Boiler prices: how much does a new boiler cost?

If your boiler is on its last legs you’ll need to know how much it will cost to replace.

The price of a new boiler can vary greatly depending on the size and type, so make sure you choose the right one for your home.

Here’s a look at the average prices for a new boiler…

If your boiler is on its last legs you’ll need to know how much it will cost to replace.

The price of a new boiler can vary greatly depending on the size and type, so make sure you choose the right one for your home.

Here’s a look at the average prices for a new boiler…

Andy Webb
Insurance expert
7
minute read
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Last Updated 15 AUGUST 2022

When should you replace your boiler?

Typically, a boiler should last between 10 and 15 years, but modern boilers are proving to be far more energy efficient than older models. So if your boiler only has a few years left on the clock, you might want to consider replacing it with a newer model.

A new boiler won’t be cheap, but it could be a worthwhile investment in the long run. A modern, energy-efficient boiler can bring significant savings on your energy bill. Although this will depend on how efficient your old boiler was, the size of your home and how much you’re currently paying. And you’ll need to offset any savings against the cost of the new boiler.

What can affect the cost of a new boiler?

The price of a new boiler can vary considerably and depend on: 

  • The type of home you have (terraced, semi-detached etc.)
  • How many rooms there are in your home
  • Where you live (prices in London and the South East are generally higher)
  • The type, model and capacity of the boiler you choose
  • The complexity of the installation.

New boiler price range

The following table shows the approximate price ranges for the most popular types of boiler in the UK**:

Boiler type

Price range

Combi

£500-2,600

Condensing

£1,300-2,500

Conventional

£400-2,000

System

£500-2,500

Electric

£1,500-2,500

Biomass

£7,000-13,000

**Please note the table does not include installation costs.

Installation costs 

Don’t forget to consider the installation costs. These can range from £650-2,500 depending on whether you’re replacing the same type of boiler as your old one or opting for a different system. If you choose to have a ground source heat pump installed, prices will vary according to whether you’re having a vertical or a horizontal system.

This might also be more expensive than typical boiler installation because of the extra work required.

If you’re having a new boiler installed in the same place as the old one and it’s a simple job, the cost of installation is likely to be cheaper than if you decide to move the boiler to another location or need to upgrade the pipe system.

Make sure you choose a reputable company to fit your new boiler, and have any gas work carried out by a Gas Safe engineer.

Grants and discounts to help with new boiler costs

You may be able to get financial help with paying for a new boiler. For those keen on switching to cleaner energy, there’s the Boiler Upgrade Scheme (BUS). Under this new government initiative, launched in April 2022, you can apply for a grant towards the cost of installing a low carbon heating system. 

It covers three types of sustainable heating:

Grants are available to homeowners and private landlords with properties in England or Wales, and can only be used to replace traditional fossil fuel heating systems like gas, oil or electric.   

With some boiler cover plans you might be offered a discount on a new boiler when your existing boiler no longer works. Hometree, Compare the Market’s boiler cover partner, offers a 15% discount on the price of a new boiler if they can’t fix your old one – even on its lowest-priced plans. On a £500 boiler this could save you £75 and on a £2,500 boiler could save you £375.

If you’re on a low income or receive government benefits, you might be eligible for a free boiler under the Energy Company Obligation (ECO) scheme. 

Which type of boiler is right for you?

Although budget is a major factor when choosing a new boiler, you should also consider how big your home is and how much hot water you need. 

Combi boiler

Approximate price range: £500-£2,600
One of the most popular types of boiler in the UK. Combis are efficient and compact, and can run on gas or electric.  They can often be stored in a cupboard and are ideal for smaller homes.

Combis may not be suitable for larger households with multiple bathrooms, as the water pressure is weak when run from more than one source.

Condensing boiler

Approximate price range: £1,300-£2,500
One of the most efficient types of boiler, condensing boilers use the wasted heat left in the flue to reheat cold water.

Condensing boilers can run on gas or oil. Water pressure is good, so they’re recommended for mid-sized homes with more than one bathroom.

Conventional boiler

Approximate price range: £400-£2,500
Conventional boilers can run on gas or oil and have two water cylinders: one for heating the water and one for storing the water.

Thanks to the large amount of storage and good water pressure, conventional boilers are ideal for larger homes where a lot of hot water might be used at the same time.

System boiler

Approximate price range: £500-£2,500
System boilers heat water directly from the mains and have a storage cylinder to ensure a good supply of hot water.

System boilers are a good option for large households that need plenty of hot water without a drop in water pressure.

Electric boiler

Approximate price range: £1,500-£2,500
Electric boilers are an option for areas that don’t have a gas supply. Compact and easy to install, they can be placed almost anywhere in the home.

As they don’t need a flue or gas pipes, installation costs tend to be much cheaper. However, running costs can be higher than a traditional gas boiler, in some cases up to 30%. Because of this, they’re more suitable for small homes that don’t need a large supply of hot water.

Biomass boilers

Approximate price range: £7,000-£13,000
Biomass boilers are the most expensive type of boiler to buy new. But they’re also one of the most eco-friendly and efficient systems to run. Using wood pellets, chips or logs, a biomass boiler could save you between 30-50% on fuel consumption over the year.

If you can afford the initial costs, a biomass boiler could prove to be a great long-term investment.

How much money can I save with a new boiler? 

Older boilers (particularly those 10 years old or more) are less efficient than new ones, so upgrading can make a real difference to your energy costs. Savings can vary depending on fuel type and energy prices, but the table below gives you a general idea of how much you can expect to lower your bills by.

According to the Energy Saving Trust, this is what fitting a new A-rated boiler could save you each year, in comparison with lower-grade systems^^:

Property type

Grade G boiler

Grade F boiler

Grade E boiler

Grade D boiler

Detached

£580

£405

£315

£260

Semi-detached

£380

£265

£235

£215

Mid-terrace house

£325

£225

£200

£180

Mid-floor flat

£150

£105

£90

£80

Bungalow (detached)

£300

£210

£185

£170

Of course, this saving should be offset against the cost of replacing the boiler, so it might be a while before you recoup your initial spend. But if you decide to spread the cost over 10 years, your monthly savings could be higher than your monthly payments, so your boiler would pay for itself.

^^Figures based on fuel prices as of April, 2022.

Frequently asked questions

How does the Boiler Upgrade Scheme work?

The Boiler Upgrade Scheme (BUS) has been set up by the government to provide homeowners with financial help towards the cost of replacing an old fossil fuel system with a new low carbon boiler that runs on heat pumps or biomass energy.

To benefit from the scheme, you’ll need to find an MSC-certified installer in your area who is able to carry out the work to the correct standards and can advise on which type of system is best for your home. They will apply for a grant of up to £6,000 on your behalf and deduct it from your bill.

When is the best time to replace my boiler?

If your boiler keeps breaking down, you should get it checked and replaced as soon as possible. It’s usually better to get the work carried out in summer because boiler engineers are less busy at that time of year. And you won’t be cold while your new boiler is being installed.

Are there cheaper alternatives to getting a new boiler?

Before you decide to buy a new boiler, first try to cut your heating costs by having your current boiler serviced, especially if you haven’t had this done for a while. A service will give it a good clean out and identify any problems. You could also improve your energy efficiency by draught-proofing your home and insulating your walls and loft.

Check out our energy saving tips too.

What sustainable solutions are available compared with a new gas boiler?

The UK government has said that no new homes should be connected to the gas grid after 2025. Replacing them will be air source heat pumps and ground source heat pumps, which work like refrigerators in reverse. Installation can be expensive but they’re low maintenance and typically have a longer lifespan than a boiler. They’re also more environmentally friendly than fossil fuels and you can get money off the cost of installing them if you apply for a government grant under the BUS scheme.

Some people may prefer to switch from gas to electricity for heating hot water, as the amount of electrical power produced from renewables continues to increase. 

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