Is it worth switching from Oil to a Heat Pump?

Many homeowners are considering the switch from oil boilers to air source heat pumps for their heating systems. Concerns about the environment and fluctuating oil prices make air source heat pumps an attractive, sustainable option. This article will discuss the benefits of transitioning from an oil boiler to a heat pump, associated costs, and the overall process.

Considerations when switching from Oil to a Heat Pump

When deciding between a heat pump and an oil boiler, various factors such as environmental impact and cost savings should be considered. Here’s an in-depth look at why a heat pump may be the better choice.

1.  Environmental considerations

Air source heat pumps are a much more energy-efficient and eco-friendly option compared to oil boilers for heating and providing hot water in a household.

These pumps use electricity to take heat from outside and bring it into your home, with efficiencies between 300 and 420%. New oil-fired boilers are usually 92-93% efficient, but older ones are only around 70% efficient. This means that heat pumps are three or four times more efficient, and the electricity they use is sourced from approximately 41% renewable sources in the UK.

Oil boilers typically burn heating oil (kerosene) to produce heat, releasing about 2.5 kilograms of carbon emissions per litre of oil burned. The average UK home using an oil boiler consumes approximately 2,500 litres of oil annually, leading to emissions of about 6,250kg of carbon emissions each year.

A heat pump might require about 4,000kWh per year to heat an average home, depending on how well the property is insulated. The UK grid's average carbon intensity has been around 181g CO2/kWh recently, thus producing approximately 725kg of carbon emissions each year.

A saving of 5.25 tonnes of CO2 a year is significant. Imagine if all of the 1.5million homes in the UK using oil boilers were to switch?

2.  Converting the oil heating system to a heat pump

The cost to convert from oil heating to a heat pump will vary from home to home. The large costs will be:

●      Labour Costs: Hiring a qualified technician to safely disconnect and dismantle the boiler. Labour costs can vary but typically range from £200 to £500,

●      Emptying the Tank: Before removal, any remaining oil in the tank needs to be safely drained and disposed of. The cost for draining and disposing of the oil can vary widely depending on the amount of oil and local disposal fees, but it generally ranges from £200 to£500.

●      Physical Removal: After draining the tank, the physical dismantling or excavation of the tank must be carried out.Costs here can vary depending on whether the tank is above ground or under ground. Above-ground tank removal is generally less expensive and can cost between £300 and £600. Underground tanks are more costly to remove due to the additional labour and equipment needed to excavate the tank, with costs typically ranging from £1,000 to £2,000 or more.

●      Air Source Heat Pump System: Prices for the heat pump units themselves typically range from £3,000 to £6,000.

●      Installation Costs: These can vary significantly but are usually in the range of £1,500 to £4,000 to install a heat pump, depending on the complexity of the installation, such as whether additional ductwork is required, the need for new radiators, or alterations to existing ones to operate efficiently at lower temperatures.

●      Heating Distribution System: If your home uses radiators, they may need to be upgraded or increased at a cost of circa £125 per radiator.

●     InsulationUpgrades: Effective insulation is crucial to make the most of a heat pump installation. Upgrading loft, wall, or floor insulation can add to the upfront cost but is vital for ensuring efficiency.

The good news is that financial support is available, there is a £7,500 grant available via the Boiler Upgrade Scheme, as well as other incentives if you have a mortgage with certain providers. Try our plan to see whether you are eligible for either or both? This means that the cost of converting to a heat pump for many homes could be similar to that of buying and installing a new oil boiler.

A final consideration to offset the cost of installing the heat pump as are placement for the oil boiler is the value of the property. Research carried out by the WWF has shown that a heat pump could add between1.7% and 3.0% to the value of your home.

3.  Cost of running a heat pump versus an oil-fired heating system

In general a heat pump will have a lower running cost than an older boiler given the far greater efficiency of the heat pump, at more than 3 times more efficient (often up to 4 times ), if we assume an efficiency of 70-80% for the boiler and oil price of 70p per litre.

Running costs of a brand new 90%+ efficient oil boiler and a heat pump running at 340% efficiency will be broadly similar allowing for the April 2024 price cap.

One great way to bring the cost of running the heat pump down further is to select an adjustable tariff and use your water storage like a battery. Heat the water while electricity is cheap overnight. They are fantastic when paired with Solar PV as well, as you can use your roof to generate electricity to power the heat pump. We have designed a Plan to discover what best suits your house and the financial benefits it may unlock.

What are the advantages and disadvantages of moving from oil to electricity?

While both heating systems have their merits, let’s compare the advantages and disadvantages of making the switch to a heat pump.

Frequently asked questions about the removal of an oil boiler and tank

Q1: What are the steps involved in removing an oil tank and boiler?

‍The process involves several steps:

• Assessment: A professional will assess your current system and the site.
• Draining: The remaining oil is drained from the tank.
• Disconnection: The tank and boiler are disconnected from the pipework and electrical connections.
• Removal: The tank and boiler are safely removed from the property.
• Disposal: The old equipment is disposed of in accordance with environmental regulations.
• Installation: The heat pump system is then installed and connected.

Q2: Do I need to empty my oil tank before removal?

No, it is generally recommended to have at least 500 litres of fuel in your old tank.This ensures that installers can bleed through the pipework to the boiler, checking the connections. Running the tank dry can cause sludge to be drawn into the pipework and pump, leading to costly repairs.

Q3: How long does the removal and installation process take?

‍The entire process typically takes a few days to a week, depending on the complexity of the removal and the specifics of the new heat pump installation. We will provide a more precise timeline based on your situation.

Q4: What should I do with the leftover oil in my tank?

The remaining oil can often be sold. Alternatively, some removal services will handle the disposal of the leftover oil as part of their service.

Q5: Are there any risks or safety concerns with removing an oil tank and boiler?

When done by a professional, the removal of an oil tank and boiler is safe. Our professionals engineers will follow strict safety protocols and environmental regulations to ensure the process is conducted without risk to you or the environment.

Q6: Will removing the oil tank and boiler damage my property?

‍Our engineers take care to minimise any potential damage to your property. They use specialised equipment and techniques to safely remove the tank and boiler. Any necessary repairs or adjustments to your property will be discussed with you beforehand.

Q7: What happens to the old oil tank and boiler after they are removed?

The old tank and boiler are recycled or disposed of in an environmentally responsible manner, this would typically mean a recycling facility to ensure that the materials are processed properly.

Q8: Can the space from the old oil tank be used for the new heat pump?

The space from the old oil tank can sometimes be repurposed for the new heat pump system, depending on the size and type of the heat pump. Your installer will assess the best location for the heat pump installation.

Q9: How can I prepare my home for the installation of a heat pump?

‍To prepare for the installation:

• Ensure clear access to the areas where the tank and boiler are located.
• Remove any obstructions or items that might be in the way.
• Discuss any specific requirements with your installer during the initial assessment.

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Installing an Air Source Heat Pump

One of the many objections customers have about installing a heat pump is the cost, because there is a lot of misinformation out there. The cost of a heat pump can actually be comparable to a boiler replacement after the grant from the Boiler Upgrade Scheme (which is £7,500), read our guides to both the costs of installing a heat pump and the many publicised concerns that people have about how a heat pump may disadvantage them.

Conclusion

Switching from an oil boiler to a heat pump is a wise choice for UK homeowners, both for the environment and for their wallets in the long run. Despite initial expenses, the advantages of lower running costs, decreased carbon footprint, and possible government incentives make it a valuable investment. With the UK's push towards zero emissions, the adoption of renewable heating solutions like heat pumps will become more prevalent and advantageous.

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