Households are increasingly being asked to ‘go green’ with their energy use but this can involve a lot of upfront costs.
Heat pumps are becoming an increasingly popular low carbon form of heating but some households may be deterred by the upfront costs.
How does a heat pump save energy?
Using a heat pump saves energy as rather than generating heat, you are just moving it from the outside ambient air into your home.
So if you have an air source heat pump, you are transferring warm air from outside into your home. Even on the coldest winter days!
Research by the Centre for Alternative Technology suggests a heat pump uses one unit of electricity to deliver three or four units of heat. In contrast, a boiler uses a unit of electricity for each unit of heat and depending on its level of efficiency, some heat may be lost through the flue.
The Renewable Energy Hub suggests heat pumps produce around 850kg of CO2 per year, compared with 2,500 kg from gas boilers. The UK average car emits around 207 grams of CO2 per mile, according to analysis of figures from the Department for Transport. So the heat pump energy use is the equivalent of driving 4,100 miles annually in a car compared with 12,000 miles based on gas boiler emissions.
Using less energy means lower emissions. This means replacing a gas boiler with a heat pump may reduce your home’s carbon footprint.
How much does it cost to install a heat pump?
Installing a heat pump isn’t the same as getting a new or replacement boiler so on paper the upfront costs may raise eyebrows.
Government data suggests installation costs range from £11,457 to £16,029 before any grant funding is applied, for an air source heat pump. The amount you would need to pay would depend on the heating needs of your home.
In contrast a new or replacement boiler can cost around £3,500, according to the Energy Saving Trust.
That is a tricky comparison to make though as installing a heat pump means creating a bespoke whole heating system for your home, including upgrading your radiators. This should make your heating more efficient in the long-run whereas a new boiler may not be as effective if you have old radiators.
Luckily, you don’t have to stump up the whole cost of a heat pump.
Homeowners can apply for a £7,500 government grant towards a heat pump. This would cover more than half the cost in some cases and is known as the ‘BUS’ or ‘Boiler Upgrade Scheme’ grant.
You will be eligible if you own the property you are applying for and are replacing an existing fossil fuel heating system such as a boiler.
Applying for funding can be complex and time consuming though, if you try to navigate this route on your own.
E.ON Next can complete the grant application for you as part of their process, arrange a bespoke design and installation, ensuring you get a trustworthy and reliable installer.
Arranging an air heat pump installation through E.ON Next also means you get access to transparent upfront pricing and clear information.
This means there is more cost predictability and it is a transparent investment rather than relying on finding your own installer and being unsure of what you will need to pay.
Instead, E.ON Next can give customers access to heat pumps from trusted and established brands in the industry such as Vaillant and Worcester Bosch, which can save you the time and hassle of shopping around.
The supplier even helps reduce the financial barrier of installing a heat pump with flexible finance options offering 0% interest for up to two years.
A combination of the government grant and £200 off for existing E.ON Next energy supply customers can drop the starting cost of an air source heat pump for a typical three-bed property to around £4,342.32, according to E.ON Next.
Existing customers with the energy supplier get another benefit of using E.ON Next if you are an existing customer as you can get £200 off the total installation price.
This helps make sustainable heating both accessible and financially attractive.
How does a heat pump save you money?
This is where things get a bit tricky again.
Heat pumps use electricity to transfer the heat, which whilst a heat pump is more efficient than a gas boiler, electricity is more expensive per unit than gas.
So in theory, you will be using less energy to heat your home, however savings depend on the difference in cost between your gas and electric supply.
However, if you have solar or battery storage, this may help reduce your heating bills to zero as you are using more renewable sources to transfer energy. Essentially you can use your own generated power to heat your home. Or, purchase energy from the grid at low-cost periods and store it in your home battery, to heat your home when needed.
There are neat energy saving tricks if you are just using a heat pump.
Timing when and how long the heat pump runs for can help reduce energy costs.
Finding the most appropriate tariff for a heat pump can also be useful.
The Next Pumped tariff from E.ON Next charges less for electricity during specific periods.
It offers cheaper rates between 6am to 4pm and 7pm to 6am on a fixed 12-month tariff. This means your prices won't increase during your 12-month period.
This kind of tariff can make a heat pump more appealing and could create a noticeable difference to the annual running costs.
Other factors may have an impact though such as how well insulated your home is and your actual usage.
This could make a heat pump a sustainable investment for the environment and your pocket.
