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.
Owners across the Highlands and Islands can have oil tank removal arranged alongside a heat pump installation in the Highlands and Islands. For homes outside the Highlands and Islands reached by a long drive or narrow lane, delivery of the unit and cylinder is planned in advance. If your home near the Highlands and Islands is off the mains gas grid, a heat pump removes the need for oil or LPG deliveries.
Who it suits
- Rural and village homes off the mains gas grid
- Older oil boilers nearing the end of their life
- Detached houses and bungalows with garden space for the unit
- Owners tired of fuel deliveries and tank maintenance
Grants and rules for heat pumps in Scotland
In Scotland, heat pump funding comes through Home Energy Scotland rather than the Boiler Upgrade Scheme: a grant of up to £7,500 (up to £1,500 extra for eligible rural and island homes) and an optional interest-free loan of up to £7,500. For a home in the Highlands and Islands, apply and receive the written offer before the installation date is fixed.
There is no VAT on installing a heat pump anywhere in the UK, Scotland included, until 31 March 2027. Scottish permitted development rules and building standards apply, and the surveyor checks the unit position and any listed or conservation-area constraints.
Oil and LPG boiler replacement prices in the Highlands and Islands
Here are typical prices for replacing an oil or LPG boiler with a heat pump in the Highlands and Islands, installed and including VAT. Use the guide price tool for a figure based on your home, then a survey confirms it in writing.
| Home | Typical size | Installed guide price |
|---|---|---|
| 1–2 bedroom flat or small terrace | 4–5 kW | £10,650–£14,000 |
| 2–3 bedroom terrace or semi | 5–7 kW | £11,750–£15,100 |
| 3 bedroom semi or small detached | 6–9 kW | £13,450–£17,350 |
| 4 bedroom detached | 8–12 kW | £15,700–£20,150 |
| 5+ bedroom or larger older house | 11–16 kW | £18,500–£25,200 |
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 the Highlands and Islands
We cover 12 towns in the Highlands and Islands 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 |
|---|---|---|---|
| Inverness | IV1 | Dingwall | 6 h 35 min |
| Fort William | PH33 | Oban | 6 h 45 min |
| Aviemore | PH22 | Inverness | 6 h 40 min |
| Dingwall | IV15 | Inverness | 6 h 34 min |
| Kirkwall | KW15 | – | 6 h 11 min |
| Lerwick | ZE1 | – | 5 h 49 min |
| Nairn | IV12 | Forres | 6 h 34 min |
| Portree | IV51 | – | 6 h 36 min |
| Stornoway | HS1 | – | 6 h 24 min |
| Thurso | KW14 | Wick | 6 h 17 min |
| Ullapool | IV26 | Dingwall | 6 h 29 min |
| Wick | KW1 | Thurso | 6 h 20 min |
Replacing an oil or LPG boiler with a heat pump questions
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.
What happens with a leased LPG tank?
Leased LPG tanks belong to the supplier, so the supplier arranges collection. Check your contract for notice periods and any charges before you fix a date. We time the switchover so you are not left without heating, and once the heat pump is commissioned the supplier can empty and remove the tank. Bottled LPG cylinders are simply returned.
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.
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.