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Oil boiler cost guide

If your property isn’t connected to the main gas or electric network, an oil boiler can be a good alternative for heating your home and water. They can be cheaper to run than some heating systems such as electric boilers, but oil-fired boilers are often more expensive to install.

There’s also the option of ‘heat only’ boilers. These are cheaper than other oil-fired boilers, but they don’t provide hot water.

Oil boiler types

oil boiler installation showing pipes and wires

There are three main types of oil boiler:

Combi oil boiler

These boilers provide both hot water and central heating on demand. It comes from a single system without the need for additional storage tanks or cylinders.

A combi oil boiler is a good option for smaller homes with just one or two bathrooms. But they may struggle to keep up with demand in larger properties with multiple bathrooms.

Heat only oil boiler

As the name suggests, these oil boilers are only able to heat your home. They don’t supply hot water to your taps as well.

System oil boiler

System boilers supply your central heating system, while storing hot water for domestic use in a cylinder. These boilers are fed with a mains water supply, so there’s no need for a cold water tank in the loft.

New oil boiler cost

Type of BoilerBoiler cost lowest Boiler cost highest
Installation cost lowestInstallation cost highestAverage total UK cost
Heat only£1,200£2,450£500£2,000£3,075

The cost of a new oil boiler varies according to the type of boiler you choose (i.e. combi, heat-only or system) and the size of your home. The larger your home, the larger the boiler required – and this means it’ll cost more.

Oil boiler installation cost

The installation cost depends on whether you’re replacing an old gas or oil boiler, or if you’re installing it in a new location. If you get it installed as an external boiler, this can also affect the cost.

Prices increase by approximately £400 if installing the boiler outside and by about £500 installing the boiler in a new location.

Oil boiler installation process

You should get your oil boiler installed by an OFTEC registered engineer, who will assess the site and lay out a schedule for the installation process. The work will include pipework and plumbing, the installation of a usually freestanding boiler and oil tank, and any associated works.

How long does it take to install an oil boiler?

It typically takes around a day to install an oil boiler, but this varies according to the location, size of home and whether the boiler is being installed in place of an old boiler. The biggest influence on the timescale is the complexity of the pipework required.

Can I move an oil boiler?

It’s possible to relocate an existing oil boiler. However, it often works out more expensive to do this compared to the cost of buying a new one and having it installed in a new spot.

Find an oil boiler installer near you


Can oil boilers be converted to gas?

Your oil boiler can be converted to gas, but it can be very expensive to do.

Does the cost of oil fluctuate?

Heating oil prices can and do change during the year. This means you can stock up when prices are lower, but you can also expect to pay more if you’ve run out of oil and have no choice but to buy at a time when prices are higher.

How often do I need to get my boiler inspected?

Oil boilers require annual maintenance checks, just like gas boilers need an annual service.

Are oil boilers environmentally friendly?

Oil is a fossil fuel that produces carbon dioxide when burned. It isn’t a clean source of energy and so can’t be considered environmentally friendly.

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