How Much Does Oil Tank Installation Cost?

Oil Boiler Installation Cost Simple Guide

If you’re planning an oil boiler installation, whether for a new build, a renovation, or upgrading your current system, it’s important to understand the factors that affect the cost. Below, we break down the prices of different types of boiler and some tips to save money on the way.

We'll cover the following topics in this pricing guide:

1. Average Oil Boiler Installation Costs
2. Oil Boiler Professional Hiring Costs
3. Different Types of Oil Boiler & Costs
4. Is An Oil Boiler Efficient to Run?
5. How to Save Money on Your New Oil Boiler
6. Find Local Oil Boiler Installation Professionals on MyBuilder
7. FAQs Frequently Asked Questions

Average Oil Boiler Installation Costs

What is an oil boiler? Well, if your home is not connected to gas, an oil boiler is a central heating appliance that burns heating oil to heat water for things like showers and radiators. They are less common than gas boilers, but they are suitable for rural areas for instance.

The average cost of oil boiler installation is £4,500, but knowing how the costs can differ will help you to feel prepared. For example, the type of oil boiler you choose, to the expenses in the area you live in.

Average costs of installing an oil boiler depending on what you need:

Task	Average Cost (£)
Oil Boiler	£2,500
Flue Kit	£400
Oil Storage Tank	£1,000
Pipework and Fittings	£500
Thermostat and Controls	£200
Heating System Flush	£250
Heating Engineer (Installation)	£35 per hour
Electrician (Wiring and Controls)	£30 per hour
Plumber (Pipework)	£30 per hour

You may also need to remove your old boiler and get rid of it after the installation happens. You can read this waste disposal cost guide if you need more information on getting your old boiler removed.

Oil Boiler Professional Hiring Costs

A new oil boiler installation requires the expertise of professionals to ensure safety, efficiency, and compliance with building regulations.

Several trades are usually involved, each with different responsibilities and rates, so it’s important you know about these so you can calculate the final costs.

Boiler installation professionals cost:

Heating engineer (£25–£50 per hour): The main tradesperson you’ll need. They handle the central installation, set up the boiler, and connect it to your heating system. Their work ensures the boiler runs efficiently and safely.

Electrician (£20–£40 per hour): Responsible for wiring, thermostats, and controls. They make sure the electrical components are properly installed and meet safety standards.

Plumber (£20–£40 per hour): Often needed for pipework adjustments, water connections, or tank installations. Their role is especially important if the system requires rerouting pipes or upgrading fittings.

Since an oil boiler installation typically takes 2–3 days, you can expect total labour costs to fall between £1,000 and £2,000. If you are unsure which trades you need to hire, you can get in touch with a professional on MyBuilder.

Simply post your job online, with some info on what you need, and then a tradesperson in your local area will be in touch with their expertise.

Talk to a professional

Different Types of Oil Boiler & Costs

The three main types of oil boilers are conventional (or regular), system, and combi (combination) boilers. Each type has unique features that impact the installation cost and overall efficiency.

Take a look at the benefits and costs of each boiler type here:

Conventional oil boilers

These boilers are ideal for large homes with multiple bathrooms. They use a separate hot water cylinder and cold water storage tank, typically located in the loft. The primary advantage of conventional boilers is their ability to supply hot water to multiple outlets simultaneously. On average, installing a conventional oil boiler can cost between £2,000 and £5,000.

System oil boilers

System boilers are somewhat similar to conventional boilers but integrate the heating components into the unit itself. They still require a separate hot water cylinder but take up less space and are more efficient in terms of heat loss. Installation costs for system boilers typically range from £2,500 to £5,000.

Combination oil boilers

Combination boilers are an all-in-one solution, providing both heating and hot water directly from the boiler. They do not require a separate cylinder or tank, making them compact and suitable for smaller homes or those with limited space.

The installation is usually simpler and cheaper, with costs ranging from £1,000 to £3,500. However, they may struggle to provide hot water to multiple outlets simultaneously in larger households.

If you are not sure which boiler to choose, you can post your job on MyBuilder and find local boiler companies who are ready to help. Or, if you want to know more about different boiler options, you can find a more general boiler installation cost guide here.

Find local boiler companies

Is an Oil Boiler Efficient to Run?

Investing in a high-efficiency oil boiler can reduce your running costs and environmental impact.

Boilers are rated by efficiency, with ErP A-rated models (90%+) converting more fuel into heat and delivering greater savings than B-rated units (86–90%).

While A-rated systems may cost more upfront, they can lower fuel bills by up to 30% compared to older models and may qualify for grants or incentives.

Households typically spend £500 - £1,200 per year on heating oil, depending on usage and efficiency, with extra savings possible through proper tank maintenance and waste prevention. Using smart thermostats and controls can further optimise efficiency and reduce energy use.

How to Save Money on Your New Oil Boiler

With some planning and smart decision-making, you can significantly reduce your boiler installation cost without compromising on quality.

Here are some top tips to help you save money:

Get multiple quotes: Compare prices from several oil boiler installation services to understand market rates and strengthen your negotiating position. Aim for the best balance of cost and quality, not just the cheapest option.

Choose the right size boiler: Select a unit that matches your home’s heating needs. An oversized boiler costs more upfront and may push up energy bills.

Schedule regular maintenance: Annual servicing has a small cost but helps prevent breakdowns, avoids expensive repairs, and extends the boiler’s lifespan.

Find Local Oil Boiler Installation Professionals on MyBuilder

Turn the overwhelming task of finding the right boiler installation professionals into a stress-free process with MyBuilder. It’s easy to post your job today and get in touch with local tradespeople ready to tackle your job, whether you simply need advice, or are looking for a new oil boiler installation, fast.

FAQs Frequently Asked Questions about Oil Boiler Installation Costs

How long does it take to install an oil boiler?

Installing an oil boiler typically takes 1 to 3 days. The exact time depends on the complexity of the installation, including any necessary modifications to your home’s plumbing or heating system.

Do I need planning permission to install an oil boiler?

In most cases, you do not need planning permission to install an oil boiler. However, if you live in a listed building or a conservation area, you may need to get special permission. It's always best to check with your local planning authority.

Can I replace my old boiler with an oil boiler?

Yes, you can replace an old boiler with a new oil boiler. However, it’s important to assess whether an oil boiler is the best choice for your home, considering factors such as the availability of oil supply, space for an oil tank, and long-term cost implications. Always consult with a tradesperson installer to make an informed decision.