Are heat pumps worth it?

Investing in heat pumps is generally a sound decision.

An air source heat pump typically yields savings of £4,340 over its lifespan compared to a gas boiler, allowing you to reduce your costs by embracing eco-friendly solutions.

This can be attributed to several factors, including escalating gas prices, the government’s Boiler Upgrade Scheme, the improving efficiency of heat pumps, and the longer lifespan of air source heat pumps, which generally last around 20 years compared to the 10-year lifespan of gas boilers.

Water source heat pumps have the potential to offer even greater energy bill savings, being typically 4.5 times more efficient than gas boilers and 1.5 times more efficient than air and ground source heat pumps.

While ground source heat pumps are notably more expensive, they can significantly decrease carbon emissions, future-proof your home from potential boiler bans, and ensure a consistent year-round heat supply.

When considering costs, it’s important to take into account potential additional expenses such as the need to modify your radiators or install underfloor heating before installing a heat pump.

Each of these factors will be examined in detail.

1. The changing cost of energy

Heat pumps exhibit remarkable efficiency, ranging from 300% to 600% more efficient than gas boilers. Nevertheless, they rely on electricity, which currently costs four times more than gas in the UK.

However, the landscape is evolving. Wholesale gas prices have surged by 404% in the past year, leading to substantial increases in annual expenses for millions of households, with further escalations anticipated.

The independent Climate Change Committee estimates that the average gas price will be 50% higher in 2030. Conversely, as gas prices rise, electricity is projected to become more affordable.

The government is actively working to eliminate green levies from electricity costs, a move that would significantly reduce the operational expenses of heat pumps.

These developments have spurred 60% of UK residents to consider transitioning from gas boilers to renewable alternatives.

Moreover, substantial savings can be achieved by integrating solar panels to power both your heat pump and electricity requirements.

2. Government grants

The primary government grant for heat pumps, known as the Boiler Upgrade Scheme, currently provides a £7,500 subsidy for the installation of air, ground, and water source heat pumps.

With typical costs for air and water source heat pumps amounting to around £10,000 for both purchase and installation, this presents an opportunity to acquire a top-tier system at a significantly reduced price.

By taking advantage of this scheme, you can capitalize on the overall cost-effectiveness of air or water source heat pumps in comparison to gas boilers.

Furthermore, a variety of other heat pump grants are accessible to low-income families across the UK. For additional details, you can visit our page on government grants for heat pumps.

3. The gas boiler ban

The Boiler Upgrade Scheme has evidently been designed in anticipation of the gas boiler ban, as well as the objective to install 600,000 heat pumps in homes annually by 2028, although the government has not committed to a specific ban date.

In response to a query from The Eco Experts regarding the set date for the gas boiler ban, a spokesperson from the Department for Business, Energy and Industrial Strategy stated, “We do not comment on speculation. We will set out plans to decarbonise heat and buildings through our comprehensive strategy this year, and our approach will be guided by ensuring the transition is fair, affordable, and practical.”

The gas boiler ban is now projected to be implemented in 2035, with a complete cessation of gas heating expected by 2040, making it sensible to leverage government initiatives to comply with the new regulations.

Approaching 2035, companies are likely to show diminished enthusiasm for producing new gas boilers for a diminishing customer base, leading to declining industry standards.

If you wish to expedite the process of finding your ideal heat pump, simply use our form, and our experts will reach out with their best prices.

4. Growing demand and increasing efficiency

When introducing the Boiler Upgrade Scheme, the government highlighted the growing popularity of heat pumps.

“We anticipate that the majority of applicants are inclined to choose air source heat pumps for transitioning to low-carbon heat, given their lower cost compared to other low-carbon heat alternatives,” it stated.

“This trend is also consistent with the Renewable Heat Incentive (RHI), where 81.5% of accredited domestic installations in 2019 were air source heat pumps.”

As demand increases, it is probable that supply will follow suit, leading to a substantial reduction in heat pump costs in the coming years.

Moreover, there is a continuous enhancement in heat pump efficiency. While the average rate stands at 300%, the top models have already achieved 500%, resulting in even greater energy bill savings over the lifespan of the system.

When coupled with the impending gas boiler ban, it becomes increasingly sensible to invest in a heat pump.

How much do heat pumps cost?

The price of heat pumps generally ranges from £10,000 to £49,000, varying based on the type of machine selected.

On average, air source heat pumps cost between £7,000 and £13,000, with the potential for a £7,500 reduction if the installer utilizes the Boiler Upgrade Scheme.

A water source heat pump typically carries an average cost of £10,000, although ownership or permission to use a body of water is required.

Fortunately, the Boiler Upgrade Scheme can also lower the cost of ground or water source heat pumps.

What are the benefits of a heat pump?