The Money A New Boiler Can Save You In 2026

Installing a New Gas Boiler Could Significantly Reduce Your Energy Bills. This article will explain how much a new gas Boiler can save you in 2026.

ErP Ratings

The UK is seeing a push towards more energy-efficient appliances and sustainable living, and installing a new gas boiler could be a great way to save money and reduce your carbon footprint.

We need to understand the impact of energy efficiency on your energy bills before we can discuss potential savings. For example, a boiler’s efficiency is determined by its Energy Related Products (ErP) rating, which measures how much fuel it uses to produce heat.

Energy-related products (ErPs) are a rating system introduced in 2015 to replace SEDBUK’s UK rating system for rating the energy efficiency of various products, such as boilers.

A product’s ErP rating is calculated by analysing its energy consumption, standby power, and noise level to determine its energy efficiency.

Letters ranging from A+++ to G are used for the ratings, with A+++ being the most efficient and G the least.

A numerical score is calculated to determine the letter rating based on the product’s energy consumption and other factors.

A boiler’s ErP rating is determined by its efficiency under different load conditions and the efficiency of any additional components, such as pumps and fans.

It is mandatory in the UK and the EU to provide energy performance ratings on boilers. Consumers can use these ratings to make informed decisions about the products they buy.

Typically, energy efficiency ratings are included on product labels and marketing materials, making it easier for consumers to compare the energy efficiency of different products.

Gas Standing Charge

As of January 2026, the UK’s average standing charge for gas is 35.09p per day, with a gas unit rate of 5.93p per kWh.

The standing charge remains a fixed daily cost charged by your energy supplier, regardless of your gas usage.
The unit rate is the amount you pay per kWh of gas consumed, meaning your energy bill increases with higher gas usage.

Boiler Efficiency: Old vs. New

Old gas boilers have been found to run as low as 60% efficiency and waste approximately 40% of the gas they consume, leading to higher energy bills.

New gas boilers, however, can achieve up to 99% efficiency, only wasting 1% of the gas they use. This significant efficiency improvement can lead to substantial savings in energy bills.

For an average medium-sized household consuming around 12,000 kWh of gas annually, here’s how the costs compare:

Using an Old Boiler (60% Efficiency)

Gas Usage: A 60% efficient boiler requires 20,000 kWh of gas annually to produce 12,000 kWh of usable heat.
Annual Gas Cost: 20,000 kWh × 5.93p = £1,186.00
Standing Charge: 35.09p × 365 days = £128.58
Total Annual Cost: £1,314.58

Switching to a 99% Efficient New Gas Boiler

Gas Usage: A 99% efficient boiler only requires 12,121 kWh of gas annually to produce 12,000 kWh of usable heat.
Annual Gas Cost: 12,121 kWh × 5.93p = £718.78
Standing Charge: 35.09p × 365 days = £128.58
Total Annual Cost: £847.36

Potential Savings

A medium-sized household could save approximately £467 per year on gas bills by upgrading to a new high-efficiency boiler.
A small household could save approximately £312 per year on energy bills.
A large household could save approximately £779 per year on energy bills.

Several factors will affect how much energy and money you can save, including the size of your home, the type of heating you use, and your energy consumption habits. This is just an example.

However, if you have an old and inefficient gas boiler, you can significantly lower your energy bill with a new one.

The cost of the Boiler installation needs to be considered. At TM Hughes & Son, new Boiler installations start at £1,475

Considering the potential savings that you can achieve. Using the above example, the new Boiler will have paid for itself in just over two years.

Additional Benefits Of A New Boiler Installation

Here are some additional benefits of having a new boiler fitted:

Increased heating performance: Compared to an old boiler, a new one will be more reliable and efficient.
Energy savings: With a new boiler, you will save considerable money on your energy bills since you will need less fuel to produce the same amount of heat. As discussed, a new boiler can operate at up to 99% efficiency.
Reduced carbon emissions: Replacing your old Boiler with a new one will reduce your carbon footprint and contribute to a greener environment.
Added value to your home: If you plan to sell your home soon, a new boiler can enhance your home’s value, a desirable feature many homebuyers look for.
Quieter running: It’s unlikely that your heating system will make any banging or clanking noises when it’s on, since modern boilers are very quiet.
Enhanced safety: A new boiler is likely safer, so you won’t have to worry about leaks or other safety issues, such as carbon monoxide.
Improved control: Modern boilers often include advanced controls, allowing you to adjust your heating system’s temperature and timing to suit your needs.
Reduced repair bills: New boilers require fewer repairs than older ones since they are less likely to break down.

Save Money With A New Boiler

If you have an old Boiler, you will. On average, save around £500 per year (if you live in a medium-sized home) by installing a new one. Smaller properties will likely save less than £500, while larger properties will likely save more.

TM Hughes & Son Gas Services Ltd installs Boilers throughout Essex. If you live in the area and are interested in a New Boiler Installation, please get in touch for a free, no-obligation survey and quote.