As with LPG, oil systems typically combine an external oil tank, oil-fired boiler feeding a central heating system. Running costs can be high and fluctuate on a seasonal basis. A large outdoor space is required for the storage tank. A supplier may fund the installation of the tank in exchange for exclusive rights to supply the property with oil.
Pros: A well-developed supply chain usually with enough suppliers to choose from. The central heating part of the overall oil heating system will have similar installation costs as a mains gas system. Oil works well with the standard boiler/wet radiator central heating system. Automated oil reordering with sensors and telemetry available from some suppliers – although these may tie the user to a single supplier.
Cons: High running costs when oil is expensive, space requirement – space required outside for the tank, oil prices and delivery costs are seasonal – a delivery will cost more in the winter, can be difficult to switch suppliers.
Indicative annual cost: with an older boiler – £855; with a new condensing boiler – £703