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Oil Boiler Cost to Replace


According to LSOA, 15% of UK households are off the gas grid. If your home is one among the 4 million in this category, you have no choice but to turn to either propane, electric or oil boilers for your central heating needs. And given the efficiency levels of oil boilers, odds are, you are currently using one for your heating needs.

Since a boiler typically has a lifespan of about 15 years, seeing you on this page means that your oil boiler is nearing the end of its services or is already dead. So you are probably planning to replace but are probably wondering what it will cost to replace your oil boiler.

But before getting on with the replacement, it would be prudent to consult a heating engineer to determine whether the time is ripe to undertake the process. But in the meantime, here are some tell-tale signs that your oil boiler needs a replacement.

When do I need to replace my oil boiler?

  • The boiler has clocked more than ten years of service.
  • The boiler efficiency has dropped, and heating bills have increased.
  • The boiler constantly breaks down and needs repairs.
  • The boiler is making unusual noises.
  • It is hard to find its replacement parts.
  • Warmth and comfortability levels have dropped in your home.

Now that you have ascertained that your oil boiler does need a replacement, you are eager to get over with it and restore your central heating system’s efficiency to its peak. But before going into the market for a replacement, it would be nice to know how much the entire process will cost you.

And as luck would have it, that is just what we are serving today on our menu. Join us on this ride as we uncover all you need to know about the cost of replacing your oil boiler.

But before then, do you know how an oil boiler works?

How does an oil boiler work?

An oil boiler supplies hot water and central heating to households by burning oil. The oil used for the process is usually stored in a tank outside the property. When the boiler fires up, it draws oil from the tank and sprays it over an igniter in the combustion chamber to create flames. The flame generated by the burning oil warms the combustion chamber situated below the water storage tank.

The water in the storage tank gets warmed by the heat from the combustion chamber and is then pumped throughout the house to cater for hot water and central heating needs.

What is the cost to replace the oil boiler?

Well, the average cost of buying and installing a new boiler for your home varies from one manufacturer to the next one. Other factors that also influence the cost of a new oil boiler installation include the type of boiler, the cost of labour, and whether or not you need some extras for your heating system.

On average, it will cost you around £1,500 to £2,000 to purchase a new lower to mid-range boiler model. For the installation part, hiring a heating engineer will cost anywhere between £800 to £2,000. That means that the total cost of replacing your oil boiler will cost you anywhere between £2,300 and £3,500.

Factors that may increase the boiler installation cost

You might be wondering why someone may be paying a heating engineer £800 to install the new oil boiler unit while your heating engineer may charge you upwards of £2,000 for the same service. Well, the reason depends on one or a combination of some of the following factors.

Level of labour needed.

The amount of work done by the heating engineer when installing the new oil boiler unit impacts the final cost of installation. For instance, if the job is simple and only requires replacing the old boiler with the new one, it will take a short time and cost a few hundred pounds.

On the other hand, if the installation process is complicated and involves laying new pipework and fitting a brand water tank, it will cost way more.

The boiler requiring a relocation

Oil boilers are either designed for internal or external installation. So, if you had initially installed an internal oil boiler and you feel it obstructs your way, you might want to get an external oil boiler to replace it. However, moving the boiler to a new location will increase the time needed to complete the installation as pipework has to be re-routed. This will increase the heating engineer’s fee, thus driving up the cost of installation.

Converting to a new type of oil boiler

It is normal to find your boiler type struggling to meet your home’s central heating and hot water needs. If this is the case, you may consider replacing it with an alternative boiler type that you feel will meet your demands.

Switching your boiler type may involve altering existing pipework or removing the water tank depending on the oil boiler types involved in the swap. The process will be lengthy and can even take up to three days where a combi boiler replaces a system boiler.

The heating system requiring a power flush

Most boiler manufacturers require you to carry out a power flush on your heating system before installing the new boiler. Power flushing the system will typically cost somewhere between £300 and £500.

Need to replace the oil storage tank

If your oil storage tank is old, it might start to leak and pollute the environment and waste a lot of oil.  The tank might also begin to let in substances such as water which can lead to freezing of the oil, impacting the performance of the new boiler.

If the oil storage tank is in poor shape, the heating engineer might refuse to install the new boiler unless you do an oil storage tank replacement. Buying a new oil tank will cost you between £600 and £2,500, not factoring in the installation costs.

Cost to operate an oil boiler

For efficient operation of your oil boiler, you have to purchase oil in bulk and store it in the oil storage tank. Assuming you have a 1000 litre oil storage tank, filling it will cost you around £58.5.

According to the Energy Saving Trust, oil, costing 4.81p/kWh is more affordable than wood fuel (5.99p/kWh) and significantly cheaper than electricity at 16.36p/kWh. So if you are using a 24 kW oil boiler for your heating needs, it will cost you about £1.15 to heat your home for an hour.

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