See also: Heat Pump Payback Period vs Gas Boiler Calculator
Efficiency is King
Boilers: Non-condensing oil boilers typically have an efficiency of around 60%. On the other hand, condensing boilers can be up to 92% efficient, in theory. But the real world efficiency for condensing boilers tends to be much lower. This is because condensing boilers have to be installed and set up in a special way to hit their efficiency potential. And most aren’t.
Heat Pumps: Heat pump efficiency varies widely, anywhere from 250% to 600%. Why such a wide range? As you might expect, the quality of the heat pump itself plays a role. But the biggest factor is system design and installation quality. So choose your installer wisely!
Either way, efficiency dramatically impacts energy consumption and therefore running costs.
Future Energy Prices
What will oil and electricity prices be in the future? Here are some considerations:
- Carbon tax: Scheduled to increase every year until 2030
- Depletion of the best oil and gas resources: The world is nowhere near running out of oil and gas. But the cheapest oil to extract (in liquid form, on land, and near the surface) is getting scarcer each year
The impact on prices:
| Factor | Impact on Prices | Reason |
| Carbon Tax Increases | Worse for oil | Oil boilers are much more carbon intensive than heat pumps |
| Depletion of the best oil and gas resources | Worse for oil | Ireland’s electricity supply is only part-dependent on oil and gas |
Bottom line?
Oil prices are likely to go up more than electricity prices over the long-term.
Heat Pump Installation Costs
Heat pump installation prices vary widely. So getting multiple quotes could save you thousands.
But remember that efficiency is the most important factor for payback period. So shop for quality first, and price second.
Non-Financial Considerations
Health: Oil boilers emit harmful carbon monoxide, nitrogen oxides, PM2.5, and PM10 near your home
Cooling: Some heat pumps can cool as well as heat. This is especially useful in modern houses with lots of glazing, which can be prone to overheating in summer
Convenience: Heat pumps run off your existing electricity supply, so no need to arrange oil tank refills
Garden space: Switching from oil to heat pump means you free up garden space where the oil tank once was
