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No, boilers and water heaters are not interchangeable because they serve different primary functions. Boilers are used for central heating systems, providing hot water or steam to heat your home. In contrast, a water heater's purpose is to supply hot water for daily household use, such as for faucets and showers. A water heater alone cannot supply the warm water or steam needed for a central heating system.

While they are not interchangeable, it is common to have both a boiler and a water heater. In fact, a conventional boiler often works best when a water heater system is already in place. The two systems can be combined to provide both heating and hot water, either by pairing a boiler with an indirect water heater or by installing a premade combination boiler-water heater unit. For home heating, some homeowners may also opt for a furnace instead of a boiler.

You can save money on heating oil through a combination of improving home efficiency and smart purchasing strategies.

Home Efficiency and Usage:

• Improve Insulation: Ensure your home, especially the basement and attic, is well-insulated and sealed against drafts to prevent heat leakage.

• Manage Your Thermostat: Use a properly calibrated and programmable thermostat. Lower the temperature by a few degrees, particularly when you are away from home or asleep.

Purchasing Strategies:

• Buy in the Off-Season: Order heating oil during the summer months when prices are generally at their lowest. This strategy is most effective if you have a large primary tank or a separate storage tank to accommodate bulk deliveries.

• Consider a Delivery Contract: Some companies offer contracts with a set price for the term. This can lead to savings if market prices for oil increase, but you might pay more if prices drop.

A furnace is a big unit where gas, heating oil, or electricity heats the air. The warmed air is then pushed back out through ducts and vents. 

A boiler uses electricity, heating oil, or gas to heat water that is pushed into the room through a radiator. This is one of the oldest and most effective ways to heat a house, but radiators can also be unsightly and leave hot and cold spots in the room.

Heat pumps use a refrigerant to move heat from outside into the house and return it to the room through ducts and vents.

All modern boilers are condensing boilers because they’re the most efficient type. Instead of extra heat leaving through the flue, these boilers trap the heat and use it to heat the house. Whether you choose a combi boiler, system boiler, or regular boiler, you can opt to get a condensing system. If you have an old boiler that’s not a condensing boiler, it’s a good idea to get an upgrade.