Oil Is now cheaper than mains gas for domestic heating
The latest industry figures show that oil is now cheaper than mains gas when it comes to home heating.
As oil costs have continued to fall are we about to see a dramatic change in the way we heat our homes?
According to the Sutherland Tables, recognised independent source of data on comparative UK domestic heating prices, oil is now the cheapest of all the major heating fuels, costing on average £119 less per year to heat an average three bedroom home than mains gas, the second cheapest option.
Data shows that the price of kerosene has fallen nearly 30% in the last 2 years. Oil is now coming in at around 47% less expensive than off the grid alternatives like LPG and 37% cheaper than electricity.
The surprising news doesn’t stop there though. Many analysts agree that the price of oil is set to stay low for the foreseeable future and this is supported by the Department of Energy and Climate Change’s (DECC) most recent Fossil Fuel Price Projections Report which even forecasts the potential for further falls over the next three years.
One unfortunate side effect of the reduced price of oil is perhaps a lesser demand for the government’s domestic Renewables Heat Incentive (RHI) scheme. The Sutherland Tables show that the running cost of electricity driven air source heat pumps are significantly greater than those of a condensing oil boiler. Even after RHI payments the running costs are expected to be considerably higher.
The latest RHI statistics from Ofgem are somewhat disappointing. They show that in the first nine months of operation the domestic RHI scheme has only attracted 2,402 new (non-legacy) accredited installations.
When it was launched the DECC’s initial impact assessment stated that the RHI aimed to support around 750,000 renewable heat installations by 2020.
So perhaps it’s a good time to get into oil? With this surge in demand installers will be needed so get your qualifications sorted in good time.