Air Source Heat Pump Costs
Are you considering installing an air source heat pump but unsure about the costs? Currently, you can apply for grants of up to £7,500, and even up to £9,000 in some rural areas of Scotland.
1. How much does an air source heat pump cost?
After government subsidies, the price of an air source heat pump can range from £3,999 to over £10,000, depending on several factors, such as:
1) How well does the unit perform?
2) Brand
3) Government grants
4) Installation costs
(The £3,999 price assumes the use of an existing suitable hot water tank. A new tank will cost extra.)
2. Are there any financial aid options for installing a heat pump?
The good news is that grants and loans are currently available to help you pay for the installation of a heat pump. We have listed details of existing grants and loans across the UK. In addition, you can choose a heat pump financing option that suits your needs.
1) If you live in England or Wales
You can take advantage of the Boiler Upgrade Scheme to receive a grant of up to £7,500 for installing an air source heat pump. This scheme covers heat pump installations before the end of March 2028.
2) If you live in Scotland:
Home Energy Scotland offers a grant of up to £7,500 for air source heat pumps. Residents living in remote areas and eligible for the rural grant can receive up to £9,000. You can also apply for an interest-free loan of up to £7,500 to cover the remaining costs.
3. Can installing a heat pump save on energy bills?
According to the Energy Conservation Trust, for a medium-sized three-bedroom semi-detached house, replacing old, inefficient heating systems with a standard air source heat pump, along with any recommended radiator upgrades, can result in significant annual savings. For example, replacing an old (Class G) gas boiler with an air source heat pump can currently save up to £260.
4. Air Source Heat Pump Service Costs
Repair costs for air source heat pumps can vary. Like any heating system, heat pumps require regular maintenance and checks to ensure efficient operation and extend their lifespan. Purchasing a maintenance plan provides peace of mind and avoids costly repairs by identifying problems early.
During a service, a qualified technician will:
1) Inspect the system's performance and efficiency
2) Identify potential problems before they lead to failure.
In addition to professional repair services, some simple maintenance should be performed between service visits to ensure system performance:
1) Clean the filters regularly
2) Remove debris from the fans
3) Keep the area around the outdoor unit clear.
5. Air Source Heat Pump Operating Costs
If a household uses 11,500 kWh of energy per year, the annual operating cost of an air source heat pump is approximately £992.
Energy prices fluctuate, and the amount of energy required for home heating varies, making it difficult to accurately calculate the cost of operating a heat pump. However, we've compiled an example for a three-bedroom home with an annual electricity consumption of 11,500 kWh, based on average fuel cost data from October.
We divide the home's heating needs by the assumed efficiency of the heat pump, then multiply by the fuel price:
(11,500 kWh ÷ 300%) × Electricity Price per kWh 25.9 pence = £992
You can reduce your heat pump costs by joining our heat pump electricity pricing scheme, where all heat pumps are powered by zero-carbon electricity generated in our own production.
6. Is an air source heat pump right for my home?
Most homes are suitable for heat pump installation, but some upgrades may be necessary to improve efficiency, such as adding insulation or replacing radiators. You will also need:
1) Become a homeowner
2) Have sufficient outdoor space (approximately 2m x 1m)
3) Reserve space for a water tank (to install the most efficient heat pump)
4) Ensure proper insulation (e.g., wall cavities and attic insulation)
7. Frequently Asked Questions about Air Source Heat Pumps
1) Are air source heat pumps economical?
Air source heat pumps are generally an economical and efficient way to heat a home. While modern Class A gas boilers are approximately 88% to 94% efficient, older models in Class D to G may be as low as 70%. In contrast, air source heat pumps can be up to 300% efficient, meaning that for every unit of electricity consumed, three units of heat are generated.
For example, a typical three-bedroom home may require approximately 11,500 kWh of heating per year. Due to the efficiency of air source heat pumps, their average operating cost is approximately £992 per year (5). In comparison, using a gas boiler with an efficiency of 70% to heat the same house would cost approximately £1,035 per year (5).
2) Are there any hidden costs associated with installing an air source heat pump?
While the main costs are usually paid upfront, such as the equipment itself and installation fees, there are some additional expenses to consider. For example, to allow the heat pump to perform at its best, your home may need some upgrades, such as adding insulation or replacing the radiators. If you don't already have a hot water tank in your home, you may also need to install one. These costs largely depend on the current condition of your home, and a qualified installer will provide you with a clear assessment and guidance throughout the process.
3) Will installing an air source heat pump increase the value of my house?
Absolutely! Installing an air source heat pump not only helps reduce carbon emissions but also increases the value of your home in today's environmentally conscious market.
4) Will the weather affect the efficiency and operating costs of an air source heat pump?
Modern systems are designed to operate well in cold climates and can typically withstand temperatures as low as -25°C or lower. However, as temperatures drop, the water pump needs to work harder to absorb heat from the air, which may slightly increase energy consumption.
