an oil boiler. Areas with higher living costs, such as London and the southeast, may have higher installation costs.

In contrast, remote and rural areas may require additional charges for installation due to accessibility issues.

The location will also determine the availability and cost of oil supply in your area.

3. Types of Oil Boilers

Before diving into the cost of installing an oil boiler, it’s essential to understand the different types available.

Each type has its own features and benefits, catering to different household needs. Let’s explore the three main types of oil boilers.

Combination Oil Boilers

Also known as combi boilers, they are a popular choice for smaller households.

These boilers provide heating and water on demand, eliminating the need for a separate water cylinder or storage tank.

Combi boilers are compact and space-saving, making them suitable for properties with limited space. They are energy-efficient and offer fast water delivery.

However, they may not be suitable for larger households with high water demands.

System Oil Boilers

System oil boilers work with a hot water cylinder to store and deliver throughout the property.

They are suitable for larger households with higher water demands. System style boilers are more efficient than conventional boilers as they eliminate the need for a cold water tank in the loft.

They provide a constant supply of water to multiple outlets simultaneously.

Conventional Oil Boilers

Conventional boilers, also known as heat-only or regular boilers, require a separate water cylinder and a cold water storage tank.

These boilers are suitable for properties with older heating systems and multiple bathrooms. Conventional boilers are often found in traditional properties and provide a reliable and efficient heating solution.

However, they require more space for installation and may not be as energy-efficient as new combi boilers or system boilers.

4. Cost of Installing an Oil Boiler

Now that we understand boilers well and their types, let’s explore the cost of installing a new oil boiler.

The cost can vary depending on multiple factors, including the property size, type of boiler, and additional requirements.

By understanding the installation costs, you can budget effectively and make an informed decision.

Oil Boiler Installation Costs

The installation costs of an oil boiler can range from £1,500 to £6,500, depending on various factors.

The size of the property and the type of boiler you choose will impact the overall cost.

Larger properties with more radiators require a more powerful boiler, increasing the installation cost.

Likewise, the type of boiler you choose, such as a combi boiler, system, or conventional boiler, will affect the installation cost.

To give you an idea of the installation costs, let’s look at some estimates:

Size of Property Boiler Size Estimated Unit Cost Estimated Installation Cost Estimated Total Cost (Including Installation)

Boiler Costs: A Comprehensive Guide Based on Property Size

Size of Property Boiler Size Estimated Unit Cost Estimated Installation Cost Estimated Total Cost (Including Installation)
Small 24kW to 27kW £1,200 to £3,500 £500 to £2,000 £1,700 to £5,500
Medium 28kW to 34kW £1,800 to £2,700 £500 to £2,000 £2,300 to £4,700
Large 35kW to 42kW £1,500 to £4,500 £500 to £2,000 £2,000 to £6,500

Now, what does this all mean? The chart tells you that if you’ve got a small pad, you’ll probably need a boiler between 24kW and 27kW. The unit will set you back between £1,200 and £3,500, but don’t forget the installation costs! Add another £500 to £2,000 for that. You’re looking at an outlay of £1,700 to £5,500.

Got a bit more room to heat up? Then, bump it up to a medium-sized boiler. You’ll need more oomph in your heating game, so 28kW to 34kW should do the trick. What is the total estimated cost for that cosy warmth? Anywhere from £2,300 to £4,700.

Living large? You’ll need a boiler that can keep up. That’s where the 35kW to 42kW range comes in. Just be ready to part with £2,000 to £6,500 to keep your mansion toasty.

Supply Costs

In addition to the installation costs, you will also need to consider the supply costs of the oil boiler itself. The supply costs will depend on the boiler’s type, size, and manufacturer.

The average supply cost ranges from £1,300 to £4,000 for combination boilers. System and conventional boilers have an average supply cost of £1,000 to £3,500.

These estimates can vary based on your specific requirements and the chosen brand.

A technician performing a boiler replacement, emphasising the importance of boiler replacement. Lady hold up a current bill to discuss.

Additional Costs

When budgeting for your oil boiler installation, it’s essential to consider any additional costs that may arise. These additional costs can include:

  • Flue Installation: Depending on the location and layout of your property, you may need to install a flue for your oil boiler. The flue installation cost can vary, so factoring this into your budget is important.
  • Upgrading Radiators: If your current radiators are old or inefficient, you may consider upgrading them when installing a new oil boiler. Upgrading your radiators can improve the overall efficiency of your heating system, but it will come with additional costs.
  • Oil Storage Tank: If you do not already have an oil storage tank, install one. The cost of an oil storage tank can vary depending on the size and material.
  • Choosing a reputable installer for the tank installation is crucial to ensure compliance with regulations and safety standards.
  • Power Flushing: Before installing a new boiler, it is recommended to power flush your central heating system. Power flushing removes any sludge and debris from the system, improving its efficiency and performance.The cost of power flushing can vary depending on your system’s size and location.
  • Additional Pipework: Depending on your property’s layout and the oil boiler’s location, you may require additional pipework for installation. The cost of additional pipework will depend on the complexity of the installation and the distance to the oil storage tank.

It’s important to discuss these additional costs with your installer and obtain detailed quotes to ensure you have a comprehensive understanding of the total expenses involved.

5. Running Costs of Oil Boilers

While the upfront cost of installing an oil boiler may seem significant, it’s essential to consider the long-term costs. Oil boilers are known for their efficiency and can help you save money on your energy bills.

Various factors, including oil price, oil boiler cost, efficiency, and insulation in your property, influence oil boilers’ running costs.

The price of oil can fluctuate, so it’s important to monitor oil prices and budget accordingly. Boiler efficiency is another crucial factor.

Modern boilers are highly efficient and can have efficiency ratings of over 90%. Choosing a high-efficiency conventional oil boiler will help you reduce your energy consumption and lower your running costs.

Additionally, the insulation in your property plays a significant role in the running costs of your oil boiler. Well-insulated homes retain heat better, reducing the energy required to maintain a comfortable temperature.

Insulating your property can positively impact your running costs and overall energy efficiency.

6. Benefits of Upgrading to an Oil Boiler

Investing in a new oil boiler offers several benefits for homeowners. Let’s explore some of the key advantages of upgrading to an oil boiler:

  • Energy Efficiency: Modern boilers are highly efficient, helping you reduce your energy consumption and lower your carbon footprint. High-efficiency boilers maximize heat transfer and minimize heat loss, increasing energy savings.
  • Reliable Heating and Hot Water: These boilers provide a reliable heating and hot water supply throughout the year. You can enjoy a consistent and comfortable living environment, even during the coldest months.
  • Flexible Installation: Installed in various locations, including utility rooms, garages, or sheds. They are suitable for both small and large properties, providing flexibility regarding installation options.
  • Compatibility with Existing Systems: If you already have an oil heating system, upgrading to a new oil boiler is straightforward. The new boiler can work seamlessly with your existing oil supply and heating setup.
  • Long Lifespan: Built to last, with an average lifespan of 15-20 years. Investing in a new oil boiler allows you to enjoy reliable heating and hot water for many years.
  • Increased Property Value: Installing a new oil boiler can enhance the value of your property. Potential buyers will appreciate the energy efficiency and reliable heating system, making your home more attractive.

7. Oil Boiler Installation Process

Installing an oil boiler involves several steps to ensure a safe and efficient setup. Here is a general overview of the oil boiler installation process:

  1. Assessment: A professional heating engineer will assess your property and discuss your heating and hot water requirements. They will recommend the appropriate oil boiler size and type based on your needs.
  2. Removal of Old Boiler: If you have an existing boiler, it will be removed to make way for the new oil boiler. The removal process will be carried out safely, following industry guidelines.
  3. Preparation: The installation area will be prepared, including ensuring proper ventilation and access for the oil boiler. Any necessary pipework and connections will be installed.
  4. Oil Storage Tank Installation: If you do not already have an oil storage tank, it will be installed in a suitable location, adhering to safety regulations and guidelines. The tank will be connected to the oil boiler using appropriate pipework.
  5. Boiler Installation: The new boiler will be carefully installed, connecting it to the heating system and hot water supply.A qualified and registered heating engineer will carry out the installation to ensure compliance with regulations.
  6. Testing and Commissioning: Once the installation is complete, the heating engineer will test the system to ensure it operates correctly. They will check for leaks, ensure controls properly, and test the hot water supply.
  7. Commissioning Certification: After successful testing, the heating engineer will provide you with a commissioning certificate, confirming that the installation meets safety and regulatory requirements.
  8. User Instructions: The heating engineer will provide instructions for operating and maintaining your new oil boiler. They will explain any specific features or controls and answer any questions.

It’s important to hire a qualified and registered heating engineer for the installation process to ensure compliance with safety and industry standards.

8. Finding and Hiring Oil Boiler Installers

Finding a reputable and experienced installer is crucial when installing an oil boiler. Here are some tips to help you find and hire the right oil boiler installer:

Research and Recommendations

Conduct research and gather recommendations from friends, family, or trusted sources. Look for installers specialising in oil boilers with a proven track record of successful installations.

Check Credentials

Ensure the installer is registered with relevant industry bodies, such as Gas Safe or OFTEC. Registration assures that the installer has the necessary skills and qualifications to carry out the installation safely and efficiently.

Obtain Multiple Quotes

Request quotes from multiple installers to compare prices and services. Be sure to provide accurate information about your property and requirements to receive accurate quotes.

Ask for References

Ask the installer for references or testimonials from previous customers. This will give you an idea of their quality of work and customer satisfaction.

Check Insurance Coverage

Verify that the installer has adequate coverage, including public liability insurance. This will protect you and your property in the event of any unforeseen damages or accidents during the installation.

Written Contract

Once you have chosen an installer, ensure you have a written contract outlining the scope of work, timelines, and payment terms. This will protect both parties and provide clarity on the expectations.

By following these steps and conducting thorough research, you can find a reliable and skilled oil boiler installer for your project.

A visual comparison of different oil combi boiler designs,

9. Oil Boiler Maintenance and Warranty

Regular maintenance is essential to ensure optimal performance and longevity of your oil boiler. Here are some maintenance tips to keep your oil boiler in top condition:

Annual Servicing

Schedule an annual service for your oil boiler to identify potential issues and ensure it operates efficiently. A qualified heating engineer can thoroughly inspect the boiler and make any necessary adjustments.

Monitor Oil Levels

Regularly check the oil levels in your storage tank to ensure an adequate supply. Running out of oil can cause damage to your boiler and disrupt your heating and hot water supply.

Bleed Radiators

If you notice cold spots or uneven heating in your radiators, it may be necessary to bleed them. Bleeding removes trapped air, allowing the radiators to heat up evenly.

Keep the Surrounding Area Clear

Ensure the area around your oil boiler is clear of obstructions or flammable materials. This will allow for proper ventilation and reduce the risk of accidents.

Follow the Manufacturer’s Instructions

Always refer to the manufacturer’s instructions for specific maintenance recommendations for your oil boiler. These instructions will guide cleaning, troubleshooting, and other essential maintenance tasks.

Additionally, it’s essential to check the warranty provided by the manufacturer or installer. A warranty can cover repairs or replacements in case of faults or defects. Be sure to understand the terms and conditions of the warranty and keep any necessary documentation safe.

1: Why should I consider a new boiler for my home?

Investing in a new boiler is wise for energy-efficient heating and hot water. It can lead to reduced energy costs, a smaller carbon footprint, and consistent warmth, especially if your home isn’t connected to the UK gas grid.

2: How standard are these boilers in the UK?

Around 6% of UK households use oil boilers, primarily in rural and remote areas without access to the gas grid.

3: What factors influence the cost of oil boiler installation?

Several factors impact installation costs, including property size, boiler type, radiator count, and location, particularly if you’re in a higher-cost area.

4: Could you explain the different types of boilers and their advantages?

Certainly! Three main types are combi boilers, system boilers, and conventional boilers. Each has its perks, catering to varying household needs. Combi boilers are compact, system boilers are suitable for larger households, and conventional boilers are often found in traditional homes.

5: What budget should I allocate for installing a new oil and gas boiler?

Installation costs can range from £1,500 to £6,500, depending on factors like property size and boiler type. Obtaining quotes from professional installers for an accurate estimate tailored to your requirements is crucial.

6: What should I consider when hiring an oil boiler installer?

When selecting an installer, verify their credentials, gather multiple quotes, request references, confirm insurance coverage, and establish a written contract detailing the scope of work and payment terms.

7: What maintenance tips can help me keep my oil boiler running efficiently?

Regular maintenance is essential. Schedule an annual service, monitor oil levels, bleed radiators as needed, ensure clear space around the boiler, and follow the manufacturer’s maintenance guidelines.

8: What advantages does upgrading an oil-fired boiler to a new oil boiler offer homeowners?

Upgrading to a new boiler delivers benefits such as energy efficiency, dependable heating and hot water, installation flexibility, compatibility with existing systems, a long lifespan, increased property value, and long-term cost savings.

9: What are the typical costs of an oil boiler?

Costs for an oil boiler can vary depending on factors like boiler efficiency, oil prices, and the size of your property.

On average, the annual costs of an oil boiler can range from £500 to £1,500. It’s essential to consider regular maintenance and insulation to improve efficiency and reduce running expenses.

10: How much does it cost to install an oil boiler?

The cost of installing an oil boiler can vary widely based on factors such as property size, boiler type, and location.

On average, installation costs typically range from £1,500 to £6,500. Larger properties with more radiators may require more powerful boilers, resulting in higher installation costs.

Obtaining quotes from professional installers is advisable to get an accurate estimate tailored to your specific needs.

10. Conclusion

Investing in a boiler is a significant decision that can improve your home’s efficiency, comfort, and value.

By understanding the cost of new boilers, the installation process, and the long-term benefits, you can make an informed choice that suits your heating and hot water needs.

Remember to consider factors such as the size of your property, the type of oil boiler costs, and the installer’s expertise when planning your installation. You can enjoy a warm and comfortable home for years with a reliable and efficient oil boiler.

If you’re ready to upgrade to an oil boiler, contact reputable installers in your area to obtain quotes and discuss your requirements. Investing in efficiency and reliability with a new boiler is a decision you won’t regret.

Say goodbye to chilly winters and high energy bills and embrace a modern oil boiler’s warmth and cost savings.

Disclosure: This post contains affiliate links, including Amazon Associate links, through which I earn from qualifying purchases at no extra cost to you. I only recommend products I genuinely believe in. Visit my Privacy Policy page for more information.