Cost of Installing an Oil Boiler

Introduction to Oil Boiler Costs

An oil boiler installation can be a hefty cost, with so many options to choose from. Oil boiler prices vary considerably depending on the system you intend installing.

Different sizes will also affect the oil boiler prices, and then there are the costs associated with after-care. What is the cost of an oil boiler service? Is an oil boiler engineer expensive?

Will they come out at a moment’s notice or will you be without heat for a long time? Is there an average cost for a new oil boiler or does it very much depend upon where you live, does the price depend on location?

So, when choosing your oil boiler installation, which is the best for you?

How Much Does Installing an Oil Boiler Cost?

Combi boilers can range from £2,225 - £2,950; heat only boilers from £1,200 - £2,500 and system boilers from £1,450 - £2,600.00.

This includes internal and external models, and the cost of the make and model chosen.

Basic, heat only boilers will start at £1,150 to £2,800 (without the cost of the installation). Oil combi boilers start from between £2000 to £2,600.

Also, remember to factor in an extra £500 plus if the new oil boiler needs to be re-located. You might also need to change your tank.

Integrally bunded oil tanks cost between £1,150 and £2,000 depending on the size of the tank. Oil boiler installation cost will mainly depend on the type of boiler, it’s capacity and, of course, the engineer’s daily rate.

Fitting a new oil boiler is becoming increasingly popular as there are many benefits. An oil boiler provides improved heating efficiency, which means cheaper bills.

A new oil boiler will be better for the environment, producing lower carbon emissions. This has a positive environmental impact, and is appealing to home buyers, should you wish to sell.

You need to consider the cost of the oil boiler, the heating engineers daily rate and the running costs. If you cannot afford to install a new boiler, shop around for a monthly payment plan.

Some companies offer 0% finance for 12 months, allowing you to spread the cost without incurring any interest.

The price for fitting a small tank, including a new base starts around £2,200 to £2,800. Digging a new trench for the oil pipes will cost another £500.

If you already have a tank that you’re replacing it will have to be professionally drained, adding at least another £350 to the project, depending on your engineers’ charges.

Oil tanks cost between £1,150 and £2,000 depending on size. Almost all new oil tanks are integrally bunded plastic. A bunded oil tank is double skinned. Should a leak or spillage occur the fuel is contained in the bund area.

An added benefit of a bunded tank protection from the weather. Building regulations advise that all new oil tanks installed are bunded.

The hot water flow rate for a combi cannot be adjusted. For example, under two-bed internal oil boilers, flow rates vary between 12 litres per minutes and 18 litres per minute.

Flow rate is important, if you have multiple bathrooms you may wish to opt for a higher flow rate models.

Internal - Combi Boiler

Internal - Heat Only Boiler

Internal - System Boiler

External - Combi Boiler

EXTERNAL - Heat Only Boiler

Types of Oil Boiler

There are three types of oil boilers: combi, system, and heat only models. There are also internal and external boilers on the market with ‘balanced flue’ systems. As standard there is a great deal of flexibility for locating the boiler.

The plumes from oil boilers can be significant, however, and an important consideration is where the flue terminates.

A regular boiler doesn’t provide domestic hot water directly but can be connected to a separate hot water store. A combination (combi) boiler can provide domestic hot water directly. Some models contain an internal hot water store.

According to building regulations, most oil boilers are very energy efficient and are required to be at least 86% efficient to have an A+ rating. In most cases, oil boilers are at least 89-90% efficient.

Combi Oil Boiler Cost

Combi boilers are the UK’s most popular form of home heating.

Efficient and effective, there are several benefits to getting a combi boiler installed.

An oil boiler will almost always have a variable output. A 15/21 boiler can be adjusted to output from 15kW to 21kW.

There are three sizes of combi boiler available, 24-27kW, 28-34kW and 35-42kW.

A 24kW boiler can heat a small house with ten radiators and one bathroom.

Larger houses need more powerful boilers.

To calculate the number of British Thermal Units (Btu) required from your boiler to heat your home, use a Btu calculator, available online.

In combi boilers, the heating output needs to be around 18kW for the heating and 24kW and upwards for hot water.

Ensure you ask your installer to adjust the output of your boiler to 6-10kW.

A new oil boiler, including installation costs, is around: £3,400 - £4,500 for an internal combi boiler.

Models start at £2,000 running up to £2,600.

Pros:

✔ Improved performance.

✔ Easy to use controls.

Cons:

✖ Must suit the property or can underperform.

✖ Not very fuel efficient.

Heat Only Oil Boiler Cost

Heat only boilers work in conjunction with a hot water cylinder and are available in open vented and sealed system models.

Prices are between £2,500 - £3,800 for an internal heat only boiler (assuming the cylinder is retained).

This will increase by around £300 - £400 for an external model.

Add around £500 if the boiler is re-located (inside or outside).

Pros:

✔ Cheaper than combi boilers.

✔ Easily accomodate British houses.

Cons:

✖ Must have great water pressure.

✖ Might not have the best warranty.

System Oil Boiler Cost

Have additional components integral to the boiler, i.e. an expansion vessel and circulating pump.

They use a sealed system and are installed on a fully pumped system.

System boilers take cold water directly from the mains, heats it and sends it to a separate hot water cylinder where it is stored ready for use as heating and hot water.

Pros:

✔ The manufacturer’s warranty covers integral parts.

Cons:

✖ When the cylinder is empty, you will need to wait for it to refill.

Condensing Boiler Cost

Condensing boilers can provide efficiencies of 92-94%, but this is rarely achieved.

They need to operate at lower temperatures than non-condensing boilers to achieve optimum efficiencies.

However, they are usually set to run at high temperatures.

Pros:

✔ Cheap to run.

✔ Emits less carbon monoxide.

✔ Faster to build than most options.

Cons:

✖ Lack of installer knowledge.

✖ Poorer performance than other boilers.

Internal or External Boiler?

The only difference between an internal oil boiler and an external oil boiler is that an internal one is sited outside, whilst an external is installed outside.

They both work in the same way, needing a tank for storing oil, which is then connected to the boiler.

Oil is delivered to the boiler when required, feeding it fuel as needed. The boiler will then heat and supply the water for your water and radiators

External Boiler

External boilers should be located on a hard stand to prevent corrosion.

If the bottom of an oil boiler exceeds a temperature of 100 degrees (check the manufacturer's instructions), it must stand on a ‘constructional hearth’.

This is a concrete stand with a thickness of at least 150mm.

Prices start at around £2,200 for smaller tanks (this including a new base) and raise to £2,800.

Other costs include: trenching a new oil line - £500 – and draining the old tank - £350.

Boilers prices vary according to manufacturer and size.

Heat only boilers are cheaper, starting at £1,150 running up to £2,800

Pros:

✔ UK properties need under 10kW to heat.

✔ Less noisy than internal boilers.

✔ No carbon monoxide risk.

✔ No damage to home if boiler breaks.

✔ Servicing is easier.

Cons:

✖ Can be an expensive install.

✖ Not as energy efficient.

✖ Increased risk of rusting, freezing or other damage.

Internal Boiler

If you have little or no external space, then siting your boiler internally is an alternative.

These systems are small enough to fit inside a kitchen cabinet, and as there are no tanks or cylinders, they are quick to install.

They are very efficient and economical to run, and there will be no wait for hot water as it flows on demand.

Oil boilers will reduce your energy bill and carbon footprint too, but the average cost of installation will cost more compared to other boiler options.

If the boiler is to be located close to a bedroom, it is essential that you fit a carbon monoxide alarm to warn you should there be a leakage.

Pros:

✔ Fresher water.

Cons:

✖ Can be noisy.

✖ Danger of gas leakage.

What Does Installing an Oil Boiler Involve?

Below is the step by step guide your installer will follow when installing an oil boiler:

In England and Wales, a qualified safety registered engineer needs to install the system.

This engineer will deal with any pipework, water valves etc. as the boiler needs to be isolated from the water supply and may remove the gas pipe if no longer needed.

Copies of the certificates are sent to the householder and local authority building control department.

Selecting the right boiler for your home depends on the space you have, it’s intended use and the fuel type used.

A gas boiler is usually the cheapest option if your home runs off mains gas.

If you don’t have a gas supply, consider a low carbon heater such as a heat pump or biomass.

To calculate the correct boiler size, you need to factor in the property size, age, hot water requirements (for combis only) and insulation levels.

For combi boilers, the size is ‘bigger’ because it includes hot water production.

Regular boilers are faster and more efficient if you have a large house or family, this is the best choice.

If you live in a flat or a one to two-person household, a combi boiler should be sufficient, and it will take up less space.

An engineer will install your new system at the same time as any old one is removed.

The cost and time spent on installation varies depending on the type and size of the boiler, but most can be fitted within a day or two.

The oil boiler will be installed in your chosen (and approved) location.

The unit is connected via pumps and pipes to radiators, water outlets and the cold water mains supply.

If you’ve chosen a regular, rather than a combi, boiler, the cold water storage tanks will also need to be connected.

The installation will also include connecting your boiler to electrical controls, so you can alter the central heating without having to go to the boiler room directly.

Your engineer will test your system to make sure the installation is successful.

Some specialist installation companies will lay a new oil line and removing waste oil from the bottom of the oil tank.

Otherwise, you can arrange for removal with your fuel supplier.

If you are replacing the tank when you replace your boiler, this can be carried out simultaneously by the same company for around £300.

Other costs considerations are a new oil line, and a new trench, about £500 for 10 metres.

It’s important to service your boiler regularly, to keep the boiler’s warranty valid, and ensure it’s safe and efficient.

Faulty boilers can emit carbon monoxide, which can be deadly, even in small amounts.

A regular oil boiler service can reduce yearly fuel costs by up to 10% and faults, and other problems can be pinpointed and rectified quickly.

An oil boiler should typically last between 10 and 15 years.

Warning signs include higher heating bills, strange noises coming from your boiler, your radiators not heating as they should or strange smells coming from the unit which could signify dangerous carbon monoxide gas emissions.

A 450 mm trench needs to be excavated for underground pipework. These pipes must rest on compacted sand.

More sand fills over the top before the trench is filled in.

Pipework should take the most direct route to the boiler, and be sleeved as it enters a building, with a fire valve fitted before entry.

This includes internal and external models, and the cost of the make and model chosen.

Basic, heat only boilers will start at £1,150 to £2,800 (without the cost of the installation).

Oil combi boilers start from between £2000 to £2,600.

Also, remember to factor in an extra £500 plus if the new oil boiler needs to be re-located.

Other prices include trenching a new oil line - £500 and draining the old tank - £350.

DIY Oil Boiler Installation.

You cannot install a boiler yourself, even if you are just replacing a boiler.

A qualified engineer will assess and advise you on the best choice of new boiler for your property.

Only after you have made your decision will the engineer provide you with an accurate quote for the work.

Get three quotes for the work to get the best price.

Building control regulations are stringent regarding the type and location of tanks.

The tank must be 760mm away from a boundary and 1.8m away from a non-fire rated building (such as a shed) and openings in a fire-rated property (house or outbuilding).

It must be positioned on a hard stand of at least 50mm thick slabs which has to extend 300mm around the footprint of the tank.

Under oil tank building regulations for England and Wales oil tanks with less than 2500 litre capacity must be bunded if the tank is:

• Within 10 metres of controlled water.
• Located where spillage could run into an open drain or to a loose manhole.
• Within 50 metres of a borehole or spring.
• On hard ground that could enable spillage run-off to reach controlled water.
• Located in a position where the vent pipe outlet is not visible from the fill point.
• Supplying heating oil to a building other than a single-family dwelling..

Building regulations stipulate that oil boilers must be at least 86% efficient (rated A+). In most cases, oil boilers will be at least 89-90% efficient.

This means that for every £1 you spend on heating your home, only 10 -11p is spent on wasted energy.

When you consider older boilers offer as little as 60-70% efficiency, wasting 30-40p of every £1, a considerable saving over a year.

Potential Problems and Pitfalls

You will avoid any possible pitfalls and save time and money by getting professional advice when installing your oil boiler.

Install an oil boiler is NOT a DIY project You need a qualified professional to undertake the work; otherwise you can run into problems: -

• Replacement costs are high.
• Higher maintenance costs.
• Oil theft is not uncommon.
• There is a risk of oil leaks.
• Oil prices can fluctuate considerably.

It’s worth knowing that the owner of the tank is responsible for clean-up costs, which could be considerable.

Oil spillage insurance will be an extra cost.

Installation costs for a new oil boiler are more expensive than gas, and oil boilers are considered bad for the environment because they produce carbon dioxide.

If you have an externally sited boiler, damage can occur from weather exposure.

Cold, frost and rain can result in a malfunction of parts and possible replacement.

Whilst the storage tank needs to be accessible for refilling, it’s wise to consider where it is sited.

If placed incorrectly as it can be an eyesore.

Also, as oil supplies need to be delivered, delays can occur due to adverse weather conditions such as snowfall.

Expensive pipe installation may be necessary if connections are not close by.

Check regularly for signs of corrosion on a metal tank or bulging on a plastic tank and watch out for leaks in pipe joints and physical damage.

Seals around lids and hatches can corrode, and lids and caps need to be secure.

During the summer months, water can build up due to condensation, so keep on top of this.

An oil boiler usually has a lower flow rate than a gas boiler, and there can be a decline in water pressure if more than one outlet needs hot water at the same time Combi boiler systems don’t have backup immersion heaters to heat water in the event of a breakdown.

Oil boilers reduce your energy bill and carbon footprint.

However, whilst your energy bills will be cheaper, the average cost of installation will cost more compared to other boilers.

If the boiler is to be located close to a bedroom you will need a carbon monoxide alarm to warn you should there be a leakage.

You are obliged to prevent a hazardous substance polluting the environment.

If there is an oil spillage, you will be responsible for the clean-up, which can be costly.

Most oil users take out insurance against oil spillage.

Most insurers will require an annual oil inspection with any recommendations made within 60 days.

The UK government’s Clean Growth Strategy (2018), means that the installation of high carbon fossil fuel heating is to be phased out.

New build properties will have to be built using low-carbon heating like heat pumps.

Existing homes will not be affected, but regulations have yet to be confirmed.

Studies are the use of on-going gas alternatives such as hydrogen blends for gas boilers.

Research is underway to discover low-carbon replacements for oil that will be compatible with current oil boilers.