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
Before looking at potential savings, it helps to understand boiler efficiency.
Modern boilers sold in the UK carry an Energy-related Products (ErP) energy label. This allows you to compare the energy efficiency of different boilers before buying.
For boilers, one of the most important figures is seasonal space heating efficiency. This estimates how efficiently the boiler converts the energy it uses into heat for your home across typical operating conditions.
Modern A-rated condensing gas boilers are considerably more efficient than many older boilers. This means they can produce the same amount of useful heat while using less gas.
The greater the difference between the efficiency of your old boiler and your new one, the greater your potential gas savings.
Gas Standing Charge
For the July to September 2026 Ofgem price-cap period, the average gas standing charge for customers paying by Direct Debit is around 29p per day, with an average gas unit rate of around 7.3p 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
Some very old gas boilers can run at around 60% efficiency, meaning only around 60% of the energy in the gas is converted into useful heat.
Modern A-rated condensing gas boilers typically achieve around 92–94% efficiency, which means far more of the gas they use is converted into useful heat. Replacing an old and inefficient boiler can therefore significantly reduce gas consumption and heating costs.
For illustration, let’s take a medium-sized home which requires around 12,000 kWh of useful heat from its boiler each year. Here’s how the costs could compare between a very old 60% efficient boiler and a modern 92% efficient boiler:
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 × 7.33p = £1,466.00
- Standing Charge: 29.04p × 365 days = £106.00
- Total Annual Cost: £1,572.00
Switching to a 92% Efficient New Gas Boiler
- Gas Usage: A 92% efficient boiler requires around 13,043 kWh of gas annually to produce 12,000 kWh of usable heat.
- Annual Gas Cost: 13,043 kWh × 7.33p = £956.05
- Standing Charge: 29.04p × 365 days = £106.00
- Total Annual Cost: £1,062.05
The standing charge is the same in both examples, so the saving comes entirely from the reduction in gas consumption.
Potential Savings
In our example, a medium-sized home could save approximately £510 per year on gas by replacing a very inefficient 60% efficient boiler with a modern 92% efficient boiler.
The amount you could save will vary. Smaller homes with lower heating requirements will generally save less, while larger homes with higher heating requirements could save more.
Your actual savings will also depend on the efficiency of your existing boiler, how much heating and hot water you use, your home’s energy efficiency and your gas tariff.
The cost of the boiler installation also needs to be considered. At TM Hughes & Son, new Boiler installations start from £1,475.
Using the example above, saving around £510 per year could offset a £1,475 installation cost in approximately three years. Actual payback will depend on the cost of your installation, the efficiency of your existing boiler, your heating usage and future gas prices.
Additional Benefits Of A New Boiler Installation
Here are some additional benefits of having a new boiler fitted:
- Improved heating performance: A modern boiler can provide more efficient and reliable heating than an ageing, inefficient system.
- Energy savings: A modern high-efficiency boiler uses less gas to produce the same amount of useful heat. Modern A-rated condensing boilers can achieve efficiencies of around 92–94%, compared with much lower efficiencies from some older boilers.
- Reduced carbon emissions: A more efficient boiler requires less gas to produce the same amount of useful heat, which can reduce the carbon emissions associated with heating your home.
- More attractive to buyers: A recently installed modern boiler may be attractive to potential buyers who would otherwise need to budget for replacing an ageing heating system.
- 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.
- Modern safety features: New boilers incorporate modern safety controls and must be installed correctly by a Gas Safe registered engineer. Regular servicing remains important to keep your boiler operating safely.
- 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 a very old and inefficient boiler, replacing it with a modern high-efficiency model could significantly reduce your gas bills. In our example, replacing a 60% efficient boiler with a modern 92% efficient model saves around £510 per year, based on July to September 2026 gas prices.
Your actual savings will depend on the efficiency of your existing boiler, your property, heating and hot water usage, energy tariff and the efficiency of your new boiler.
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.
Hi, I’m Terry, the founder and owner of TM Hughes & Son Gas Services
Please get in touch to book an appointment or receive a free, no-obligation quote
Call – 01245 830075
Email – info@tmhughesandson.uk
0% Finance
For Boiler Installations & Repair