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What's the Cost to Replace a Commercial Boiler in NYC?

December 09, 2019

Think it’s time to replace your building’s boiler system? The first question is always, How much is this going to cost?

That question is tough to answer because the cost to replace a commercial boiler system can range anywhere from$10,000 to over $50,000.

Like any major project, the price of a boiler install/replacement varies depending on a handful of factors, such as:

  • The size of the boiler

  • The efficiency level of the boiler

  • The boiler type

  • Whether additional modifications are needed (i.e. piping, boiler room, components)

To help you budget for your boiler replacement project, we’ll explain how each of the factors above impact cost.

Need an estimate for your commercial boiler replacement? Just call Ranshaw. We’ll send over a licensed professional who will thoroughly inspect your current system and measure your building’s heating needs before providing you with a fair, upfront price estimate.

Schedule estimate

4 price factors of a commercial boiler replacement

1. The size of the boiler

Commercial boilers are measured in “BTUs”, which stands for British Thermal Units (a measurement of heat energy). The higher the BTU output, the more the boiler system will cost.

Commercial boilers typically range in size anywhere from 350,000 BTUs to over 1,000,000 BTUs. Note: 1 BTU is the amount of energy required to raise 1 pound of water by 1°F. Depending on the size of the building or boiler system design, there may be multiple boilers used to heat you building.

Only a licensed professional can accurately determine the size boiler your building needs by performing a “heat loss survey” for hydronic systems or a “radiator survey” for steam systems.

A heat loss or radiator survey basically measures how much heat your building loses per hour. This calculation takes into account a wide range of factors such as:

  • The square footage of the building

  • The level of insulation

  • The number of windows in the building

  • Etc.

Once this load calculation is complete, a licensed professional will use that information to match your building’s heating needs with an accurately-sized boiler system.

2. The efficiency level of the boiler

Commercial boiler efficiency levels are expressed in a percentage, called an AFUE rating (Annual Fuel Utilization Efficiency). The higher the AFUE rating, the more efficient the boiler system and the more it will cost.

However, the more efficient the system, the less it will cost to heat your building on a day-to-day basis. The bottom line is that higher-efficiency boilers may cost more upfront but they also save you more money on utility bills in the long run.

For example, a boiler system with an 88% AFUE rating means that for every $100 that your business spends on heating….

  • $88 goes toward actual heat production

  • $12 worth of heat is lost via exhaust gases

Currently the DOE (Department of Energy), mandates that all commercial boilers have a minimum efficiency of 77% to 84% depending on the specific type, size, and fuel. Commercial boilers can reach as high as 99% efficient, though, depending on the type of boiler you choose.

Note: The federal minimums have a tendency to change every 5-10 years. In fact, the minimum efficiency levels could soon increase to as high as 88%. At Ranshaw, we can help you navigate the ever-changing standards for boiler efficiency levels and we’ll make sure the boiler system we install meets all federal and local codes for years to come.

3. The boiler type

When it comes to commercial boiler systems, the type of boiler you install will factor into the overall price of the installation.

To help you better understand how much you might pay, we’ve listed below the 3 different boiler types in order of most expensive to least expensive to install:

  • Combination oil/gas boilers

  • Oil boilers

  • Gas boilers

Gas boilers are the most common type of commercial boilers here in the New York City area. These boilers are often the least expensive in terms of ongoing operational costs.

Whether additional modifications are needed

The overall cost of your commercial boiler installation will increase if additional modifications are needed to other components of your heating system, aside from the boiler equipment itself.

Some examples of additional modifications include:

  • Installing new pumps

  • Installing a new expansion tank

  • Piping modifications or replacements

  • Boiler room modifications/ventilation

  • Radiators

  • Chimney modifications

An experienced commercial boiler installer will evaluate your heating system in its entirety and determine what exactly needs to be replaced along with installing the replacement boiler.

Want an accurate price estimate for your commercial boiler installation?

Just contact us to request a commercial boiler installation estimate.

Schedule estimate

We’ll send over a licensed boiler professional who can inspect your building’s current boiler system and provide a fair, down-to-the-penny quote for your boiler replacement.

No matter your boiler needs or questions, we can help. Ranshaw offers a full range of commercial boiler services—from inspections to installations to repairs and maintenance—so we’re extremely knowledgeable when it comes to your building’s boiler system.

We have 60+ years of experience helping companies save money on energy bills with our high-quality boiler services, and we can do the same for you.

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