What will happen to rural (off gas) heating options? What should I go for??

Unique_Username

Advice please 🙂 -

I am a single father of two young daughters. I work full time and don't qualify for any benefits / income support etc. Not wealthy but government aren't going to help me at all.

We live in a small cottage in a rural location. We have no mains gas out here. We have a heating oil fired central heating system. 

At our last oil fill-up, the tanker driver made me aware that our plastic oil tank is begining to perish and needs replacing. It is not leaking yet but may soon fail and any leak would cause huge clear-up bills (apparently £250,000 and upwards).

So the tank has to go...

As things stand, oil is still by far the cheapest way to heat our home. Loads cheaper than electricity or LPG.

The most obvious move based on today, is simply to swap the tank for a new one. It would cost around £2.5k to do a direct swap like-for-like, but brilliantly the regs have changed since the last tank was installed, so we have to get a a special internally fire-proofed tank instead. 

All-in it'll cost nearly £5k.

Ordinarily, I'd just have to grin and bear it and this would be the end of things.

However...

There are of course 'eco-rumblings' from government around central heating at present. On my understanding, within the next few years they're looking to introduce 20% hydrogen to the mains gas supply, then to push everyone on the mains gas system over to full hydrogen, necessitating a mandatory boiler change and much cash being spent.

We of course are not on mains gas, but I can't imagine they'll leave us alone. Burning oil seems like something they'll try to clamp down on. What do we the assume then to be the implications for rural heating systems??

Will we be forced in the next couple of years to get rid of our oil & lpg heating systems? Or will they simply ramp-up the duty on heating oil and lpg to the point where we can't afford it?

I don't want to spend £5k on a heating tank now to find out in only a few months that I have to rip it out again in three to five years time.

Also I can't wait, because the old tank will potentially leak. 

On my understanding, these then are my options:

1) Change the tank. Hope not to get eco-clobbered in the next 5 years. Cost = £5k

2) Change to a LPG cylinder system. Pay more for heating in the short-term in the hope that an LPG system might be able to be converted to accommodate hydrogen when that comes in (wishful thinking?). This will require a new boiler being fitted as well. Cost = £9k approx.

3) Change to Air-source or Ground-source heat pump system. My understanding is that these don't work very well on non-new builds and particularly not with traditional radiator systems? These then effectively require for all of your floors to be ripped out and underfloor heating installed in order to be effective. Of course I've only recently installed the downstairs flooring 🙄. I believe that these will also require some sort of a gas or electric boiler system as well, as they only do heating and don't do hot water properly? Cost = £15k to £30k depending upon which and the amount of making-good required.

4) Change to a wood pellet boiler system - I understand that these are very large and require a dry indoor storage space equivalent to a small garage in order to purchase and store pellets in a quantity sufficient to make it economical. Also have heard that these are unreliable and not all that eco? Cost £12k approx.

Have I got all of this correct or am I confused? 

Does anyone know what the rural 'eco-solution' is likely to be?

I know that you can also theoretically do solar hot water systems, but my neighbour recently had one then ripped it out again as it was ugly and apparently hopeless.

As an aside; is air-conditioning also worth considering? I believe these can have a heating function on them too? I have two log burners in the property which I could use to augment the heating effect in the depths of winter, and might also of course be useful in the summer. It's only a small property... but is this practical or just hidiously expensive??

Apologies for the rather long post, I'm just reluctant to pick the wrong option and cause myself expensive issues further down the line. 

Thanks in advance for any advice.

Rich.

Verdigris

First of all look at insulation to reduce your heating load. If you have enough garden to install the collector coils, I'd look at a GSHP system. The capital cost is high but if you apply for RHI (renewable heat incentive) you should get most of the capital cost back over seven years. RHI finishes next April, IIRC, so you'll need to act fairly soon. There will be a less generous scheme after that date.

If  a smart meter will work in your location you can take advantage of TOU (time of use) tariffs to take advantage of cheap rates at off-peak time. Sometimes you can even get paid to use electricity when there's a surplus! Combine that with solar panels and batteries, you can generate and time-shift electricity to suit your heating needs.

I'm looking for a rural property with the intention of doing just that. I will have the advantage of being able to fit underfloor heating first but you could just fir larger radiators to compensate for the lower flow temperatures.

Good luck!

Gerry1

Verdigris said:

Sometimes you can even get paid to use electricity when there's a surplus! Combine that with solar panels and batteries, you can generate and time-shift electricity to suit your heating needs.

Paid to use electricity when there's a surplus?  Marketing spin, once in a blue moon, not money saving that you can seriously factor in.

Similarly, solar panels and batteries won't be cost effective for heating.  Solar panels won't generate much during the dull winter days when the sun is low, and the battery would cost a fortune because of the large amount of energy it would have to store.

Unique_Username

One other problem I do have is with insulation (lack of). It is a 'chalet-style' property, the upstairs rooms are in the roof space, so whilst the loft itself is insulated it only accounts for about 20% of the roof area.

We have new double-glazing but I don't think the insulation effect can be improved further. The upstairs gets very warm in summer and cold in winter. It's another reason I'd doubting the appropriatness of the heat pump based systems.

Verdigris

I feel your pain, U_U. My late mother's house was like that. The only "proper" way to deal with it is to make it into a "warm roof" but that would involve stripping off the roof covering, making adjustments to the structure to allow for appropriate ventilation, fitting moisture barriers and insulation and then putting the slates/tiles back. Might be a worthwhile option if the roof needs overhauling anyway.

Has the house got an EPC? I suspect it is an E or F, which could make it difficult to sell and illegal to rent out, which are factors to bear in mind in the longer term.

£5k for an oil tank sounds a bit steep, to me. Have you got an independent quote for it? I expect the tanker drivers get a bonus on tank sales!

I think, in your shoes, and if the boiler is fairly new and reliable, I'd replace the oil tank if it costs, as I suspect, significantly less than you've been quoted, and improve the energy rating of the house as a part of ongoing maintenance. Then bite the bullet with heat-pump, or whatever might be available in the future, when the time comes to replace the oil boiler.

Reed_Richards

Unique_Username said:

3) Change to Air-source or Ground-source heat pump system. My understanding is that these don't work very well on non-new builds and particularly not with traditional radiator systems? These then effectively require for all of your floors to be ripped out and underfloor heating installed in order to be effective. Of course I've only recently installed the downstairs flooring 🙄. I believe that these will also require some sort of a gas or electric boiler system as well, as they only do heating and don't do hot water properly? Cost = £15k to £30k depending upon which and the amount of making-good required.

I have an Air Source Heat Pump using radiators in my 1980 bungalow and it is absolutely fine, I am very pleased with it.  The running cost looks as if it will be similar to my old oil boiler.

ASHPs are absolutely fine with radiators but you will almost certainly need new radiators to compensate for lower water temperatures.

The ASHP works fine to heat the hot water in my cylinder to 50 C.  Once a week an immersion heater runs to bring this up to 60 C for an hour as a guard against listeria Legionella.  There is nothing else ancillary.

The work required probably isn't as much as you think so it will probably be much cheaper than you estimate.

 

Verdigris

Once a week an immersion heater runs to bring this up to 60 C for an hour as a guard against listeria.

Legionella, more likely.

dunstonh

The most obvious move based on today, is simply to swap the tank for a new one. It would cost around £2.5k to do a direct swap like-for-like, but brilliantly the regs have changed since the last tank was installed, so we have to get a a special internally fire-proofed tank instead. 

A direct swap on a like for like basis would be cheaper than that.   Even a bunded tank would be cheaper than that.   So, maybe the regs you refer to are also about location (rules on those have changed over the years).

All-in it'll cost nearly £5k.

That seems very high for a like for like changeover.   

There are of course 'eco-rumblings' from government around central heating at present. On my understanding, within the next few years they're looking to introduce 20% hydrogen to the mains gas supply, then to push everyone on the mains gas system over to full hydrogen, necessitating a mandatory boiler change and much cash being spent.

That will not likely happen to rural properties during your lifetime.  They are focusing on gas primarily as it makes up 77% (central heating) and 10% (fixed heaters).  Oil only accounts for 4% and is typically in properties that are rural and no alternative is viable.
One day they will look to do something about oil but its not the priority and for many, there is no cost effective or viable alternative at this time.

Will we be forced in the next couple of years to get rid of our oil & lpg heating systems? 

no

I don't want to spend £5k on a heating tank now to find out in only a few months that I have to rip it out again in three to five years time.

Not going to happen.

3) Change to Air-source or Ground-source heat pump system. My understanding is that these don't work very well on non-new builds and particularly not with traditional radiator systems? These then effectively require for all of your floors to be ripped out and underfloor heating installed in order to be effective. Of course I've only recently installed the downstairs flooring 🙄. I believe that these will also require some sort of a gas or electric boiler system as well, as they only do heating and don't do hot water properly? Cost = £15k to £30k depending upon which and the amount of making-good required.

15k to 30k if you are lucky.  Closer to £50k in many cases.

Does anyone know what the rural 'eco-solution' is likely to be?

Probably not invented yet or at least not economically viable or technologically advanced enough to suit most rural properties.

Rodders53

Oil tank size and location may well be affecting the price.
A new oil tank will likely need to be 'bunded' to aim to prevent oil spills = more costly than single skin of same capacity. 
The base may well not be adequate for the new tank (size and/or weight and/or load spreading), so requiring a new reinforced concrete base installing.
It's location may require fire-proofed bunded tank, or relocating further from the dwelling/boundary fences/outbuildings = more costly than a simple bunded tank and the 30 minute vs 60 minute fire rating also affect the price.
New tank will need old oil pumped out into temporary storage barrels and then back into the new, plus specialised, approved, disposal of the old tank.
---------
Now if/when the Govt(s) of the UK & NI actually ban the use of kerosene (or LPG or Natural gas) for domestic heating is anyone's guess.  Only new builds can't have them after 2025 (and is that date the planned/started/completed building date?)
----------
It is however in my view worth researching now for the install and running costs of the options:
GSHP if you have the land space?  ASHP if not (allowing for larger radiators to run at the lower water temperature).
Get more than one supplier / installer to quote and provide room heat loss calcs for radiator sizing.

New oil tank.
Get multiple quotes from at least three installers (not oil suppliers - they'll just sub-contract) and they may have options on size/placement that can save on that £5k (or not).

You know your current annual heating oil use = annual heating / hot water energy use (10kWh per litre of kerosene is close enough for the calculations). With heat pumps the electric they will consume to give that energy out can be guesstimated for a number of COP figures.  Bear in mind that a £5k tank could buy quite a lot of electricity - except that you'll be shelling out 2-3x that for the heat pump install... and some RHI back over the following years.

You'll need the costs for removal and disposal of the current oil tank and boiler to add to the heat pump alternative costs, too!

Unique_Username

Hi. 
Thank you everyone for all the replies. I've caused a bit of confusion on the tank front. It's absolutely correct, there are a couple of factors involved.
The existing tank is single skinned and made of plastic. It is also at the side of the house against the wall.
None of that apparently flies any more regs wise.

We had our boiler guy quote initially but he said that he couldn't do complicated swaps such as our one. He recommended a specialist firm. The initial options were either to have installed a double-bunded tank, on a new base, further out from the wall and fireboard the whole side of the house. This would have been the cheaper option but would have been unsightly and put us in breach of other planning regulations (we are in a conservation area).
Our other options was to move the tank completely, but the area required is such that it'd have to go either right in the middle of the front or back garden and we and our neighbours would have to look at it. They're not pretty. This would involve spending about £3.5k on a tank to go in a place I don't want it, whilst leaving a large dead 'tank shaped' area at the side of the house, that I can do nothing with. 
After much correspondance we came up with the final option of the much more expensive internally fire proofed steal tank. This can go in the appropriate location, but is more expensive to buy and fit (requires 3 fitters not 2) and has to be craned into the garden. Because it lacks the Oiltech certification the Council also need to come out and inspect it whilst fitting is taking place, for which they'll charge me another £200.

It's all surprisingly complicated!! 

Reed_Richards

I was persuaded to get an ASHP because my alternative would have been a new oil tank, although not with all the expense and complications faced by the OP.  It will still be necessary to pay to get the old oil tank emptied and removed but perhaps an ASHP could go where it used to be?