When looking at the cost of heat pumps, it’s important to consider all the factors involved, not just the cost of the heat pump itself.
Let’s look at the costs in more detail:
- Heat pump and installation costs
The cost of a heat pump itself will depend on the brand, model, and size you need. You then need to consider the heat pump installation cost, which will vary from house to house.
Generally, installing air source heat pumps will cost a lot less than ground source heat pumps because they are far easier to install. Whereas a ground source heat pump requires a lot of outside groundwork to bury the pipes into the ground.
According to the Energy Saving Trust, an air source heat pump, including installation, can cost between £7-13K. That price rises to £20-30K for a ground source heat pump.
But, as the government ramps up its efforts to phase out gas central heating, suggesting a ban on the installation of new boilers from 2035, the cost of heat pumps is expected to plummet over the coming years. - Government grants
As reported in Which?, from April 2022, homeowners in England, Scotland, and Wales will be able to apply for a government grant of £5,000 to help towards the cost of switching to a heat pump. This £5,000 grant will bring the cost of air source heat pumps closer to that of a new boiler.
Another scheme that rewards homeowners for switching to renewable energy is the Renewable Heat Incentive (RHI) scheme. People who join this scheme receive quarterly payments for seven years, based on the renewable heat they generate. It’s open to homeowners and private or social landlords in England, Scotland, and Wales. - Other costs
Heat pumps generate lower temperatures than boilers or electric heaters, so you may need to consider the cost of other upgrades a home will need to make a heat pump system work efficiently.
For example, radiators won’t heat up to the high temperatures a boiler can generate and may need to be replaced with larger radiators to heat the home adequately. And, as well as the cost of the new radiators, you’ll need to consider the extra installation costs and potential disruption if floors need to be dug up to incorporate new pipes.
There may also need to be upgrades to a home’s insulation because heat pumps aren’t very effective at heating poorly insulated homes. - Running costs
As a rule, air source heat pumps are one of the most efficient ways to heat a home and cost less to run than more traditional heating systems. This is because they are run entirely on electricity, and they deliver more heat energy than the electrical energy they use.
However, the running costs will vary from house to house, and depend on how well the home is insulated, the energy tariff and the temperature the thermostat is set to. The higher the temperature, the harder the unit will need to work, and therefore the more energy it will use. - Maintenance costs
Air source heat pumps have a working life of around 15-20 years. And, just like boilers, they need to be professionally serviced. Usually, they need to be serviced every two or three years. But if the compressor is inside the home, they need to be serviced annually. The service cost will vary, but you can expect to pay in the region of £150-£200.