Recent calculations indicate that households can achieve significant cost savings by capitalising on government grants for air source heat pump installations. Energy-efficiency grants cover upfront installation fees and when partnered with low air-source heat pump running costs; this winning combination offers an enticing alternative to traditional gas or oil boilers.
While the upfront cost of a heat pump installation might seem steep, government schemes are in place to reduce this financial barrier. A £7,500 discount is now available, making heat pumps more accessible and for some they can get free installation. However, concerns about air source heat pump running costs persist, primarily due to electricity being more expensive than gas.
It’s true that electricity costs more per unit than gas, with the current price cap at 29p/kWh for electricity and 7p/kWh for gas. To match the running costs of gas central heating, a heat pump would need to be three times as efficient. This raises questions about their feasibility and performance in colder weather.
Apply for the ECO4 grant: People eligible get free a heat pump, solar panels and insulation installation.
Air source heat pump running costs
Now, let’s explore the potential costs associated with having heat pumps for home heating. A heat pump is three times as efficient as other heating methods because it produces three units of heat for every unit of electricity it uses.
Considering an electricity price of £0.27 per kWh, the annual cost for heating and hot water using a heat pump would be £879.66. Notably, this calculation excludes a standing charge for electricity, assuming it’s already covered.
Heat Pump Annual Heating Cost Compared to LPG, Oil Boiler and Gas Boiler.
What are the Benefits of a Heat Pump?
If you recently saw the Channel 5 documentary on Air Source Heat Pumps you may be left wanting to know more. Heat pumps come with many benefits including:
- Lower Running Costs: More efficient than traditional boilers, a heat pump can bring massive savings on your energy bills.
- Reducing Carbon Footprint: Heat pumps use electricity instead of gas, producing very few carbon emissions.
- Government Grants: The UK government has grants on offer that are put in place to help homeowners switch to heat pumps.
- Improved Air Quality: No toxic pollutants are produced ny heat pumps which improves the quality of air in your property and neighbourhood.
What is the Current Cost of a Air Source Heat Pump?
Air source heat pumps in the UK can cost a lot less than other heat pump options such as ground source heat pumps. However, the exact cost will vary depending on your situation:
| Size of Property | Heat Pump Type | Size of Heat Pump | Average Cost |
| 1 Bedroom | Air Source | 3kW | £1,500 – £4,000 |
| 2-3 Bedrooms | Air Source | 4-5kW | £4,000 – £8,400 |
| 4-5 Bedrooms | Air Source | 10kW | £6,000 – £11,000 |
To work out the running costs of a heat pump we need to know the heating needs of a property and the current energy costs in the UK – we also need to know the Coefficient of Performance (COP).
Coefficient of Performance (COP)
This is a refrigeration system’s measurement of it’s ability to remove heat from a cold source to the supplied energy for its operation. In this case, a heat pump taking the cold air from outside and turning it into heat for the home.
| Size of Property | Yearly Energy Demand | Annual Running Costs |
| 1 Bedroom | 8,000 kWh | £830 |
| 2-3 Bedroom | 12,000 kWh | £1,150 |
| 4+ Bedrooms | 17,000 kWh | £1,600 |
Why heat pumps can be cheaper to run:
1. Efficiency: Heat pumps are super-efficient. They move heat into your home using way less electricity than burning gas in a boiler.
2. Fuel Costs: Gas prices in the UK are rising. Electricity for heat pumps is more stable and can even be cheaper with green energy plans.
3. Good for the Environment: Heat pumps produce fewer emissions than gas boilers, which can save you money and might get you some eco-friendly benefits.
4. Less Maintenance: Heat pumps usually need less fixing than gas boilers, which means less money spent on repairs in the long run.
Factors influencing efficiency
Heat pumps are smart when it comes to efficiency. As mentioned before heat pumps can give you up to three times more heat than the electricity they use. This is why using them brings people’s bills down significantly, and why they are becoming such a popular choice. Plus, in the UK, you can get government support on financing heat pump and other energy efficient heating systems installation.
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- Home Size: The larger your home, the more energy the heat pump may require.
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- Insulation Quality: Well-insulated homes retain heat more effectively, influencing the pump’s energy consumption.
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- Preferred Temperature: The desired indoor temperature also plays a role in determining energy usage
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- Energy Efficient Boiler: Modern boilers are more efficient than older boilers.
How does an air source heat pump work?
explanation of how air source heat pumps work-
- Air source heat pumps use the same type of technology that keeps fridges cold, but in reverse.
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- Heat energy is taken from the outside air temperature and turns into gas as it warms up. Air source heat pumps still work perfectly even below -1°C outside temperature.
Available incentives
| Name of grant | What it is | Eligibility |
| ECO4 Scheme | The ECO4 scheme targets the lowest-efficiency homes across the UK. Eligible homes can receive property insulation, solar panels and a heat pump for FREE. | People on a specific list of benefits |
| The Boiler Upgrade Scheme (BUS) | The BUS scheme if for homes using fossil fuels, and there is a discount voucher available to make the switch to a renewable energy solution. This includes biomass, air-source heat pumps (ASHP) and ground-source heat pumps (GSHP). | Homeowners and certain types of landlords |
| Home Upgrade Grant (HUG) | The HUG scheme commonly funds loft insulation, sometimes cavity wall insulation, and occasionally under-floor insulation. Depending on your property, a heat pump may be recommended under the scheme too. | Individuals who meet certain criteria |
In the UK, heat pumps are generally the money-saving winners when compared to other types of heating systems.
