Are heat pumps expensive?

Key takeaways:

• Heat pumps may have higher upfront costs than gas boilers, but they offer serious long term savings
• The initial costs vary by household as each system needs to be adapted to suit individual heating needs
• Installation costs can be significantly reduced through the Boiler Upgrade Scheme that offsets £7,500

Heat pumps are becoming a popular clean energy heating solution, but concerns around initial costs remain. Understanding the factors influencing these costs can help determine if they’re worth the investment. Here’s a concise look at heat pump expenses and why they might be a smart, long-term choice for homeowners.

Key cost factors

Heat pump installation costs range from £7,000 to £45,000, depending on the type of pump, property size, and installation complexity. High demand for skilled installers can raise prices, but government grants like the UK’s Boiler Upgrade Scheme offer up to £7,500 to help offset these costs.

Air source heat pump installation costs depend on home size and whether additional upgrades, such as new radiators, are needed. Larger systems for bigger homes cost more but improve heating efficiency.

The installation scope depends on factors like home size and existing infrastructure. Complex setups, including underfloor heating or extra pipework, increase labour costs and installation time (typically 2–5 days). A well-designed system boosts efficiency and performance.

Installation & running costs

For a typical two-bedroom home, installation costs start at £5,450 after the BUS grant, with larger homes requiring more extensive systems. Professional installation ensures optimal efficiency and avoids costly maintenance, maximising performance and longevity. Here at Aira, your installation is included in the price.

Despite higher upfront costs, heat pumps are cost-efficient to run. An average household consuming 15,000 kWh of gas to heat could save up to £560 a year with a heat pump and Aira Zero.

Efficiency vs. traditional heating

Air source heat pumps convert one unit of electricity into 2.5–5 units of heat, achieving around 400% efficiency compared to gas boilers at 90%. By transferring heat instead of burning fuel, they reduce emissions and environmental impact. While installation is pricier than gas boilers, the high efficiency results in significant energy savings over time, reducing your energy bills by 25% annually.

Good insulation is key for heat pump effectiveness, as heat pumps gradually heat spaces. Insulating walls and roofs helps retain warmth, reducing overall energy needs. This not only cuts down on heating costs but also optimises the heat pump’s performance.

Long-term savings

Though the upfront cost of heat pumps can be high, they offer substantial financial benefits over time. With our partner Octopus Energy, you can save up to £560 annually on energy costs. Over years of use, these energy savings are likely to outweigh initial costs, making heat pumps a cost-effective choice in the long run.

Grants, such as the Boiler Upgrade Scheme, further lower costs, making heat pumps increasingly comparable to traditional systems. Heat pump savings are further compounded by the lack of boiler upkeep costs and Aira’s 15-Year Comfort Guarantee that covers all of your heat pump’s maintenance needs.

Conclusion

While heat pumps require a slightly higher initial investment, their long-term savings, efficiency, and environmental benefits make them a worthwhile option for those looking to future-proof their homes with sustainable heating.