Replacing an oil boiler with a heat pump

If you heat your home with oil, a heat pump is the natural upgrade — and 2026 is a good year to make the move. From 21 July 2026, off-grid homes replacing an oil boiler can claim a £9,000 government grant, the running costs are often lower from day one, and the oil deliveries, tank and price swings all disappear.

Here's what switching from oil to a heat pump actually looks like, and why it tends to make more sense for off-grid homes than almost anyone else.

Why oil homes are the best fit

Heat pumps and oil boilers both suit homes off the mains gas grid — but only one of them is cheap to run and low carbon.

An oil boiler burns fuel at around 90% efficiency: for every unit of energy in the oil, you get a little less back as heat. A heat pump doesn't burn anything — it moves heat from the outside air, delivering around three units of warmth for every unit of electricity. That gap is why the switch pays off, and why off-grid homes on expensive oil often see the clearest benefit. (If you'd like the mechanics, here's how heat pumps work.)

The £9,000 grant for off-grid homes

The Boiler Upgrade Scheme pays £7,500 towards a heat pump across England and Wales. From 21 July 2026, that rises to £9,000 for homes off the gas grid replacing an oil or LPG boiler — a temporary uplift confirmed to 31 March 2027.

That's a significant sum off the upfront cost, and it's aimed squarely at homes like yours. The grant is paid to your installer and comes straight off your quote. With the Ample Heat Pump Plan, we handle the application for you. You can check the finer points on heat pump grant eligibility.

Running costs: oil vs heat pump

Oil prices move with the market, and a typical home gets through 1,500 to 2,000 litres a year — often £1,000 or more in fuel, before you factor in a boiler service and the cost of the tank over time.

A heat pump for the same home usually costs somewhere around £800 to £1,200 a year to run, and less again on a dedicated heat-pump electricity tariff. Because you're buying electricity rather than oil, there are no deliveries to schedule, no tank to refill and no watching the price per litre. For a fuller breakdown, see how much a heat pump costs.

Lower carbon, by a wide margin

An oil boiler in a typical three-bedroom home produces several tonnes of carbon a year. The same home on a heat pump produces a fraction of that, and it keeps falling as the grid gets greener. It's a genuinely low-carbon way to heat a home that has, until now, had few good options.

Will it work in an older, rural home?

Usually, yes — and better than people expect. Modern air source heat pumps work in temperatures well below freezing, which matters in exposed rural spots. The keys are sizing the system correctly and making sure your home holds its heat reasonably well.

Older homes sometimes need a little preparation — a few larger radiators, or some insulation — to get the best from a heat pump. A proper heat-loss survey tells you exactly what your home needs, so there are no surprises. Often it's less than people fear.

What the switch involves

Moving from oil to a heat pump is a managed project, not a disruption. The oil boiler comes out, the heat pump goes in outside, and the system is connected to your existing radiators or underfloor heating and a hot water cylinder. A typical install takes a few days.

With the Ample Heat Pump Plan, one company handles the whole thing — the survey, the £9,000 grant application, the finance, the install through an MCS-certified installer, and the paperwork — all protected, from first call to feet-up. You're not left project-managing a trade you don't know.

Frequently asked questions

Can I replace my oil boiler with a heat pump? Yes. Oil-heated homes are among the best suited to heat pumps, and from 21 July 2026 off-grid oil homes can claim a £9,000 grant towards the switch.

Is a heat pump cheaper to run than an oil boiler? Usually, yes. A heat pump's efficiency means running costs are often lower than oil from day one, and lower still on a heat-pump tariff — with no oil deliveries or tank to manage.

How much does it cost to replace an oil boiler with a heat pump? An air source heat pump typically costs £8,000–£14,000 installed, less the grant. For eligible off-grid oil homes, the £9,000 grant brings that down substantially.

Do heat pumps work in rural, off-grid homes? Yes. They work in cold and exposed locations, down to well below freezing. Correct sizing and a home that holds its heat are what matter most.

What happens to my oil tank? Once the heat pump is running, the oil boiler and tank are no longer needed. Your installer can advise on safely decommissioning and removing them.

See what you'd save

The clearest way to weigh up the switch is to see the numbers for your own home.

Get an instant estimate in minutes — no survey, no obligation — and be one step closer to a warmer home, off oil for good.