Heating costs are an annual conversation. But is oil-fired heating expensive, and what’s the alternative? Let’s take a look.

How Does Oil-Fired Central Heating Work?

Oil-fired central heating systems work by burning heating oil to generate heat, which is then circulated throughout a building. The system typically consists of several key components: an oil tank, a burner, a boiler, a heat exchanger, and a network of radiators or underfloor heating.

There are two types of heating oil:

• Gas oil (red diesel and 35-second oil)
• Kerosene (home heating oil or 28-second oil)

Kerosene is most commonly used in home central heating systems, while gas oil has more commercial uses.

The process begins with the oil tank, which stores the heating oil. The oil is pumped from the tank to the burner, located in the boiler; when the system is activated, the burner ignites the oil, creating a flame that heats the water inside the boiler. This is done by transferring heat from the flame to a heat exchanger, which in turn heats the water.

Once the water reaches the desired temperature, it is pumped through a series of pipes connected to radiators or underfloor heating systems located throughout the building. As the hot water circulates, it radiates warmth into the rooms. After the water cools down, it returns to the boiler to be reheated, completing the cycle.

The system is controlled by a thermostat, allowing users to regulate the temperature inside their home. Many modern oil-fired systems are highly efficient and can be combined with programmable thermostats to optimise energy use.

Oil-fired heating is typically used in areas where there is no access to mains gas, but it requires regular oil deliveries and maintenance to ensure the system runs efficiently and safely.

Is Oil Fired Central Heating Expensive?

Oil-fired heating can be relatively expensive, particularly when compared to gas or electric alternatives. The cost depends on various factors, including oil prices, system efficiency, and household demand.

Heating oil prices fluctuate based on global oil markets, often rising during the winter when demand is high, as well as when conflict occurs in oil-producing countries, affecting the global supply. Unlike natural gas, which is typically supplied through a mains network, heating oil must be purchased and delivered in bulk. This upfront cost can be substantial, especially when oil prices spike.

The efficiency of the oil-fired heating system also plays a significant role in its overall cost. Older systems tend to be less efficient, meaning they consume more oil to produce the same amount of heat. Upgrading to a modern, energy-efficient boiler can help reduce fuel consumption and lower heating costs over time, although it may seem expensive due to the upfront costs of replacing your boiler.

Additionally, regular maintenance is crucial for keeping an oil-fired system running efficiently. This includes servicing the boiler and ensuring proper insulation, both of which add to the annual cost but are necessary to prevent breakdowns and ensure optimal fuel use.

While oil-fired heating can be more expensive than other options, careful management of fuel consumption, upgrading systems, and keeping an eye on oil prices can help mitigate these expenses.

How Do You Run Oil-Fired Central Heating Cheaply?

Running an oil-fired central heating system economically requires a combination of efficient management, proper maintenance, and utilising alternatives effectively to reduce costs.

Firstly, oil-fired systems are generally more expensive than gas; in the UK, heating oil costs around £0.70-£1.00 per litre, with an annual consumption of 1,000-2,000 litres for an average household. This equates to £700-£2,000 per year, depending on oil prices and household size. In comparison, natural gas is usually cheaper, with households typically spending £600-£1,200 annually on heating.

To reduce costs, it’s important to maintain your oil-fired boiler regularly to ensure it runs efficiently. An efficient boiler can save around 10-20% in fuel consumption. Also, consider upgrading to a modern, energy-efficient model with better insulation.

Aga cookers, often used in rural homes, can also heat your home but tend to be energy-hungry, using about 40 litres of oil per week. These are more of a luxury and, despite their charm, may not be cost-effective for heating.

Fireplaces, particularly those burning wood or multi-fuel stoves, can supplement an oil-fired system if you spend a lot of time in one room and don’t necessarily need to heat your whole house, for example. This can be an excellent backup or complement to reduce oil consumption.

Other heating alternatives include electric heating, such as infrared or heat pumps. Ground-source or air-source heat pumps are more expensive to install but can drastically reduce running costs over time, providing a greener and often more affordable alternative to oil or gas heating in the long run, although with significant upfront costs.

Tips for Saving Money on Heating this Winter

When winter approaches, we all become concerned by the potential costs of heating our homes and look for ways to save money while remaining comfortable.

The most effective ways to save money on your heating are by:

• Using a programmable thermostat
• Insulating your home effectively
• Bleeding your radiators and maintaining your boiler

Let’s look at each in more detail so you can stay warm through winter without worrying about your finances.

Use a Programmable Thermostat

A programmable thermostat saves money on heating by allowing you to control when and how long your heating system operates, ensuring it runs only when necessary. By setting a schedule, you can reduce heating during times when you don’t need it, such as when you’re asleep or away from home. For instance, you can program the heating to lower during the night and turn on just before you wake up, or reduce heating during the day when the house is empty.

With smart thermostats, you can even control your heating through an app on your phone, so you can turn the heating off and on while you’re outside.

Additionally, even lowering the thermostat by just 1°C can reduce heating bills by up to 10%, so find the lowest temperature that keeps you comfortable to save money. The thermostat ensures that the system only heats when required, optimising energy use and preventing unnecessary heating, ultimately saving on fuel costs.

Insulate Your Home Properly

Insulating your home saves money on heating by reducing heat loss, allowing your heating system to work more efficiently. Without proper insulation, heat escapes through walls, roofs, floors, windows, and doors, requiring your heating system to run longer and use more energy to maintain a comfortable temperature.

Effective insulation, such as in the loft, walls, and floors, acts as a barrier, trapping heat inside your home. This means your heating system doesn’t have to work as hard to replace lost warmth, leading to lower energy consumption. Additionally, draught-proofing doors, windows, and chimneys further prevents warm air from escaping and cold air from entering.

Over time, retaining the heat like this leads to significant savings on heating bills while also improving overall comfort in the home during colder months.

Bleed Your Radiators and Maintain Your Boiler

Bleeding your radiators and maintaining your boiler can significantly save money on heating by ensuring that your system operates efficiently. When air becomes trapped in radiators, it creates cold spots, preventing them from heating up fully. This forces your boiler to work harder to maintain a desired temperature, using more energy and increasing fuel consumption.

Bleeding radiators removes this trapped air, allowing them to distribute heat evenly, which in turn helps your heating system work more efficiently. If you’re unsure how to bleed your radiators, you can always contact a maintenance person for a low cost.

Regular boiler maintenance is equally important. Over time, boilers can lose efficiency due to wear and tear or a build-up of debris, which reduces their ability to heat water effectively. Annual servicing checks for issues, cleans components, and ensures the boiler is operating at peak efficiency.

A well-maintained boiler consumes less fuel to provide the same amount of heat, leading to lower energy bills and preventing costly breakdowns that might require expensive repairs.

South West Gas Services

If you’re interested in upgrading or maintaining your heating systems, contact South West Gas Services for more information.

As experts in everything heating, you can find more about our services and tips for heating your home here, as well as information for landlords, including new fire regulations here.