Is Boiler Replacement Cheaper Than Electric Heating?
Energy costs are among the biggest sources of concern for all homes within the UK. As fuel costs fluctuate and more and more homes turn to electric heating, government regulations encouraging people towards clean heating options have given rise to a single pressing question being asked by more and more homeowners:
“How much will it cost to replace my old boiler compared with an electric heating system?”
It depends on your house, your needs, and what you are considering. Although gas boilers are still common in the UK, more modern methods, including storage electric heaters and stand-alone electric radiators, have become very common, particularly in off-gas apartments and new build houses.
This guide breaks down what the actual cost difference is, which option will save more money, and ways in which the government helps. There are many free boiler replacement grant and free electric storage heater grants that can make it more affordable.
Upfront Cost: Is a Boiler Replacement Cheaper?
If your house is already supplied with gas, then an old boiler replacement will be more cost-effective compared to an overall electricity-based heating solution.
Cost of Gas Boiler Replacement
- Standard cost: £2,500–£4,000
- Includes boiler, labour, and new smart heating controls
- Pipework typically remains unchanged
However, if you are eligible for a Free Boiler Replacement Grant under ECO4, then the price could be as low as £0.
That’s because ECO4 includes:
- A new A-rated boiler
- Full Installation
- Heating controls
- Safety checks
- Waste removal
To people who belong to low-income households, it would be the cheapest alternative for them.
Cost of Switching to Electric Heating
In case you decide to replace your old heaters with electric storage heaters or direct electric radiators, there are possible disadvantages you might encounter:
- £3,000–£6,000 for whole-house installation
- Rewiring costs in older homes
- New consumer unit (fuse box) upgrades
- Removing old wet radiators
It should be noted that this increases the initial cost of an electric system.
Nevertheless, you may be eligible for the Free Electric Storage Heater Grant under the ECO4 scheme, which would pay for it for low-income and vulnerable households.
Upfront cost winner:
Boiler replacement (especially with a Boiler Replacement Grant)
Running Costs: Gas vs Electric Heating
Although it might be easier to maintain an electric heating system, it costs significantly more in the UK.
Gas Running Cost Per Hour
- Gas is much cheaper per kWh
- Modern A-rated boilers can reach almost 90–94% efficiency
- Heating a 3-bed home typically costs between £800 and £1,200 per year
If your boiler is old, the running cost will be much higher, which is why boiler replacement helps reduce long-term spending.
Electric Heating Running Costs
The price for electricity is 3-4 times higher compared with that for gas. Even with proper insulation, electric heating may be relatively costly.
Typical running costs:
- Electric radiators: £1,500–£2,500 per year
- Electric storage heaters: £1,200–£1,800 per year
- Smart electric heaters: £1,000–£1,600 per year
Storage heaters may be more affordable because they rely on low-cost off-peak rates, but they are still more expensive than gas.
Running cost winner:
Gas boiler heating
Maintenance Costs: Which System Costs Less To Maintain?
Maintenance costs are becoming an increasingly common area:
Gas Boilers
- Requires an annual Gas Safe service
- Cost: £70-100 per year
- Parts may wear out
If the boiler is old, repairs can be frequent and expensive.
Electric Heating
- Electric heaters have fewer moving parts
- No yearly safety checks
- No flue, no gas pressure, no pipes
- Very low maintenance
Electric systems almost always win here.
Maintenance cost winner:
Electric heating
Lifespan: Which System Lasts Longer?
Boilers
- Lifespan: 10–15 years
- Harder to maintain as they age
- Gas components can fail over time
Electric Heating
- Lifespan: 15–20 years
- Very few parts that break
- No corrosion or combustion issues
Lifespan winner
Electric heating
Installation Difficulty: Which Is Easier to Install?
Boiler Replacement
Replacing a boiler can be easy if your house already uses gas. All that the engineer needs to do is replace the unit and check if it works properly.
Time required:
- 4–8 hours to install
- 1 day total with testing
Electric Heating
Electric heating can require:
- New wiring circuits
- Larger fuse box
- Removal of old radiators
- Re-plastering after cable routes
- Possible flooring work
This makes installation slower and more disruptive.
Installation winner:
Boiler replacement
Energy Efficiency: Which System Is Better for the Environment?
Gas Heating
- Produces carbon emissions
- More efficient with new boilers, but still fossil-fuel-based
Electric Heating
- Zero emissions at home
- Cleaner as the UK grid moves to renewable energy
- Works well with solar panels
Electric systems are more future-friendly, especially for Net Zero goals.
Eco winner:
Electric heating and modern condensing gas boilers.
Comfort & Heat Quality: Which Feels Better?
Gas Boilers
- Consistent whole-home heat
- Good for larger houses
- Works well with radiators
- Fast response time
Electric Heating
- Heaters warm rooms individually
- Good for small homes or flats
- Some systems heat slowly
- Harder to heat large, older UK homes
Comfort usually depends on home size. For many families, boiler heating gives warmer, more even heat.
Comfort winner (for most homes):
Boiler heating
Will Gas Be Banned? Should I Avoid Replacing My Boiler?
There is no 2025 gas boiler ban for existing homes. But here is the real situation: As of the upcoming years, say 2026, new housing will not be eligible to have gas boilers. Existing houses can continue to use and replace gas boilers beyond 2025.
ECO4 continues making gas boiler replacement costs eligible for payment until 2026. Thus, it will still be safety-assured, supported, and affordable to replace the old boiler this year.
So, Which Is Cheaper Overall?
Here is the simple answer:
Gas Boiler Replacement is Cheaper in Most UK Homes
- Lower installation cost
- Cheaper running cost
- Better for larger or older houses
- Supported by the Boiler Replacement Grant
- Quick installation
- Works with existing radiators
Switching to electric heating is usually only cheaper if:
- You live in a small flat
- You have excellent insulation
- You rely on off-peak electricity
- You qualify for an Electric Storage Heater Grant
- You want low-maintenance heating
As far as an average family within the UK is concerned, and more so for those who have high energy bills, an old boiler replacement would still be considered more cost-effective.
Government Support: How to Reduce Costs Even More
Boiler Replacement Grant
This grant helps low-income households upgrade old, inefficient, or broken boilers for free under ECO4.
You may qualify if:
- You receive certain benefits
- Your income is low
- Your home has an EPC rating of E, F, or G
- Your boiler is old (pre-2005) or broken
- You qualify through LA Flex
This covers a brand-new A-rated boiler and installation.
Electric Storage Heater Grant
If your home is off-gas or uses old electric heaters, you may get:
- New high-heat-retention storage heaters
- Improved efficiency
- Lower running costs
- Zero installation cost
This helps make electric heating more affordable for households that cannot use gas.
Final Verdict: Which Should You Choose?
Here’s a quick summary:
| Category | Winner |
| Upfront Cost | Boiler |
| Running Cost | Boiler |
| Maintenance | Electric |
| Lifespan | Electric |
| Heat Quality | Boiler |
| Eco-Friendliness | Electric & Modern Boilers |
| Installation Speed | Boiler |
So, overall, a boiler replacement is far cheaper for most UK homes today.
Electric heating may become cheaper in the future, but for now, gas is still the most cost effective heating source, especially with the help of a free boiler replacement grant. When considering your options, you might wonder, Are Baxi Boilers Any Good? They are often a top choice for efficiency and reliability in these schemes.
If your home is off-gas, the free electric storage heater grant can also make modern electric heating affordable.
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