How Much Does It Cost to Install an Outdoor Boiler System?

By Elizabeth Michael

September 16, 2025

Outdoor wood boilers are growing in popularity as a cost-effective alternative to traditional heating systems. These versatile units easily connect to existing HVAC systems, and they use firewood to heat the home and water for appliances. They can also serve as a backup heating source in the event of a power outage, providing added peace of mind when the weather becomes chilly.

This May Also Interest You: What Is an Outdoor Boiler?

While the exact costs to install a wood boiler can vary, the average price range is $12,000 to $17,000 (CAD 16,615 to CAD 23,538).

What Is an Outdoor Wood Boiler or Wood-Burning Boiler?

An outdoor wood boiler or wood-burning boiler is an exterior boiler system that uses firewood to heat water and circulates it into the home. The outdoor units consist of a firebox that holds firewood. A water-filled chamber called a water jacket surrounds the firebox. A component called an aquastat monitors the water temperature in the water jacket and keeps the boiler water within a specific temperature range.

Outdoor boilers are also attached to insulated underground pipes that connect to heat exchangers inside HVAC systems and other appliances. When heat or hot water is needed inside the home, the aquastat sends a signal to the firebox to open the damper. The open damper and a fan inside the firebox allow the firewood to burn stronger and heat up the water. The heated water then travels through the underground pipes and into the home.

Benefits of Wood Boiler Heating Systems

Many homeowners are choosing to install outdoor boilers as an alternative to traditional heating systems. Wood boilers offer many benefits, including cleaner indoor air, energy independence and steady heating. Burning wood tends to be more cost-effective than burning propane or heating oil, and wood boilers can last for decades when properly maintained.

Installing the boiler outdoors means you won't have to deal with smoke, odors or fumes inside your home, and the unit won't take up any of your interior space. Because wood boilers are energy-independent, you won't have to anticipate increased fuel costs. The units are compatible with existing heating systems like radiators and floor heating, and they can also heat your pool or hot tub.

More Related Articles:

How Much Does It Cost to Install an Outdoor Boiler System?

On average, boiler installation (including parts and labor) can range from around $12,000 to $17,000 (CAD 16,615 to CAD 23,538). However, it's important to note that these are just estimates. The actual cost to install an outdoor wood boiler can vary greatly, depending on several factors. Boiler make and model, boiler size and contractor/labor costs can all come into play when you schedule a new boiler installation. If you need to install insulated underground pipes, this may require professional plumbing service and lead to additional costs.

If you're considering installing a new outdoor boiler, consult a professional HVAC contractor. They can provide an accurate estimate and advise on the best system for your home heating needs and budget. It's also important to check local guidelines to ensure adherence to emissions, permitting and placement regulations.

How Do I Incorporate an Outdoor Boiler Into My Existing HVAC System?

Connecting an outdoor boiler to an existing interior HVAC system entails several steps and typically requires the assistance of a professional plumber and HVAC technician. To successfully connect the two appliances, you'll need to install a water-to-air heat exchanger inside your furnace's main duct (plenum).

Once the exchanger is properly installed, it's connected to the outdoor boiler via insulated underground pipes. When the boiler runs, the heated water circulates through the insulated pipes and into the heating system. The water-to-air exchanger pulls the warm air created by the water from the pipes and pushes it through the HVAC system into the home.

View Plans in Your Area
Search Icon

Sign up for HomeServe emails!

Get the latest news, tips and promotional messages, including special offers.