ᐅ Is it still worth installing a new oil heating system today?

Hello everyone,

We are currently facing the difficult question of whether to still install a new oil heating system given the current "penalties" being considered for oil heating.

This concerns a renovation, and the decision for a new condensing oil boiler was already made some time ago, the KFW application has been submitted, etc... the heating system was supposed to be installed soon.

Now I am a bit uncertain whether we should switch at short notice (the only real alternative for us would be pellets).

Are there any opinions on this?

Best regards, Kate***

If the costs are comparable, I would move away from oil. Otherwise, it’s fine to still install oil heating; you first need to recover the additional investment. However, this is just my personal bet on the future...

According to our heating installer, the pellet heating system would cost about €10,000 (approximately $11,000) more, despite better subsidies.

Of course, this cost difference is offset over time by the savings between heating oil and pellets, not just by CO2 penalties. However, it remains questionable whether it pays off within the estimated lifespan of the heating system, which is about 20 years.

Forecasting the development of oil and pellet prices alongside an estimated lifespan of a heating system is quite speculative. You can make the numbers look favorable or unfavorable. Anyone who still installs fossil fuel systems today is rather outdated. Regardless of the cost, if it does not put too much strain on liquidity, choose a more modern and environmentally friendly option.

Well, we are replacing an old oil heating system that has significantly poorer efficiency compared to what the new one will offer. The new system will use condensing technology and will include a thermal storage tank that can be heated alternatively. Additionally, there is also a tiled stove.

Therefore, I don’t necessarily see this as an outdated approach, especially since the KfW supports this measure with a 15% subsidy of the costs.

What does concern me at the moment, however, are the proposed CO2 penalties, which will directly affect the price of heating oil per liter (gallon).

I would also be concerned about who will deliver the fuel in 15 years and at what price. I believe the market for home heating oil suppliers will also change over the next 15 years. So, it’s not just the assumption about the oil price but also the supply logistics that create uncertainty.