Are heat pumps expensive to run?

One of the most frequently asked questions about air source heat pumps is whether they are expensive to run. With multiple types of heat pumps on the market such as air source and ground source, it can be challenging to know which one to go for and figure out how much they cost. 

We’re here to explain how much heat pump systems will cost you to install and run, as well as the savings you can get by making the move to renewable technology. 

Air source heat pumps are the optimal choice for domestic installations, with over 300 homes across the UK installing heat pumps with Green Building Renewables over the last year. As a result of implementing this technology, homeowners have reported that their energy consumption and costs within a year of installation are significantly down by 40%, with even more projected savings. 

So, let’s look at how much heat pumps are, from installation to running costs. 

How much does an air source heat pump cost to run?

The internet will give you many different facts and figures on the running cost of a heat pump. The exact costs can generally fluctuate given how volatile the energy industry is, especially Ofgem’s energy price cap. However, the current cost for electricity per kWh is 28.62 pence in line with the price cap between 1st January 2024 and the 31st March 2024. Running costs can also vary depending on the size of the system you have installed- so for now, let’s look at the costs of the average household heat pump system, which is 8.5 kW. 

Renewable energy expert and technical director here at Green Building Renewables, John Gilham, explains that “typically, the co-efficient performance of most heat pumps is 3:1. This means that using the 3:1 ratio, your heat pump will be 300% more efficient than a standard boiler, majorly reducing your running costs. Most fossil fuel systems are around 90% efficient. 

“Remember, your heat pump is powered by electricity. This means that for every kWh of electricity you put into the heat pump, you’ll get an average of 3 units of heat or hot water. The efficiency depends on several things such as the outside air temperature and the flow temperature of the heat pump system, but 3:1 is the standard.”

By installing a heat pump, you’ll have no more monthly heating bills as they are run purely on electricity. This means you may see a slight increase in your electricity bill, but your gas bill will be gone entirely. You can find out exactly how much a heat pump would cost you to run each month by contacting our experts for your free, personalised quote. You can also look into the savings other homeowners have generated by looking at this case study, where one couple has reported a total energy consumption reduction of over 40%. 

How much are heat pumps to install?

Heat pumps are currently more accessible than ever due to the government’s £7500 Boiler Upgrade Scheme (BUS), making the average cost to the homeowner for installation between £1500 to £3800 depending on the system you decide to go for (this is also for a simple install – no radiator upgrades). This is a one-off cost, as heat pumps remove your monthly heating bill. 

The scheme has been successful across the UK, so much so that there has been a 50% increase in applications for heat pumps over the last year. If your home qualifies for the scheme, the £7500 will be removed from your total bill and everything will be taken care of for you, including the application process.

In conclusion, heat pumps are 300% more energy efficient than a traditional gas boiler, whilst also having the added benefits of being renewable and environmentally friendly. 

If you’re interested in installing heat pumps at your property, get in touch with our expert team for a personalised quote to begin the process of installing heat pumps in your home. If solar power is something you’re also intrigued by, why not use our solar panel cost calculator to see how you can take your sustainable initiatives one step further?