How to Finance a New Boiler: Payment Plans, Grants & Options
What Does a New Boiler Actually Cost?
Before exploring flexible payment plans and other ways to pay, it helps to understand how much a new boiler is likely to cost. Most UK homeowners pay somewhere between £2,000 and £4,500 for a new boiler installation.
The final figure depends on the type of boiler, whether it is a straightforward like-for-like replacement or involves additional pipework work, and the condition of the existing system.
A standard combi boiler replacement in the same location tends to sit towards the lower end of that range. A system boiler installation, which includes a hot water cylinder, or any work that involves relocating the boiler or converting from one system type to another, typically sits higher. You can read more about the differences and what affects cost in our guide to combi boiler vs system boiler.
The only way to get a reliable figure for your specific home is an in-person assessment. Get in touch with our team and we will come out and give you a clear, no-obligation quote before anything is committed.
Option 1: Pay Upfront
The simplest option is paying for your new boiler without an ongoing payment plan. If you have savings set aside, or if the timing works in your favour, this means there are no ongoing commitments, interest or monthly payments to factor into your budget.
For standard boiler installations, 50% of the total cost is payable before installation, with the remaining 50% due on completion.
For renewable installations, such as heat pumps or solar PV, payments are split into three stages: 25% upfront, 25% at the start of the work and the remaining 50% on completion.
If paying this way isn’t right for you, or you’d prefer to keep more of your savings available, the flexible payment options below may be worth considering.
Option 2: A Boiler Payment Plan (Interest-Free Finance)
At Blue Flame, we offer interest-free boiler payment plans through Novuna Personal Finance, allowing you to spread the cost of a new installation into manageable monthly direct debit payments rather than finding the full amount upfront.
The plan allows you to spread the cost over 12 or 24 months interest free. There is no obligation to pay a deposit, and your monthly payments begin once the installation is complete, not before.
A few things to understand about how the process works:
The application is completed online via a link sent directly by Novuna. It typically takes less than 10 minutes and you will receive a decision immediately. The credit check must be completed before work begins, so we will send the application link once you are happy with your quote and ready to proceed.
Blue Flame (Cornwall) Ltd is authorised and regulated by the Financial Conduct Authority (FRN 925204) for credit broking. We act as a credit broker, not a lender, and we do not receive a fee for the introduction to Novuna. Finance is provided by Novuna Personal Finance, a trading style of Mitsubishi HC Capital UK PLC, authorised and regulated by the FCA. A 14-day cooling off period applies to all applications. If you cancel within 14 days, the full outstanding balance becomes payable immediately.
Finance is subject to status and credit check. Not everyone will be approved, and approval cannot be guaranteed in advance. If you are concerned about your credit status, speak to our team and we can talk through your options.
Option 3: Government Grants for Heat Pumps (Boiler Upgrade Scheme)
If you are considering switching to a heat pump rather than replacing your existing heating system with a conventional boiler, the government’s Boiler Upgrade Scheme (BUS) could significantly reduce the installation cost.
The scheme is available to homes with different existing fuel types. Homes currently heated by natural gas can receive £7,500 towards an eligible heat pump installation, while homes switching from oil or LPG can receive £9,000.
The grant is applied directly to the cost of your installation by your MCS-certified installer, helping to reduce the amount you need to pay.
Currently, the scheme provides £7,500 towards the installation of an air-to-water or ground source heat pump, applied directly to your installation cost by your MCS-certified installer. For homes currently heated by oil or LPG, a temporary uplift to £9,000 has been announced and is expected to come into effect in summer 2026, running until March 2027.
The grant is applied for by your installer on your behalf through Ofgem. It is not an automatic entitlement, and eligibility is confirmed by Ofgem as part of the application process. The scheme is available once per property, which makes choosing the right installer a particularly important decision. Blue Flame is MCS certified and manages the full application process on your behalf as part of the installation.
For a detailed breakdown of how the scheme works, what has changed recently and who qualifies, read our full guide: What is the Boiler Upgrade Scheme and Can You Still Claim It?
You can also find out more about our heat pump and renewable installation services if you are at the stage of exploring your options.
Option 4: ECO4 (Free Boiler Replacement for Eligible Households)
If your household is on a low income or receives qualifying means-tested benefits, you may be eligible for a free boiler replacement through the government’s Energy Company Obligation scheme, known as ECO4.
ECO4 is funded by the UK’s largest domestic energy suppliers and is overseen by Ofgem. It can cover the full cost of replacing an inefficient boiler for eligible households, with no contribution required from you. Since its launch in April 2022 it has helped a significant number of UK households replace old, inefficient or broken boilers at no cost.
The scheme has been confirmed as running until 31 December 2026. There is no announced successor scheme for traditional boiler replacement after that date, so if you think you might be eligible, it is worth checking sooner rather than later.
Who may be eligible: Households receiving Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit or certain other means-tested benefits are most commonly eligible. Properties with an EPC rating of D or below are typically required. Some local councils also operate a flexible eligibility route for lower-income households not on qualifying benefits, and Cornwall Council is among those that participate.
How to check: ECO4 is delivered through energy suppliers and their approved installers rather than directly through Blue Flame. The most straightforward way to check your eligibility is through Ofgem’s own guidance at gov.uk, or through your current energy supplier. If you are unsure where to start, call our team and we will point you in the right direction.
Option 5: A Membership Plan to Manage Ongoing Heating Costs
This one works differently from the options above, but it is worth including because it addresses a concern many homeowners have alongside the upfront cost of a new boiler: what happens when something goes wrong afterwards?
Our membership plans are available via a monthly direct debit and are designed to take the unpredictability out of owning a boiler. Depending on the plan, membership includes your annual boiler service, priority emergency call-outs with a guaranteed response within 24 hours, 365 days a year, unlimited call-outs, discounts on any additional chargeable work and installations, and access to our technical team around the clock.
The Installation Membership is designed specifically for customers who have a new boiler fitted by us and want to protect that investment from day one. It is the most practical way to ensure your new boiler is serviced correctly every year, keeping the manufacturer warranty intact and catching any issues before they become expensive ones.
For customers weighing up the cost of a new boiler, knowing that ongoing maintenance and emergency cover is handled for a predictable monthly amount can make the overall decision considerably more comfortable.
More than 3,000 Cornwall homeowners are already on a plan. You can find full details on our memberships page.
A Note for Landlords
If you are a landlord with rental properties in Cornwall, replacing a boiler in a let property has its own considerations around timing, compliance and the obligations you have towards tenants. Blue Flame provides a dedicated service for landlords across Cornwall, covering new installations, servicing and cover plans, compliance and emergency repairs, all from one company with one point of contact.
Payment plan options and our landlord cover plans can both be discussed as part of the same conversation. Get in touch and we will find the right arrangement for your portfolio.
Get a Free Quote
Our Team at Blue Flame has been installing boilers across Cornwall for over 30 years, across gas, oil, LPG and solid fuel systems. Every installation starts with an in-person assessment, a clear and transparent quote, and an honest conversation about the best way to pay for it.
Call us on 01326 378122 or contact us online to arrange a visit and a free, no-obligation quote. You can also read what our customers say about us on our customer feedback page before you pick up the phone.