Affordable green heating for rural homes campaign

Information for oil heating customers

If you would like to take action to reduce emissions from your home, or you have heard about government’s plans to phase out fossil fuel heating during the 2020s, you may be looking to replace your existing oil boiler.

If you live in one of the 3% of oil-heated homes with good energy efficiency (EPC Band A-C), you should be able to install any of the low carbon heating options currently recommended by government. These include:

TechnologyAverage installation cost
Ground / Water Source Heat Pump£22,507
Air Source Heat Pump£10,918
Biomass Boiler£16,114
Solar Thermal£4,511

* These figures are taken from the average cost of certified domestic Renewable Heat Incentive (RHI) installations, reported to the Microgeneration Certification Scheme (MCS).


If you live in one of the remaining 97% of oil heated properties with poor energy efficiency (EPC Band D-G), you will probably need to improve your insulation before getting either a Ground/Water or Air Source Heat Pump installed. Depending on the condition of your home, you may need to install some or all of the following measures:

Energy efficiency measuresAverage installation cost
Improved loft insulation£180 to £3,500
Replacement windows and external doors£1,200 to £10,000
External wall insulation£4,300 to £20,000
Cavity wall insulation£300 to £1,200
Internal wall insulation£2,500 to £11,600
Floor insulation£550 to £900

* These figures come from the 'BEIS, What does it cost to retrofit homes report'.


Good insulation improves the performance of any heating system, reduces carbon emissions and cuts energy bills, so should be part of all home decarbonisation plans. How much insulation you need will depend on how your home was constructed and what improvements have been made since it was built.

Research suggests the true overall cost of switching most oil heated homes to one of government’s recommended low carbon heating technologies is likely to be between £10,900-£60,000, depending on which technology is chosen and whether additional energy efficiency improvements are necessary.

Concerned about the cost?

If so, you are not alone - oil heating users urgently need more affordable low carbon options. It is time to join OFTEC’s campaign to drive down costs and provide more choice for consumers like you.

Find out easy ways you can support OFTEC’s campaign for affordable green heating solutions.

Find out about OFTEC’s work to introduce a renewable liquid fuel to replace heating oil.

Got a question? Check out our Q&A on renewable liquid fuels.

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