Heat pump pricing

Air source heat pumps (ASHPs) are a popular option for homeowners. They help save energy and reduce carbon emissions.

One common question arises: how much do these systems actually cost? This article will delve into the costs associated with air source heat pumps, including installation, energy savings, and overall cost-effectiveness. We’ll also explore the UK market to give you a comprehensive understanding of what to expect.

Before we dive into costs, it’s crucial to understand what air source heat pumps are and how they function. An air source heat pump absorbs heat from the outside air and transfers it into your home. It can be used for heating your home and hot water making it a great alternative to a gas boiler for many households.

The heat pump that we supply and install is an air to water heat pump. These are the most common type and distribute heat via your wet central heating system. They are suitable for underfloor heating systems or large radiators, which operate at lower temperatures.

Heat pump installation costs

The cost to install an air source heat pump can vary a lot. This depends on the type of system, the size of your home, and where you live. Your current home insulation, the size of your radiators, and the space you have are all important factors. 

According to the Energy Savings Trust, the cost of an air source heat pump can vary between £6,500 to £11,500. Your estimate will probably take into account the following:

• Heat pump unit: The price of the unit itself, installation, and any necessary modifications to your existing heating system.
• Size and type of heat pump: Larger homes may require more powerful pumps, leading to higher costs. 
• Home Modifications: If your home needs extra work, it can cost more. For example, upgrading radiators or adding underfloor heating can raise the total cost.

Location: Installation costs can vary by region due to differences in labour rates and availability of qualified installers.

Heat pump grants and incentives

In the UK, government incentives like the Boiler Upgrade Scheme can offset the initial costs of an air source heat pump. The BUS grant pays eligible home owners a grant of £7,500 towards heat pump costs. There are eligibility checks for the grant so it is worth checking that you are eligible.

Some UK banks are also offering customers incentives to switch to an air source heat pump. These offers are to encourage homeowners to improve the energy efficiency of their homes. Some of the banks that are offering this incentive are:

Barclays: £2,000 cashback for installing a heat pump

Eligibility: You must be an existing Barclays mortgage customer and install a home energy improvement such as a heat pump. You can apply here.

Lloyds Bank: Up to £2,000 Eco home reward towards a range of energy upgrades

Eligibility: You must be a Lloyds Bank mortgage customer to receive the offer. Apply here.

Halifax: Up to £2,000 green living reward

Eligibility: You must apply for either a new mortgage or borrowing after July 2024. More details here.

Heat pump efficiency

Air source heat pumps are one of the most efficient ways of heating your home. They generate up to three times the amount of heat compared to a traditional G rated gas boiler. This makes them up to 300% more efficient in comparison. They are a sustainable, low-carbon option to heat your home and hot water, helping you save energy and money.

Once installed, air source heat pumps could offer significant savings on energy bills. The efficiency of these systems is measured by the Coefficient of Performance (COP). A COP of 3 means that for every unit of electricity used, the pump generates three units of heat. This is why heat pumps are so efficient compared to gas boilers. A traditional gas boiler will only ever be 90-100% efficient. 

Several things effect how efficient your heat pump will be:

• Temperature: Your heat pump will work harder in the winter months and therefore be slightly less efficient.
• Design: An undersized heat pump may not be able to keep up with the amount of heat the home loses (heat loss), while an oversized heat pump may turn on and off frequently, which decreases efficiency.
• Insulation: If your home is well-insulated, a heat pump doesn’t work as hard, as your property can retain its heat better.
• Maintenance: Like any heating system, ensuring you keep up with maintenance and servicing ensures the heat pump operates at its optimal efficiency.
• Radiator size: The size and type of your radiators can affect efficiency. Bigger radiators are more efficient because the heat pump doesn’t have to operate at such a high temperature. Underfloor heating is also a great option due to its larger surface area. If you want to read more about radiators, this post goes into more detail. 
• Weather compensation: Getting the weather compensation right can help improve efficiency.
• Hot water: Making sure the hot water isn’t set too hot can help improve efficiency. Most heat pumps are designed to emit hot water at temperatures between 45-50°C, which covers most needs.

If you’d like even more detail on heat pump efficiencies, you can read our comprehensive post here. 

Extra energy saving measures

Investing in solar panels and domestic batteries alongside your heat pump upgrade could mean you are energy self sufficient. This not only moves you away from paying energy bills again, but could add significant value to your property. It’s far more desirable to buy a property where you won’t have to worry about paying energy bills or a cold winter.

The cost-effectiveness of air source heat pumps depends on a few factors. These include your current heating system and energy prices. In general, air source heat pumps (ASHPs) save more money if you replace an old, inefficient system. This includes things like a G-rated gas boiler or oil heating.

Heat pump operating costs

You could save up to £290 a year on your energy bills (4) if you replace an old G-rated gas boiler. If you replace a new A-rated gas boiler, your energy bills could be similar.

If you replace old electric storage heaters, you could save up to £1,000 each year on energy bills. Heat pump efficiency changes during the year. To get a true cost, check the average for the entire year.

The cost to run an air source heat pump could be zero. This happens if the heat pump uses renewable energy from sources like solar panels on your property. Actual costs are hard to determine. They depend on how the heating system is used and installed. They also depend on the system’s efficiency and your home’s heat loss profile.  

Just as importantly, you will also save almost two tonnes of CO2 emissions every year(3) by switching to an air source heat pump. For context, that means not driving a car for a whole year. It also has the same carbon benefit as growing 100 trees each year.

Will a heat pump cost me more to run?

Running costs can vary on several factors such as your energy tariff, and the performance of your heat pump. With today’s electricity prices, using an air source heat pump will cost about the same as a regular gas boiler. This is true unless you choose a special tariff for heat pumps.

However, if you’re replacing an older, G-rated gas boiler, you could save around £290 a year on your energy bills (6). 

You can save even more by switching to a heat pump tariff. For example, the EDF Heat Pump and Save tracker(3) tariff offers zero standing charges for 12 months. You also pay less for running your air source heat pump at certain times.

Are air source heat pumps cost effective?

While the upfront costs of air source heat pumps may seem high, the long-term savings could be substantial. The exact savings will depend on how much energy you currently use. However, homeowners can lower their energy bills. This is especially true if they use a heat pump with other energy-saving options like solar panels and batteries.

When you’re ready to get in touch and talk about upgrading, drop us a message. 

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