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Choosing the appropriate system is important for both comfort and cost efficiency for heating homes in the UK. Gas boilers, oil-fired systems, electric heaters, or heat pumps are the main options for households. What makes each of these heating systems work differently? Each has its own pros and cons. Home heating systems in the UK that use gas boilers are known for being reliable and efficient. They use natural gas.
Areas without natural gas often use oil heating systems, which need a fuel tank to store the fuel. Homes without access to gas or oil can benefit from electric heating, which uses electricity to make heat.
The UK’s move towards more environmentally friendly sources has also affected the heating industry, with a government ECO4 scheme free boiler grant pushing towards more energy-efficient systems to reduce the dependence on fossil fuels. This transition aligns with environmental goals and reflects UK households’ changing needs and values. The Energy Obligation Scheme (ECO4) is designed to support low-income households who can’t afford high-cost heating upgrades and running costs of high bills.
The consideration extends beyond the system type to include factors such as efficiency and energy source, which substantially impact the long-term costs and sustainability of heating a home.
The UK government is striving towards a carbon net zero target by 2050, which you should consider if you’re deciding whether to choose gas or electric.
Key Takeaways
- Choosing the right heating system in the UK requires evaluating gas, oil, and electric options.
- Energy efficiency and the environmental effects of heating systems are highly significant considerations.
- Long-term prices and sustainability play crucial roles in the selection of the perfect home heating system.
Types of Heating Systems
Choosing a heating system for your home involves various factors, such as efficiency, cost implications, and environmental impact. Each system, whether gas, oil, electric, or renewable, has its own pros and cons.
Gas Boilers
Gas boilers are popular for UK homes linked to the main gas network. An efficient gas boiler heats water quickly, providing central heating and hot water on demand. They come in various types, including combo, system, and standard boilers, allowing flexibility to fit different family needs.
Oil Boilers
Homes off the gas grid often use oil boilers requiring an on-site oil tank. The fuel cost can be unpredictable, but oil stoves remain a solid choice for rural places. They tend to be more efficient than gas boilers. But running costs and upkeep can be more expensive due to fuel delivery and tank cleaning.
Electric Heating Systems
The electric boilers and heaters are ideal for smaller homes or flats, especially where gas or oil is not a choice. Electric heating systems are often considered safer due to the lack of a flue. The risk of carbon monoxide leaks. However, power is usually more expensive per kWh than gas or oil, affecting working costs.
Renewable Alternatives
Renewable heating systems, such as heat pumps (air-source and ground-source) and biomass boilers, rely on sustainable energy sources. They can greatly lower carbon pollution and offer a way to a more sustainable future, though the upfront construction costs are higher than standard boilers.
Let’s Explore The Running Costs Comparison of Oil, Gas & Electrical Heating
- Recently, we found 500 litres of heating oil (kerosene) at a price of £426 inclusive of VAT. Which represents a price of 85.2p per litre. One litre of petrol produces a maximum energy output of 10.35 kWh. With a current, ultra-efficient heater with an efficiency of 95%, one litre of fuel would produce 9.8 kW of useful heat energy. Given our price, the running cost for oil-fired heating is 8.7p per kWh.
- An estimate of current gas prices suggests a price of about 10.3p per kWh. Assuming the same gas boiler efficiency as a contemporary oil-fired boiler (95%), this corresponds to a yearly cost of 10.8p per kWh for gas heating. Since 2023 when the Government’s Energy Price Guarantee will increase from £2,500 to £3,000, the operating cost of gas heating will climb to 13.0p per kWh. If these prices look expensive, they nevertheless have considerable government support for pricing (while heating oil has no such support). Without the Government’s Energy Price Guarantee, expenses would be determined by Ofgem’s price ceiling, which is expected to climb to £4,279 in January 2023. Without the Government’s Energy Price Guarantee, the yearly cost for gas heating would be 18.5p per kWh. This is more than twice (212%) the total cost of oil-fired warmth.
- Those expecting a big drop in future gas and energy prices may be surprised. Out to 2030 and beyond, Cornwall Insight projects that energy prices will stay about three times their five-year pre-2021 historic average. While it is hard to predict oil costs, oil-fired heating may stay cheaper than gas heating in the near future.
- Most types of electric heating are much more expensive than oil or gas heating, including electric store heaters. Recent rises in energy prices are making most electric heaters totally unaffordable. Electric heaters often have different names attached to them – such as electric radiators, fan heaters, oil-filled radiators, ceramic heaters, and ground heating – but they all work in a similar way. They turn electrical power to heat with the same basic limitation – an exact maximum efficiency of 100%. At most, 1 kW of raw power will only create 1 kW of warmth. Even if your electric heating gives a maximum efficiency of 100%, high electricity prices mean sky-high heating costs.
- The home price for electricity is about 35p per kWh, which means that the minimum running cost for electric heating is currently 35p per kWh. This is over four times the average cost of oil-fired heating (with an ultra-efficient boiler). In 2024, when the Government’s Energy Price Guarantee will increase from £2,500 to £3,000. The running costs for electric heating will increase to 42p per kWh – nearly five times the running cost of oil-fired heating. Beyond the Government’s Energy Price Guarantee, prices would be set by Ofgem’s price cap, and the running cost of electric heating would be an eye-watering 60p per kWh from January 2023. This is just under seven times the cost of oil-fired warmth.
Conclusion
We highly recommend that homeowners operating an old. Inefficient central heating oil (or gas) boiler should change to a contemporary, ultra-efficient type. That’s because they are paying considerably more than they need to. Replacing an oil boiler running at 60% efficiency with one operating at 95% efficiency makes a substantial difference in the cost per kWh. An old boiler would now cost 13.8p per kWh for oil-fired heating, compared with just 8.7p per kWh for an ultra-efficient oil-fired boiler. With high gas costs, the argument for upgrading an ageing gas boiler is overwhelming. From April 2023, operating an old gas boiler (with 60% efficiency) will cost 20.6p per kWh. Compared with 13.0p per kWh for a gas boiler (with 95% efficiency). The government established the boiler initiative to handle these challenges without external involvement.
