Heat pumps review: cost, different types and will it save you money?

Heat pumps have been touted as the future of home heating in the UK. The Government has targets to encourage households to switch from traditional gas boilers to heat pumps – they are a greener way to keep your home warm as they utilise renewable energy sources. The goal is to net zero emissions by 2050. .

'Too expensive to compete with gas boilers’

For most homeowners, the upfront installation is the biggest factor in deciding whether to make the switch.

A typical gas boiler installation costs around £2,000. However, a heat pump installation can cost upwards of £12,000 before subsidies.

The Government currently offers a £7,500 grant to help households with the transition to a heat pump.

However, the funding is only available for fewer than 40,000 installations per year and set to expire in 2027.

While some studies suggest that costs could drop by 25% by 2030, experts agree that even in the best-case scenario, heat pumps are unlikely to become cheaper than gas boilers.

Heat pumps: greener than traditional boilers

As part of the Government’s drive to improve the nation’s eco standards, it has targeted installing 600,000 heat pumps in British homes each year by 2028.

But heat pumps aren’t particularly well known as even being an option when it comes to heating our homes.

However, for some, they may represent an option worth considering if you want to go for a low carbon option that could save you money thanks to the Government's Renewable Heat Incentives, which effectively pay you for going greener (we'll cover this in more detail later).

Interested? Get free quotes from local engineers to find out how much it'll cost to get a heat pump in your home. 

Heat pump types: air source or ground source

Heat pumps come in a couple of different forms.

For example, there are air source pumps.

As the name suggests, they absorb heat from the air outside your property and use that to heat your home and water.

The pump is placed outside your home and can still generate heat even when it’s cold outside. In fact, they can get heat even when it’s a chilly -15 degrees.

There are also ground source heat pumps, which use pipes buried in your garden.

The pumps extract heat from the ground, which is then transferred into your radiators, underfloor heating system, and\ hot water inside the house.

Essentially, they do the same job that a traditional heating system does, but are more environmentally friendly, and produce less CO2 in the process.

Will heat pumps save you money?

There are a few different ways that heat pumps save you cash.

Firstly, while they will need electricity in order to run, the actual amount used is likely going to be smaller because the pump is using renewable heat from the environment to heat your home.

As a result, you’re going to be using less energy overall than you would through a conventional electric heating system.

However, the Energy Saving Trust points out that you’re unlikely to save much, if at all, if you’re switching from a mains gas system.

Boiler Upgrade Scheme

The UK Government offers the Boiler Upgrade Scheme.

It provides grants of up to £7,500 to offset the cost of installing heat pumps.

You may be eligible if you own your home and are replacing fossil fuel heating systems.

This can significantly reduce the initial investment required.

The first step is to contact MSC-certified installers and get quotes.

Ofgem will contact you to confirm that the installer is acting on your behalf.

They might also contact you by phone or visit your property to check the installation.

MCS might contact you to conduct separate checks.

Buying and installing a heat pump: costs

The cost of installing a heat pump in the UK varies based on the type of system, the size of your home, and specific installation requirements. Here's a breakdown of the average costs:

Air source heat pumps are typically cost between £7,000 and £14,000, including installation.

Ground source heat pumps are somewhere in the region of £15,000 and £35,000, including installation.

Factors Influencing cost include ground conditions, type of installation and system size.

Is a heat pump right for my home?

It’s easy to assume that such technology is only going to be suitable for new builds, or at least modern properties.

But the reality is that this isn’t the case.

As the Energy Saving Trust points out, heat pumps can be fitted into pretty much any type of property and can actually be particularly effective on older buildings which are generally difficult to heat.

Of course, you will still need to establish whether a pump is really suitable for your home.

You’ll need the space outside the property to keep it for example, while the size of the pump you need will vary depending on the size of your home. As a general rule, the larger the property, the larger the heat pump required.

The insulation of your home is also crucial.

Heat pumps work best when producing heat at a lower temperature than traditional boilers, so you need to make sure your home is properly insulated and draught-proofed so that you don’t end up losing any of the heat generated.

Finally, you can’t ignore the fact that the pump will produce some noise.

It certainly won’t be as bad as some critics argue ‒ modern heat pumps are incredibly efficient, and so are unlikely to make much more noise than your fridge. But it’s still something to bear in mind.

If it's not for you, find out how much a traditional boiler will cost you by entering your details below.

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