How much does an air source heat pump cost?
Imagine slashing your heating bills while simultaneously reducing your home's carbon emissions. An air source heat pump seamlessly and efficiently does both.
We'll unpack the upfront costs, the grants available in the UK, the running costs compared to traditional heating methods and the installation and maintenance costs of an air source heat pump.
What does an air source heat pump cost?
The average cost of an air source heat pump system can range anywhere between £5,450 and £12,000 in the UK, including the cost of installation and taking into account government grants.
This range is affected by various factors such as the size and power of the unit, the brand, the complexity of the installation process and any additional requirements like larger radiators or integration with an existing hot water system.
While installation costs may be higher than a traditional gas boiler, these costs are mitigated by the significant energy bill savings a heat pump provides over time. There are also numerous heat pump grants in the UK to help homeowners significantly lower their upfront costs.
What is an air source heat pump?
An air source heat pump is a sustainable heating solution that harnesses the heat from the outside air to warm your home. Eco-friendly and more cost-effective in the long run than conventional gas boilers, this system operates by extracting natural heat from the air, which - even at low temperatures - contains thermal energy.
Once collected, the heat pump uses electricity, which can be sourced from renewable supplies, to provide warmth through your home's radiators or underfloor heating systems.
How much will your heat pump cost?
What type of home do you live in?
Air source heat pump grants in the UK
Air source heat pump grant in England and Wales
The Boiler Upgrade Scheme (BUS) is an initiative by the UK government to encourage people to replace their existing gas or oil boilers with a greener heating system.
Homeowners switching to an air source heat pump in England or Wales can apply for a grant of up to £7,500. To qualify, you must own the property, have a valid EPC, and ensure the installation is done by an MCS-certified installer.
With our hassle-free switch, we'll apply for the BUS grant on your behalf and deduct it from your quote.
Air source heat pump grant in Scotland
In Scotland, the Home Energy Scotland Grant and Loan provides homeowners a grant of up to £7,500 towards the cost of their heat pump installation. An additional £1,500 is also available for rural properties.
The financial assistance doesn't end there – Scottish homeowners also have access to an interest-free loan of up to £7,500. This is applicable for both retrofits of existing properties and new-build projects.
Calculating your own air source heat pump running costs
Want to create your own heat pump cost calculator?
First, find your yearly energy usage (you can usually find this in your energy provider's app or website). Divide this number by the expected coefficient energy performance (4.5) and multiply this by the current cost of electricity (27p).
A practical example
For a practical example, let's use a well-insulated, four-bedroom detached house, requiring about 20,000 kWh for heating per year. If we assume the heat pump efficiency, or Coefficient of Performance (COP), is 4.5 and the price of electricity is 27p per kWh, the annual cost to run the pump would be:
Annual heating costs = (20,000 kWh / 4.5 COP) x £0.27 = £1200
These calculations underscore not just the potential energy savings, which can range from £65 to as much as £1,100 per annum according to the Energy Saving Trust, but also how energy prices and home specifics, like loft insulation, household heat demand and energy usage, can cause running costs to vary.
How these compare to a traditional gas boiler
Air to water heat pumps significantly lower running costs compared to conventional gas boilers. Because they use fossil fuels, a gas boiler's maximum efficiency caps at about 92%, whereas heat pumps can reach more than 400%. This means that for every unit of electricity, an efficient heat pump can provide 4X the amount of heat.
Whilst gas prices are lower than electricity, heat pumps, coupled with the right central heating infrastructure, like underfloor heating or larger radiators, deliver heat more consistently and efficiently than standard boilers. This means they are still cheaper to run than a traditional gas boiler.
Air source heat pump running costs combined with solar panels
Adding solar panels can significantly reduce a heat pump's running costs. A home equipped with solar PV technology and a heat pump can potentially cut its energy bills by £1732 and increase the value of the property by £5,400. There's also 0% VAT to pay on solar panels until 2028, further reducing the upfront costs.
Heat pump running costs combined with a heat pump tariff
To maximise savings, homeowners can also choose a heat pump tariff designed exclusively for heat pumps, such as Aira Zero.
Powered by Octopus Energy, this heat pump tariff allows Aira to adjust your system to heat your home and hot water when the price of electricity is lower and use stored heat and hot water during peak times when it is more expensive. Reducing your energy costs by up to £500 a year without compromising comfort.
Air source heat pump installation costs and maintenance costs
While considering an air source heat pump, it's helpful to understand the installation and maintenance costs involved:
Installation costs: The investment for an air source heat pump system ranges from £4,500 to £10,000 (inclusive of government grants). The type of heat pump, property size, and existing heating infrastructure influence the cost.
Additional costs: If you're upgrading your home's heating system, you may need larger radiators or underfloor heating, potentially adding £1,000 to £15,000 to the initial installation costs.
Maintenance costs: Heat pumps are designed to last longer than boilers and therefore require less maintenance. Included in all our installs is the Aira Comfort Guarantee, which ensures that any parts and labour required to ensure the function of your product and installation are on us for 15 years.
Government support
Homeowners in England and Wales may be eligible for the Boiler Upgrade Scheme, which offsets up to £7,500 of the upfront costs.
In Scotland, the Home Energy Scotland Grant and Loan provides individuals up to £15,000 in funding. These grants make the switch to a heat pump more affordable and accessible.
What is the average payback period for an air source heat pump?
The payback period for an air source heat pump depends on various factors such as the initial installation cost, energy savings, and government incentives. On average, it typically ranges from 7 to 12 years. However, this can vary depending on your specific circumstances.
Are there any financing options available to help pay for the upfront cost of an air source heat pump?
Yes, there are financing options available to help manage the upfront cost of an air source heat pump. This includes heat pump grants and schemes offered by the government and energy providers.
Our all-inclusive switch experience also includes heat pump financing options, so you can spread the cost of your heat pump across affordable monthly payments.
Will the cost of an air source heat pump increase my home's value?
Installing an air source heat pump can potentially increase the value of your home by £8,000. Buyers are becoming more interested in energy-efficient and sustainable features when looking for properties. However, the extent of the increase in value can vary depending on the market and location.
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