Oil and LPG boiler replacement means swapping a boiler that burns delivered fuel for an air-to-water heat pump running on electricity, then decommissioning the fuel tank. Homes off the gas grid are often rural, detached or older, so they tend to lose more heat than a typical suburban house. That makes careful heat loss design especially important, but it also means there is usually space outside for the unit.
Cottages and farmhouses in and around Edinburgh and the Lothians often have solid walls, so the survey looks closely at construction and draughts. If your home near Edinburgh and the Lothians is off the mains gas grid, a heat pump removes the need for oil or LPG deliveries. Rural properties near Edinburgh and the Lothians usually have garden space for the outdoor unit, sited away from windows and sheltered where possible.
Who it suits
- Detached houses and bungalows with garden space for the unit
- Older oil boilers nearing the end of their life
- Rural and village homes off the mains gas grid
- Owners tired of fuel deliveries and tank maintenance
Grants and rules for heat pumps in Scotland
The Boiler Upgrade Scheme does not apply in Scotland. Instead, homeowners in Edinburgh and the Lothians can apply to Home Energy Scotland for a grant of up to £7,500 towards a heat pump, with up to £1,500 more for eligible rural and island homes, plus an optional interest-free loan of up to £7,500. You need a written funding offer before any work starts.
Installing heat pumps is zero-rated for VAT across the UK until 31 March 2027. Scotland has its own permitted development rules for air source heat pumps and its own building standards, so we confirm what applies to your property at survey.
Oil and LPG boiler replacement prices in Edinburgh and the Lothians
The ranges below are typical installed prices for homes in Edinburgh and the Lothians, including VAT. A survey sets the exact figure, because two similar-looking houses in Edinburgh and the Lothians can need quite different radiators and pipework.
| Home | Typical size | Installed guide price |
|---|---|---|
| 1–2 bedroom flat or small terrace | 4–5 kW | £9,700–£12,750 |
| 2–3 bedroom terrace or semi | 5–7 kW | £10,700–£13,750 |
| 3 bedroom semi or small detached | 6–9 kW | £12,250–£15,800 |
| 4 bedroom detached | 8–12 kW | £14,300–£18,350 |
| 5+ bedroom or larger older house | 11–16 kW | £16,850–£22,950 |
Installed, inc VAT: unit, cylinder, controls, minor pipework and commissioning. In Scotland, Home Energy Scotland grants of up to £7,500 and interest-free loans may reduce the cost.
Towns we cover in Edinburgh and the Lothians
We cover 12 towns in Edinburgh and the Lothians for replacing an oil or LPG boiler with a heat pump. Each links to local guide prices and the grant position for Scotland.
| Town | Postcode district | Nearest town | Midwinter daylight |
|---|---|---|---|
| Edinburgh | EH2 | Musselburgh | 6 h 57 min |
| Livingston | EH54 | Broxburn | 6 h 58 min |
| Musselburgh | EH21 | Dalkeith | 6 h 57 min |
| Bathgate | EH48 | Livingston | 6 h 58 min |
| Bonnyrigg | EH19 | Dalkeith | 6 h 58 min |
| Penicuik | EH26 | Bonnyrigg | 6 h 59 min |
| Broxburn | EH52 | Livingston | 6 h 58 min |
| Dalkeith | EH22 | Bonnyrigg | 6 h 58 min |
| Dunbar | EH42 | North Berwick | 6 h 57 min |
| Haddington | EH41 | North Berwick | 6 h 57 min |
| Linlithgow | EH49 | Bo'ness | 6 h 57 min |
| North Berwick | EH39 | Haddington | 6 h 56 min |
Replacing an oil or LPG boiler with a heat pump questions
Can a heat pump cope with an exposed rural spot?
Yes. Air source heat pumps are designed to keep working well below freezing, and they periodically defrost, giving off a little vapour, which is normal. In exposed locations the installer chooses a sheltered position where possible, raises the unit to clear snow and let defrost water drain, and sizes the system for the local winter design temperature used in the heat loss calculation.
Is a heat pump cheaper to run than oil?
It depends on oil prices, your home's insulation, the flow temperature and your electricity tariff, so there is no single answer. At the October to December 2026 price cap, a heat pump with a seasonal efficiency of 3.0 delivers heat for about 8.8p per kWh, and at 3.5 about 7.5p. Compare that with your oil cost per kWh of heat, allowing for your boiler's efficiency; the survey estimate gives a figure for your home.
How much is the grant for replacing an oil boiler with a heat pump?
In England and Wales, the Boiler Upgrade Scheme grant is £9,000 when an air-to-water heat pump replaces oil or LPG heating, for installations from 21 July 2026 to 31 March 2027. Otherwise the standard £7,500 applies. The installer claims it and deducts it from your quote. Scotland's Home Energy Scotland funding works differently and includes extra for eligible rural homes; Northern Ireland has no dedicated homeowner scheme at present.
Do I have to remove my oil tank?
Not always, but it should be emptied and made safe. A tank in good condition can be drained, cleaned and left in place, though most owners prefer to have it taken away to free up space. Old or damaged tanks are usually removed. Your quote says which option is included, and any remaining oil and sludge is disposed of properly.