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Oil Boiler Price Guide

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National Oil Boiler Costs

$2,500 Minimum Cost
$3,000 Maximum Cost

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Oil Boiler Price Guide

Heat your home efficiently with an oil boiler, which can perform the dual function of heating water and producing steam for heating the entire home. Oil boilers burn hotter than gas boilers to give you increased warmth with excellent energy efficiency ratings. Read on to learn more about the price of oil boilers, additional cost factors, such as materials and permits, and the cost of hiring an HVAC professional to install the oil boiler.

Table of Contents

  1. Oil Boiler Price
  2. Oil Boiler Cost Factors
  3. Oil Boiler Vs. Gas Boiler
  4. Oil Boiler Types
  5. Oil Boiler Brands
  6. DIY Or Hire A Pro?
  7. Advantages Of Oil Boilers
  8. Disadvantages Of Oil Boilers
  9. Boiler Ratings
  10. Find A Pro

Oil Boiler Price

Homeowners spend an average of $5,127 to install new boilers. The oil boiler itself may cost $2,500 to $3,000, but homeowners must also factor in additional fittings and hardware, which can cost up to $80. Hiring an HVAC professional costs an average of $1,246 to $1,775 for approximately 14 to 15 hours of work.

Oil Boiler Cost Factors

Oil boiler prices vary greatly depending on the type and size of the boiler, the efficiency rating and any other heating elements that require repairs or replacement. This makes it challenging to estimate the boiler installation costs associated with this project. For example, replacing an oil burner might cost $7,000, but additional factors increase the final price tag. Potential extra costs include:

  • Testing the tank for leaks: $500
  • Testing surrounding soil for leaks: $300 to $500
  • Cleaning up leaks from old boilers: $2,500 to $10,000 or more

Oil Boiler Cost Factors

Oil Boiler Vs. Gas Boiler

In addition to choosing a boiler type, homeowners must decide whether to choose a gas or oil-fired boiler. Some of the differences include the following:

  • Gas gets piped into the system directly from the city or gas company while oil gets delivered to the home in a truck.
  • Gas boilers require special hookups that cost an average of $1,000 to $1,500. Choosing a gas boiler requires homeowners to pay for a contractor to hook up the lines between the house and the meter, which costs an average of $500 to $1,000. Oil boilers don't require an extra hookup.
  • Gas boilers require chimneys to have special liners for exhaust, which costs another $750 to $2,000.
  • Removing an old oil tank costs anywhere from $500 to $3,000 depending on the location and whether or not the tank is buried.

Oil Boiler Types

The type of oil boiler that's best for you depends on a variety of factors. Look for boilers that fit your available space, usage, needs and budget. Popular options include combination boilers, system boilers and standard boilers.

Combination Boilers

These space-efficient boilers are popular among apartment dwellers and homeowners with small houses. The average cost of combination boiler is $1,300. These boilers don't have a storage tank. Instead, it receives water right from the water main. The benefit of this boiler is receiving hot water on demand, although using multiple taps at the same time affects water pressure.

System Boilers

Best for average-sized homes, system boilers deliver fast heating and good water pressure. The constant water pressure in a system boiler allows multiple users to enjoy hot water without a noticeable drop in water pressure. These boilers store water in a cylinder, and they heat it before diverting it to heaters and taps. The average cost of system boilers runs around $1,500.

Standard Boilers

Standard, or conventional, boilers heat water quickly in the pipes that run throughout the tank. Because they can handle a larger volume, these boilers are ideal for large homes and homes with floor heating or other high-demand usage. The cost of standard boilers average $3,500.

Oil Boiler Types

Oil Boiler Brands

Many of the best oil boiler brands boast 90% efficiency or better. Examples include:

  • Energy Kinetics Resolute and Frontier Models: Available through home heating professionals; pros can order directly from the company.
  • Peerless WB90-04-W, WB90-03-W and WBV-03-060-W Models: The Peerless website offers a search function to connect homeowners with nearby wholesalers who carry these boilers.
  • New Yorker FRHGSL: Contact the company directly or a home heating pro to find a local dealer.

Additionally, homeowners can visit their local home improvement store to peruse the selection of other popular brands and boilers. Examples include Safgard, Honeywell, Slant/Fin, Lennox and Beckett.

DIY Or Hire A Pro?

Unless you have extensive HVAC experience, this is a job that's best left to professionals. In addition to having the hands-on skills needed to safely and correctly install an oil burner, pros also troubleshoot problems during installation or perform oil boiler repairs.

Professionals can also navigate local laws and regulations, which may require a permit to replace or install an oil boiler. Permits cost anywhere from $50 to $300, while fire inspection fees typically cost $40 to $75.

Advantages Of Oil Boilers

Why would homeowners choose oil boilers over other types of furnaces? Oil boilers have three main advantages:

  • Higher BTU Output: Oil burners produce the hottest flames, which burn approximately 300 degrees Fahrenheit hotter than natural gas to provide the fast heating to keep the house warmer.
  • Safety: Fuel oil only ignites using the type of advanced system in an oil burner, and it isn't explosive, which makes it a safe home heating option.
  • Less Expensive Equipment: Heating systems that use oil burners cost less than other types of boilers and furnaces.

Advantages Of Oil Boilers

Disadvantages Of Oil Boilers

Having an oil burner comes with multiple benefits and advantages. It also has a few drawbacks:

  • Cost: Heating oil is one of the most expensive heating sources. Much of it comes from offshore sources, and the cost of oil varies greatly.
  • Supply: Using an oil burner requires the home to have a tank and regularly scheduled oil deliveries.
  • Care: Oil burning furnaces and boilers require more frequent maintenance than their gas or electric counterparts.

Boiler Ratings

The Federal Trade Commission mandates that new boilers display their ratings, which are measured using the boiler's annual fuel utilization efficiency (AFUE). This rating measures the ratio of the boiler's annual heat output compared to the amount of fossil fuel energy it consumes annually. For example, if a boiler has an AFUE of 85%, that means 85% of the fuel is used to heat the home while 15% escapes from the chimney and out of drafty areas.

The higher the AFUE, the more efficient the boiler's operation. Many modern oil burners operate with an AFUE of 85% to 95%. Factors that affect the AFUE of an oil burner include:

  • Home Insulation: Gaps, cracks and damaged insulation allow heat to escape through ceilings and walls. No matter how efficient the boiler, your temperatures will still feel cooler than expected
  • Ductwork: Obstructions and improper insulation causes ductwork to lose heat, which can translate to wasted energy in the amount of 10% to 50%.
  • Windows and Doors: Warm air rushes toward cool air. If the doors and windows of a home don't have a sturdy seal, heat escapes through these areas.

Find A Pro

Whether you're repairing, replacing or switching over to an oil burner, professionals can deliver the service and workmanship required for this project. Maximize safety and efficiency by connecting with a reliable HVAC professional to help get you started.

Get free estimates from local oil boiler contractors

Last updated on Nov 8, 2018

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