If your home runs on heating oil, an air source heat pump is likely to save you money as well as carbon. Oil is more expensive per unit of heat than mains gas and its price swings with world markets, while a heat pump delivers three to four units of heat per unit of electricity.
Running costs per day
| System | Fuel price (example) | Approx. cost per day |
|---|---|---|
| Oil boiler (85%) | 7p/kWh | £2.71 |
| Heat pump, standard tariff | 25p/kWh | £2.36 |
| Heat pump, heat pump tariff | 15p/kWh avg | £1.41 |
Three-bed home, 12,000 kWh of heat a year, SCOP 3.5. Standing charges excluded.
Installation costs
A replacement oil boiler typically costs £3,000 to £5,000. An air source heat pump costs £8,000 to £16,000, but the £7,500 Boiler Upgrade Scheme grant brings that down to £500 to £8,500, often close to the price of a new oil boiler.
Other benefits of leaving oil
- No deliveries, no running out in a cold snap, no tank to maintain.
- No price spikes tied to global oil markets.
- Garden space back once the tank is removed.
- Lower emissions: oil is one of the most carbon-intensive ways to heat a home.
Making the switch
Off-gas homes are usually ideal for heat pumps. Start an oil-to-heat-pump quote and an MCS-certified installer will survey your home, plan tank removal and handle the grant.
Sources
Grant amounts, VAT rules and eligibility are set by government and the scheme administrators. We check them against these primary sources:
- Apply for the Boiler Upgrade Scheme (GOV.UK)
- Energy price cap and standing charges explained (Ofgem)
- Microgeneration Certification Scheme (MCS)
New to the jargon? See the heat pump glossary, or browse the heat pump FAQs.
Written by the GetASHP team. Prices and grant details checked 23 October 2026; always confirm current figures with your installer.
