New Boiler Costs in the UK: What to Expect in 2024

A UK household can expect the cost of a new boiler to range from £500 to £3,500 before installation. However, an energy-efficient boiler, such as a biomass boiler, can save you up to 40% on your energy bill. This means that choosing the right boiler for your home can pay back its initial cost over time.

The overall cost of a new boiler installation is affected by several factors, including the type of boiler, its size, and the complexity of the installation process. Simple replacements usually cost less than changing boiler types or moving the boiler to a new location. Additionally, the efficiency of the boiler you choose can have long-term financial benefits by reducing your energy bills.

This guide will walk you through the factors influencing boiler costs, helping you make an informed decision and find the best option for your home in 2024.

How much does a new boiler cost?

The type of boiler, the complexity of the installation, and regional differences will affect the final cost of a new boiler installation in the UK. However, you can generally expect to pay between £1,500 and £5,000 for a new boiler, including installation.

Below is a breakdown of average new boiler costs, including installation, in the UK.

Factors influencing boiler costs

Several factors, such as the type and size of the boiler and the complexity of the installation, can affect the cost range of a new boiler. Below is an in-depth look at these key factors, helping you understand how each one affects the final cost.

Boiler type

One of the main factors that influence the total cost is the type of boiler you choose. Here's a breakdown of the common boiler types and their estimated costs:

• Combi Boilers: Combi (combination) boilers are popular for their efficiency and compact size. They provide both heating and hot water directly from the boiler, without the need for a separate hot water tank. This makes them ideal for small to medium-sized homes or properties with limited space. Excluding installation, combi boiler prices range from £500 to £3,000.
• System Boilers: System boilers are suitable for medium-to-large homes with high energy needs, as they can provide hot water to several outlets at once. Additionally, they only need a hot water cylinder rather than a water tank, making them more space-efficient than traditional boilers. Excluding installation, system boiler prices range from £580 to £3,500.
• Conventional Boilers: Also known as regular or heat-only boilers, conventional boilers are ideal for homes with traditional heating systems that include a separate hot water cylinder and cold water storage tank. These boilers are capable of meeting high hot water demands and are suitable for large homes. The installation costs for conventional boilers are typically higher due to the more complex installation process, which requires additional parts and labour.

Fuel types

Choosing the right fuel type for your boiler is an important factor as it impacts both the initial and running costs. Below is a breakdown of the common fuel types for boilers.

• Gas Boilers: Natural gas is a widely used boiler fuel in the UK because it is more affordable than oil or electricity, and most homes are already connected to the national gas grid. On average, natural gas is significantly cheaper, with costs often half of those for oil and a fraction of those for electricity. However, the availability of a gas supply in your area can determine whether a gas boiler is suitable for your home.
• Oil Boilers: In areas where there is no access to the gas grid, oil-fired boilers are a popular option. They are naturally more expensive to operate than gas boilers due to higher fuel costs. Additionally, increases in oil prices can affect long-term running costs. A fuel storage tank is also necessary for oil boilers, which increases the complexity and cost of installation.
• Electric Boilers: Gas and oil boilers can be replaced with electric boilers, which might be a potential option for homes that don’t have easy access to the gas grid. However, due to higher electricity costs, electric boilers can be more expensive to run. Excluding installation, electric boiler prices range from £590 to £2,500.
• Biomass Boilers: Although the initial installation cost of biomass boilers can be high, they pay back this expense through long-term savings due to their fuel sources, such as wood pellets, chips, or logs. Biomass boilers are the most environmentally friendly type of boiler system available, and the UK government supports the transition to renewable energy by providing grants. These grants offer up to £5,000 towards replacing your current boiler with a biomass boiler, making them a more cost-effective choice for your home.

Size of the boiler

The size of the boiler, measured in kilowatts (kW), is one of the most important factors that determines its heating capacity and influences the overall cost. Choosing the right size boiler for your home will not only affect the initial and running costs but also ensure optimal performance and efficiency. Below is a breakdown of the suitability and costs associated with small and large boilers to help you choose the right boiler for your home.

• Small Boilers: For smaller homes with less demand for hot water and heating, smaller boilers with lower kW ratings may be more suitable as the cost of purchasing and installing them is less. However, it's important to ensure that the boiler's capacity meets your home’s needs to avoid underperformance.
• Large Boilers: Larger homes with higher demand for hot water and heating need larger boilers with higher kW ratings. These boilers can provide sufficient heating for multiple bathrooms and larger rooms. While they come with a higher initial cost, they offer the necessary performance and efficiency for bigger households.

Complexity of the installation

Another factor to consider when budgeting for a new boiler is the complexity of the installation process. Several aspects of the installation can add to the overall cost. In this section, we provide the essential information you need to understand how these factors impact your new boiler cost.

Type of Installation

• Simple Replacements: The installation of replacing an old boiler with a new one of the same type (such as combi to combi) is normally straightforward. The costs for this type of installation are generally lower because it involves less labour and fewer modifications to your current system.
• Upgrading or Changing Boiler Types: Changing the type of boiler or upgrading your current system can involve a more complex installation process. This may require additional labour such as relocating the pipework, installing new components, or updating the flue system. These factors increase both the labour and equipment costs.

Location of the Boiler

• Existing Location: It is usually cheaper to install the new boiler in the same location as the old one. This often requires less labour because the existing flue, wiring, and pipes can be reused.
• New Location: The installation cost can increase significantly if the boiler is moved to another location in the home. This may involve thorough adjustments of the pipework, additional drilling, and possibly more complex flue arrangements. The ease and cost of installation may also be affected by how accessible the new location is.

UK government grants for upgrading boilers

Although upgrading to a more energy-efficient boiler can be an expensive investment for some households, the UK government offers several grants, such as the Boiler Upgrade Scheme (BUS) and the Energy Company Obligation (ECO4), to eligible households. These grants aim to enhance access to these upgrades for a more diverse range of UK households.

The Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) is designed to support the installation of energy-efficient heating systems across the UK. Launched to encourage the adoption of renewable heating technologies, this scheme provides grants of up to £5,000 to eligible homeowners.

The BUS specifically targets the installation of biomass boilers and heat pumps, helping to make these sustainable options more affordable. By reducing the initial cost burden, the scheme promotes the transition to greener heating solutions, contributing to lower energy bills and reduced carbon emissions.

The Energy Company Obligation (ECO4)

Effective through March 2026, the Energy Company Obligation (ECO4) focuses on improving energy efficiency in UK homes, with an emphasis on supporting low-income, fuel-poor, and vulnerable households. The ECO4 scheme provides grants for heating and insulation upgrades, including new boiler installations. By offering financial assistance, ECO4 aims to make energy-saving improvements more accessible, thereby reducing energy costs, lowering emissions, and enhancing home comfort. This initiative plays a critical role in helping households transition to more efficient and sustainable heating systems.

Is boiler replacement worth the investment?

Yes, replacing your boiler is often worth the investment for the average UK home. This largely depends on your current boiler's efficiency, the type of new boiler you choose, and your household's heating needs.

Modern boilers, especially condensing models, are significantly more efficient than older ones. While the initial cost of a new boiler can be high, the improved efficiency can lead to notable savings on your energy bills. On average, a new boiler can save a typical household up to £300 per year in heating costs, with the payback period for the investment often being as short as 5 to 10 years.

Annual Savings from a New Combi Boiler

A new combi boiler can save an estimated £300 annually for the average home in heating costs. This is based on the improved efficiency of modern boilers, which can be up to 90% or higher, compared to older boilers that might only be around 60-70% efficient.

These savings take into account typical UK household energy usage and the efficiency improvements provided by a new boiler. Over the lifespan of a boiler, which is generally 15 years or more, these annual savings can accumulate to significant amounts, potentially offsetting the initial installation costs and providing long-term financial benefits.

New Boiler Costs in the UK: What to Expect in 2024 How much does a new boiler cost? Factors influencing boiler costs UK government grants for upgrading boilers Is boiler replacement worth the investment? FAQs