LPG Heating Cost in 2026 (UK)
LPG heating costs around 8–9p per kWh to run in 2026, sitting above mains gas but usually below heating oil and well below direct electric. A new LPG combi boiler fitted costs £2,000–£3,500, and most households rent the storage tank from their supplier rather than buying it. LPG suits off-grid homes that want gas-style instant heat and hot water without an oil tank. Here is the full 2026 breakdown of running costs, boiler prices and tank options.
2026 LPG heating cost breakdown
| Item | Typical cost (2026) | Notes |
|---|---|---|
| LPG running cost | ~8–9p per kWh | Above mains gas, usually below oil |
| New LPG combi boiler (supply & fit) | £2,000–£3,500 | System/regular a little less |
| Tank rental (from supplier) | £50–£120 per year | Often free with a fuel contract |
| Bought above-ground tank | £800–£2,000 | Frees you to switch suppliers |
| Underground tank (supply & install) | £2,500–£4,500 | Discreet but higher upfront |
| Annual boiler service | £80–£130 | Keeps warranty valid |
How much does LPG cost to run?
LPG is priced per litre but works out at roughly 8–9p per kWh in 2026 once you account for calorific value. That makes it more expensive than mains gas but typically a little cheaper than heating oil per unit of heat, and far cheaper than old-style direct electric heating. A well-insulated three-bed home off the gas grid might use 12,000–18,000 kWh a year for heating and hot water.
Tank rental vs buying your tank
Most households rent the tank from their LPG supplier, which is cheap or free but ties you to that supplier's prices. Buying your own tank costs £800–£2,000 above ground (more underground) but lets you shop around for the cheapest fill, which can pay back over several years if you use a lot of gas.
LPG vs oil vs electric
Oil often edges LPG on pure fuel price but needs a larger tank and OFTEC servicing; LPG boilers are near-identical to mains-gas boilers and give instant combi hot water. Direct electric is simplest to install but usually the most expensive to run. A heat pump can beat all three on running cost where the home is well insulated.
LPG heating costs at a glance — 2026
Source: BestBuilders 2026 regional cost model · 519 UK towns
Full 2026 rate card
| Item | Typical cost (2026) | Notes |
|---|---|---|
| LPG combi boiler, supplied and fitted | £2,000–£3,500 | Gas Safe engineer with LPG qualification |
| LPG system or regular boiler | £1,900–£3,300 | Cylinder homes |
| Conversion kit, mains-gas model to LPG | £50–£150 + labour | Many boilers are convertible |
| Above-ground tank rental | £60–£150 per year | Supplier owns and maintains it |
| Buying your own tank | £1,000–£2,000 | Frees you to switch suppliers |
| Underground tank installation | £1,500–£2,500 extra | Excavation; tidier garden |
| Annual service | £80–£120 | Same as mains gas |
| Air source heat pump alternative | £7,500–£14,000 | Minus £7,500 BUS grant — see heat pump costs |
Where LPG money actually goes
The boiler is the small decision; the fuel contract is the big one. LPG costs more per unit of heat than mains gas, and prices vary sharply between suppliers and contract stages — the headline rate at signing and the rate two years in are rarely the same. The levers that matter: shop the market at every contract end (switching is a legal right, tank swap included), consider buying the tank if consumption is high, join or form a village buying group where one exists, and cut the kWh themselves — insulation and controls beat any tariff.
LPG vs oil vs heat pump for off-grid homes
| LPG | Oil | Air source heat pump | |
|---|---|---|---|
| Boiler/unit fitted | £2,000–£3,500 | £2,500–£4,500 | £7,500–£14,000 (−£7,500 grant) |
| Running cost per kWh of heat | Higher | Often lowest of the boilers | Lowest in a well-insulated home |
| Combi (no cylinder) possible | Yes | Yes, fewer models | No — cylinder needed |
| On-site storage | Tank (rented or owned) | Tank (owned) | None |
| Future-proofing | Fossil | Fossil | The direction of travel + grant support |
Deeper comparison: is a heat pump cheaper than a boiler? and the oil boiler cost guide.
Choosing the engineer: checklist
- Gas Safe registration with the LPG category shown — mains-gas-only engineers cannot legally work on LPG.
- Experience with your tank supplier’s pipework standards.
- Quote covers the changeover valve, regulator and gas-tightness test, not just the boiler.
- Three itemised quotes — rural call-out premiums vary widely.
FAQs
Get 3 Free LPG Heating Quotes
BestBuilders matches you with up to 3 vetted LPG engineers. Compare LPG boiler and heating quotes — no cost, no obligation.