Costs & prices for replacing an oil heating system
Many buildings in Switzerland are still heated with oil. However, rising energy prices, stricter regulations, and attractive subsidy programs are leading more and more owners to consider replacing their old oil heating systems. Often, these systems are technically outdated, inefficient, or cause unnecessarily high operating costs.
Anyone planning to replace their oil heating system today is faced with important questions: Which heating systems make sense, how much will the investment cost, and what support is available from the government? This guide provides clear information on the costs you can expect, the alternatives available, and when it makes financial sense to switch.
How much does it cost to replace an oil heating system?
The total cost of replacing a heating system varies greatly depending on the system chosen and the initial structural conditions. To give you a realistic idea, you will find the most important guidelines right at the beginning.
Costs for new heating systems, including installation
Air-to-waterheat pump
• Typical investment: approx. $37,000–$44,000
• Suitable for radiators and underfloor heating systems
Air-to-air heatpump
• Total cost usually in the range of $33,000–$37,000
• Quick installation, minimal construction work
Brine-water heat pump (ground source)
• Total costs often between $48,000–$58,000
• Including drilling, installation, and commissioning
Removal of old oil heating system and tank disposal
• Cost range: approx. $5,000–$7,000
• Depends on tank type, accessibility, and safety measures
Annual operating costs (average values)
• Air-to-air: between $1,400 and $2,200
• Air-to-water: between $1,300 and $2,300
• Brine-water: between $1,100 and $2,100
• Maintenance for all systems: between CHF 300 and CHF 500
Practical value: In many single-family homes, the total cost of switching from oil to a heat pump is realistically between CHF 40,000 and CHF 50,000.
What factors influence the final price?
The actual costs depend heavily on the building. The heating energy requirement is the decisive factor: poorly insulated houses require more powerful systems, which increases the investment. The existing heat distribution system also plays a role. Classic radiators require higher flow temperatures than underfloor heating, which influences the design of the heat pump.
Additional costs can arise from long pipe runs, adjustments to the electrical installation, or technical rooms that are difficult to access. In the case of geothermal heat pumps, geological conditions and drilling depths must also be taken into account. This is why two similar houses with the same living space can incur very different investment costs.
Why heat pumps are now the standard solution for replacing oil heating systems
Heat pumps have established themselves in Switzerland as the preferred alternative to oil heating. They use environmental energy from the air or ground and only require electricity to operate. This significantly reduces ongoing heating costs.
Unlike oil heating, no energy is burned; instead, existing heat is made usable. Modern heat pumps achieve high efficiency values and are now also suitable for many older buildings.
In addition, owners benefit from legal advantages: in numerous cantons, replacing an existing oil heating system with a fossil fuel system is no longer permitted. Heat pumps meet these requirements and at the same time significantly reduce CO₂ emissions.
Is my house suitable for a heat pump?
Whether a heat pump works efficiently depends less on the year of manufacture than is often assumed. The decisive factor is the correct dimensioning of the system. Even houses with radiators can usually be converted without any problems if the heating load is calculated accurately.
In many cases, hydraulic balancing or replacing individual radiators is sufficient to reduce the flow temperatures. For poorly insulated buildings, it may be advisable to combine this with selective renovation measures. Ground source heat pumps also require suitable soil conditions and sufficient space. A specialist company can reliably assess this as part of an analysis.
Heat pumps in comparison
- Air-to-air heat pump: a cost-effective entry-level option This solution uses outside air as an energy source and distributes heat throughout the building via air systems. It is relatively inexpensive and quick to install. Particularly in well-insulated houses, it impresses with its simple technology and low operating costs. Air-to-water heat pump: flexible and widely used The air-to-water heat pump is the most common choice when replacing a heating system. It reliably supplies existing radiators or underfloor heating with heat. The initial costs are higher than for air-to-air systems, but energy consumption is lower and the possible applications are versatile.
- Brine-water heat pump: maximum efficiency This system operates particularly efficiently thanks to constant temperatures in the ground. The higher initial costs for drilling are offset in the long term by very low operating costs. For owners with a long-term planning horizon, this is often the most economical solution.
Subsidies for heat pumps: Tax benefits when replacing your heating system
The replacement of fossil fuel heating systems is heavily subsidized in Switzerland. Depending on the canton and municipality, subsidies of several thousand francs are available—especially for heat pumps.
In addition, investments in renewable heating systems and the costs of dismantling old oil heating systems can be claimed for tax purposes. The energiefranken.ch platform provides a reliable overview of available subsidy programs.
Heat pumps & subsidies in Switzerland:
Zurich: +10–25% subsidypotential
The canton of Zurich offers attractive subsidy programs for heat pumps, especially when replacing oil or gas heating systems. High subsidy rates and additional municipal contributions can significantly reduce investment costs.
Bern: +15–30% subsidypotential
In the canton of Bern, subsidies for heat pumps are above average. Thanks to clearly structured cantonal programs, considerable savings can be achieved for new installations and heating renovations.
Aargau: +10–20% subsidypotential
The canton of Aargau supports the switch to heat pumps with substantial subsidies. The exact amount depends on the type of building, efficiency class, and the heating system being replaced.
Vaud (Lausanne): +15–30% subsidypotential
In western Switzerland, particularly in the canton of Vaud, cantonal and municipal programs strongly promote the use of renewable heating systems. Heat pumps often benefit from combined subsidy models here.
Geneva: +20–35% subsidypotential
The canton of Geneva is strongly committed to decarbonizing its building stock. Subsidies for heat pumps are correspondingly high, especially for the complete replacement of fossil fuel heating systems.
Alternatives to oil heating
In addition to heat pumps, pellet heating systems or district heating may also be suitable in certain situations. Pellet heating systems are particularly suitable for higher heat requirements or when high flow temperatures are needed. However, they require storage space and regular maintenance.
District heating is a convenient solution that requires little space, provided that a connection is possible. The running costs depend heavily on the regional provider, but there is no need to operate your own heating system.
Conclusion: Why replacing your oil heating system makes more sense today than ever before
Replacing an oil heating system is an investment in lower energy costs, greater planning security, and a sustainable future. Heat pumps offer clear long-term advantages over fossil fuel systems – both ecologically and economically. The optimal solution depends on the building, budget, and usage.
If you want to make informed decisions, you should compare several quotes and seek advice from regional specialist companies. This will enable you to implement the right heating solution efficiently and with a view to the future.
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