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Heating Fuels6 min read20 April 2025

LPG Heating Explained: Everything You Need to Know

LPG is a popular heating fuel for off-grid properties. Here's a complete guide to how it works, costs, and whether it's right for your home.

LPG Heating Explained: Everything You Need to Know

What Is LPG Heating?

LPG (Liquefied Petroleum Gas) is a byproduct of natural gas processing and crude oil refining. The most common form used for home heating is propane (butane is also used, mainly for portable applications). LPG is stored in liquid form under pressure in a tank on your property and converted to gas when it's used.

It's a popular choice for rural properties that aren't connected to the mains gas network.

How LPG Heating Works

LPG boilers work on the same principles as mains gas boilers — gas burns to heat water for central heating and domestic hot water. The boiler technology is largely identical; the main difference is the fuel source and storage.

LPG engineers must hold specific ACS qualifications for LPG work (in addition to or separate from their gas qualifications).

LPG Tank Options

Bulk Tank (most common)

A bulk storage tank (typically 1,000 litres or larger) is installed on your property and filled periodically by a tanker. Tanks can be:

  • **Above ground** (common, lower cost)
  • **Underground** (more aesthetically pleasing, higher cost)
  • Tanks are typically rented from the LPG supplier who also delivers the fuel, or purchased outright for more supplier flexibility.

    Cylinder Supply

    For smaller or lower-demand properties, LPG can be supplied in cylinders. This is generally more expensive per unit and requires more frequent management.

    LPG Costs

    LPG is generally more expensive per kWh than mains gas but typically cheaper than electricity for heating. Approximate 2025 costs:

    | Fuel | Cost per kWh |

    |------|-------------|

    | Mains gas | ~7p |
    | Heating oil | ~8–10p |
    | LPG | ~10–13p |
    | Electricity | ~24–28p |

    Annual heating costs for a typical 3-bedroom home on LPG: approximately £1,700–£2,200.

    Advantages of LPG

  • **Cleaner than oil** — lower carbon emissions per unit of heat
  • **Similar technology to gas** — comparable boilers and controls
  • **No electricity dependency** (unlike heat pumps)
  • **Tank can be underground** — less visual impact than above-ground oil tanks
  • **No oil spill risk** — propane vapour disperses safely; it doesn't contaminate soil
  • Switching from LPG to a Heat Pump

    With LPG being one of the most expensive heating fuels, many LPG users find heat pumps financially attractive — particularly with the £7,500 Boiler Upgrade Scheme grant available. The running cost differential can be significant.

    For LPG boiler installation, servicing, and advice on switching to a heat pump, call Halo Heating on 01483 676108.

    Need Professional Help?

    Our Gas Safe registered engineers cover Surrey and surrounding areas. Call for a free quote or to book an engineer.

    Call 01483 676108