How Much Does A New Oil Boiler Cost?

A new oil boiler costs between £1,000 and £4,800, or £2,500 on average. For commercial properties, costs can range from £5,000 to £15,000. The price depends on the unit’s size, manufacturer, and installation complexity. Additionally, operating your new boiler will cost you between £1,200 and £3,000 annually.

Best 5 oil boilers:

• Worcester Bosch Greenstar Heatslave II
• Firebird Envirogreen
• Warmflow Agentis
• Navien LCB700 Blue Flame
• Grant Vortex Pro

Let’s dive into the average costs of buying and operating an oil boiler.

What Is The Average Cost Of An Oil Boiler?

The average cost of an oil boiler is around £2,500 for residential properties, though prices can range from £1,000 to £4,800 depending on the type and brand. Commercial boilers cost around £8,750 on average.

Energy-efficient models may cost more upfront but offer long-term savings in heating bills. There are three main types of oil boilers, each designed to meet different needs and available at various price points.

Combi oil boiler

• Residential cost: £1,250 to £4,250, depending on the size of the property and specific boiler model.
• Commercial cost: £5,000 to £15,000, depending on the heating required for larger commercial spaces like hotels or office buildings.

Combi oil boilers are the most expensive because they combine central heating and hot water production in one unit, eliminating the need for separate tanks. Their compact design and installation complexity, along with the convenience of instant hot water, contribute to the higher cost.

Key Features:

• Most popular choice: Combi oil boilers are highly popular for both residential and commercial use.
• No oil storage tank needed: These boilers combine heating and hot water.
• Best for small to medium-sized properties: Perfect for small homes, hotels, or offices where space is at a premium.
• Excellent fuel efficiency: Efficient fuel use helps to lower energy bills over time.

The best residential combi oil boiler is the Worcester Bosch Greenstar Heatslave II, which is priced between £2,400 and £2,900. For commercial properties, opt for the Worcester Bosch Greenstar Danesmoor 32/50, priced between £4,000 and £6,000.

System oil burner

• Residential cost: £1,100 to £3,250, depending on the boiler’s size and the property’s hot water needs.
• Commercial cost: £4,500 to £12,000, based on commercial demand, such as in hotels or gyms.

System oil boilers are typically the cheapest because they work with a separate hot water cylinder, which simplifies the boiler’s design and reduces manufacturing costs. These boilers store hot water separately, allowing multiple taps or showers to run simultaneously without losing pressure or heat.

Key Features:

• Hot water cylinder required: Needs a hot water cylinder for storage but no cold water tank.
• Best for larger properties: Ideal for larger homes with three to five bedrooms or multiple bathrooms, or commercial properties with high demand, such as hotels or gyms.
• Reliable hot water pressure: Ensures consistent hot water pressure, even when multiple outlets are in use.

The best residential system oil boiler is the Firebird Envirogreen, ranging from £1,600 to £2,900. For commercial use, the Firebird Enviromax is ideal, costing between £4,000 and £9,000.

Conventional oil burner

• Residential cost: £1,000 to £3,500, depending on the boiler’s capacity and property size.
• Commercial cost: £3,500 to £10,000, dependant on the larger heating needs of commercial properties.

Conventional oil boilers are a mid-range option in terms of price. They require both a hot water cylinder and a separate cold water tank, making them more complex than system boilers but simpler than combi units. They are ideal for properties with specific water pressure or space needs.

Key Features:

• Needs cold water tank and hot water tank: These boilers need both a cold water tank and a separate hot water storage cylinder for operation.
• Ideal for older properties: Perfect for older homes or commercial buildings with low water pressure or multiple bathrooms.
• Consistent hot water flow: Provides steady hot water flow, with flexible installation options to suit different needs.

The best residential conventional oil boiler is the Navien LCB700 Blue Flame, priced between £1,450 and £1,700. The best commercial option, the Firebird Envirogreen™ Heatpac C73, is also recommended, priced between £3,000 and £5,500.

Top 5 Oil Boiler Cost Comparison

Worcester Bosch and Firebird offer premium efficiency and warranties, making them ideal for medium to large residential and commercial properties. 

Navien offers budget-friendly solutions for larger homes and small to medium commercial spaces, while Warmflow is best for small to medium commercial use. Grant Vortex Pro is a reliable choice for medium commercial properties and larger homes.

Boiler Brand	Boiler Type	Efficiency	Features	Warranty	Price
Worcester Bosch Greenstar Heatslave II	Combi	Rated A (up to 92%)	Reliability Build qualityCompact designsSuitable for small – medium homes	Up to 5 years (depending on model & installation)	£2,400 – £2,900
Firebird Envirogreen	Conventional	Rated A	High efficiencyEco-friendlyLow emissionsCompact designSuitable for small-medium homes or commercial properties	Up to 2 years on parts, and 5 years for the shell(depending on model and installation)	£1,600 – £2,900
Navien LCB700 Blue Flame	Conventional	Rated A	Highly efficientEco-friendly optionsBuilt-in controlsSuitable for large homes, and small-medium commercial properties	Up to 5 years on parts(depending on model and installation)	£1,450 – £1,700
Warmflow Agentis 21-27kW	Combi	Rated A	Blue flame technologyHigh efficiencyQuiet operationSuitable for small-medium commercial use	Up to 2 years (depending on model & installation)	£1,450 – £1,700
Grant Vortex Pro	Conventional	Rated A	Condensing technology High efficiency Low NOx (Nitrogen Oxide) emissionsSuitable for larger homes and medium commercial properties	Up to 2 years on parts(depending on model and installation)	£1,350 – £2,500

How Much Does It Cost To Install An Oil Boiler?

The cost of installing an oil boiler ranges between £1,100 and £3,250 for residential properties. 

Commercial oil boiler installation costs start at £1,800 and can go over £10,000.

By comparison, boilers fuelled by other means, like gas, may be higher due to the price to connect to local utilities. While an electric boiler installation cost may be cheaper initially, this is offset by higher running costs. 

What factors influence the costs of installing an oil boiler?

Boiler type

Combi oil boilers may be more expensive initially, but they don’t require additional tanks, making them cheaper overall for places without water storage. Check out these options for the cheapest combi boilers.

System boilers often need extra installation work, making them a more expensive installation choice. 

Compatibility

The central heating system in older premises may need to be upgraded to allow the installation of newer boilers. A new and bigger system will involve the cost of moving a boiler.

Installation extras

Complicated installations, such as in older buildings or when installing a new external oil boiler, may require extra pipework, replacement parts, a new oil storage tank, or a system upgrade, leading to higher costs. 

Flushing your existing heating system before installation is recommended and may be an additional cost depending on the installer. In general, these are cheaper than a biomass boiler’s installation cost.

Optional extras

Several nice-to-haves will increase oil boiler installation costs, like adding new radiators or a WiFi-enabled smart thermostat.

Removal of old equipment

If replacing an existing boiler, you may have to pay for the removal and disposal of the old unit.

Time of year

Seasonal demand for installation services can affect prices. Installation during peak seasons (like winter) may be more expensive due to higher demand for heating services.

Permits and inspections

Some businesses or older homes may need permits and inspections before installation. These costs vary according to local government regulations.

Location

An oil-fired boiler may be the only option in areas where services are unavailable and a gas boiler can’t be used, such as rural areas. However, being located in these areas could increase the cost of installing an oil boiler, as there may not be as many labourers available. 

How Much Does An Oil Boiler Cost To Run?

The cost of running an oil boiler typically ranges between £1,000 and £3,000 annually, with an energy usage of 8,000 to 17,000 kWh for residential properties.

Residential oil boiler running costs

Currently, heating oil prices are around 70p per litre. For a one- to two-bedroom house, the annual cost can be about £1,120. In contrast, a larger home with four or more bedrooms may incur costs of up to £3000.

These estimates are for standard radiators. An average radiator uses about 1.5 to 3 litres of oil per hour. Running a single radiator for 8 hours daily can cost between £8.40 and £16.80.

Additionally, underfloor heating typically requires about 20 to 60 watts per square metre, depending on the house size. In most homes, underfloor heating is usually installed on one floor, while radiators are used on the other/s.

For an average small home of about 200 square metres, with underfloor heating using 40 W/sq m, the total heat input needed for the whole house would be around 8 kW.  This means that running the underfloor heating for several hours per day could cost around £1,200 annually. The exact cost depends on how often the heating is used and the local energy rates.

Commercial oil boiler running costs

For a small commercial space, annual heating costs can be approximately £2,500, while larger facilities may pay £6,000 or more. These estimates assume standard heating requirements. An average commercial radiator uses about 2 to 4 litres of oil per hour, so running a single radiator for 8 hours daily in very cold weather can cost between £11.20 and £22.40 per day.

Underfloor heating in commercial spaces may require about 30 to 80 watts per square metre, depending on the size and purpose of the building. For an average medium-sized commercial property of about 500 square metres, with underfloor heating using 60 W/ sq m, the heat input needed would be around 30 kW. This will have an average annual cost of around £3,600.

What Are The Maintenance Costs For An Oil Boiler?

An oil boiler’s maintenance cost ranges from £90 to £230 annually, in residential properties. Average commercial boiler maintenance will be from £200 to £500 annually. Larger commercial boilers may need more frequent services, which will drive prices up.

The cost depends on the boiler’s age, brand, and whether repairs or replacements are needed. Routine servicing includes cleaning and fuel line inspections. This improves your boiler’s energy efficiency, reduces fuel waste, and saves money.

Regular maintenance reduces the risk of breakdowns. It’s essential to hire OFTEC-registered heating engineers to ensure safety and compliance.

Your time is valuable and needs to be factored in as well. Check this article to find out how long your boiler service will take. 

Get An Oil Boiler Quote Today

The UK government plans to drastically reduce carbon emissions and phase out old oil boilers by 2035. With that in mind, whether you need a new boiler or are planning to upgrade your current one, now is the time to explore options for energy-efficient alternatives before the changes take effect.

Save time by filling in one simple form and receiving a free, no-obligation oil boiler quote from Eco Happy. Our experts will help you slash your carbon footprint and save money by tailoring a boiler quote to your specific needs. Click the “Get a Quote” button today to get started!

FAQs

Should I replace my 20-year-old oil boiler?

Yes, an ageing boiler is much less efficient, driving up your heating costs. Replacing it can improve energy efficiency, reduce bills, and prevent frequent breakdowns.

If you don’t know it, this guide will help you find your boiler’s age.

Can I get a new oil boiler for free?

No, oil boilers are excluded under the Energy Company Obligation (ECO4) scheme. Some homeowners and tenants may qualify for a subsidy or free boiler replacement.

Do I need an oil boiler replacement?

If your boiler struggles with efficiency, makes unusual noises, or experiences frequent breakdowns, it’s time for a replacement. Replacing an old boiler with a more efficient model leads to long-term savings on your energy bills. 

If your current boiler is new, try this checklist to find out why your boiler’s not working first. If that does not solve the problem, get the services of a qualified heating engineer.

Final Thoughts

Oil boilers come with varying costs for purchase, installation, and maintenance, depending on the type and size. Regular servicing reduces running costs. Whether you’re upgrading or replacing your unit, consider energy-efficient options to reduce your carbon footprint.

Now is the time to explore your options, and save on your heating bills!