Can I get a grant to replace my domestic oil tank or boiler?

February 24, 2021
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Did you know that according to the United Nations Environment Programme, buildings account for approximately 39% of energy-related carbon dioxide emissions annually?

The impact of emissions from properties may not be as widely discussed as that of exhaust fumes, air travel or the food industry. But that certainly does not mean it’s impact is negligible.

As part of their ambitious plans to tackle climate change, the Scottish Government has committed to ac achieving an 80% reduction in Scotland’s overall emissions by 2045. And tackling buildings’ carbon output is an essential part of combating climate change. 

In order to incentivise this, and remove some of the financial burden from home-owners, the government has put in place some grants to help upgrade buildings and reduce the overall carbon footprint. 

In this blog we’ll look at whether there are any grants available for an oil boiler or tank installation to help you ease the cost. 

When should you replace your domestic oil tank?

Replacing your oil storage tank is definitely not something that will need to be done every other year.  It’s hard to put an exact number on the lifespan of a domestic oil tank, but most will last you somewhere between 15-20 years with proper care and maintenance.

On average, a domestic oil tank can cost between £595 – £2500 +vat  in the UK to replace.

In general, your oil tank isn’t something that will become more efficient if replaced. So this part of the heating system is not something that you will be able to secure a government grant to replace.

However that does not mean that there are not grants available for upgrading your heating system. 

Have a look at our fuel storage tanks

Related content: How much does it cost to replace a domestic oil tank?

Are there any grants to replace your domestic oil boiler?

An oil boiler will usually set you back somewhere between £2500 – £4000. Which can be cheaper than other types of boilers, however it’s still a considerable cost that you will need to factor into any upgrade plans.

Modern boilers are actually a very efficient way of heating your home. They can be up to 97% efficient. But old boilers may be inefficient and burn more oil than necessary to keep your home warm. 

So, it’s important that old, inefficient boilers are replaced. 

There are a few grant options that you may be able to apply for, if you are eligible. 

  1. Energy Company Obligation (ECO) grant
  2. Home Energy Efficiency Programmes for Scotland (HEEPS)
  3. Warmer Homes Scotland 

1. What is the Energy Company Obligation (ECO) scheme?

The Energy Company Obligation (ECO) is a UK based government energy efficiency scheme with an aim to tackle carbon emissions and fuel poverty. 

There are multiple energy efficiency measures that can be installed under ECO including heating and insulation measures. You may see this referred to as the ECO3, as we are now onto the third version of the scheme. 

The big energy companies are involved, and install free home insulation and subsidised boilers for eligible households. The installation cost for a new boiler can be as little as £240, through the ECO scheme. 

Related content: Oil vs hybrid heating system; which is best?

Who is eligible for the Energy Company Obligation (ECO) scheme?

You can qualify for the ECO scheme if you meet the following qualifying criteria:

  1. You own your home.
  2. You get at least one qualifying benefit, such as income support or disability living allowance. 
  3. Your home has an EPC rating of A to E.

The Government has introduced legislation to make landlords of privately rented homes responsible for providing a working heating system in homes they rent out.

How to apply for the Energy Company Obligation (ECO) scheme…

If you live in Scotland, you should contact Home Energy Scotland on 0808 808 2282 or complete their contact form.

Otherwise, you can contact an obligated energy supplier to apply for the ECO scheme.

2. What is the Home Energy Efficiency Programmes for Scotland (HEEPS)

The Home Energy Efficiency Programme for Scotland (HEEPS), is funding awarded to local authorities to deliver energy efficiency programmes in areas with high levels of fuel poverty. 

The area-based schemes are designed and delivered by councils with local delivery partners. They target fuel-poor areas to provide energy efficiency measures to a large number of Scottish homes while delivering emission savings and helping reduce fuel poverty.

Who is eligible for the Home Energy Efficiency Programmes for Scotland (HEEPS) and how to apply…

If you are eligible for the HEEPS, then your local council will send you a letter inviting you to participate in the area based scheme. The letter will inform you about the proposed energy efficiency works planned in your area.

You can choose to opt in or out. 

3. Warmer homes Scotland Scheme

The Warmer Homes Scotland scheme works under the dual aim of reducing national fuel bills and upgrading the energy efficiency of properties across the country. 

Improvements to your home can be up to the value of £4000, and lead to average savings of over £350 a year on energy bills. 

Who is eligible for the Warmer Homes Scotland scheme?

If you are a ‘vulnerable person’ in Scotland, regardless of whether you own or rent, you can qualify. You must meet all of the following criteria in order to qualify for the Warmer Homes scheme:

  • are a homeowner or private tenant
  • have also lived in the property for at least 12 months

For more information on the criteria for the Warmer Homes scheme click here.

In conclusion: can you get a government grant to replace your oil or boiler?

The government is keen to incentivise and lower the financial burden of the installations and upgrades that will help reduce the carbon footprint of domestic homes. 

This will help them to achieve their ambitious, yet necessary, net-zero targets by 2045.

While there are no grants available to install a domestic oil tank, there are some available for eligible households to upgrade their oil boiler to a more efficient unit. These are usually available through the boiler installation companies. 

If you need to replace your domestic oil tank, then please get in touch with us as that is something that we can arrange. 

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