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

Heat pumps are touted as an eco-friendly way to keep your home warm, but they can be extremely expensive – even with the generous grants on offer.

Heat pumps 'will never be cheaper than gas boilers'

The first and most important thing to point out is that heat pumps are far more expensive than traditional gas boilers.

A boiler installation costs around £2,000, but a heat pump can cost upwards of £12,000 to install, although the cost will be lower if you qualify for a subsidy (more on that later).

While some studies suggest heat pump costs could fall 25% by 2030, many believe heat pumps are unlikely to be the cheaper option.

“I don’t think you will ever see heat pumps priced on parity with gas boilers, because it’s like comparing a bicycle to a car,” said Daniel Särefjord, the UK CEO of heat pump installers Aira.

“A heat pump is a more complex device,” said Mr Särefjord. “A gas boiler is an 800 degree flame that hits water. It’s an incredibly simple but also incredibly inefficient device.”

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.

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

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.

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 between £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