A New First: Air Source Heat Pumps Could Now Be Cheaper Than Gas Boilers Over a Lifetime
Air source pumps have never looked so appealing as they now cost around the same price as a gas boiler for the first time ever in the UK.
Depending on the size and make of the model, prices of an air source heat pump could vary but after installation, the average cost is around £10,000. However, now with the new Boiler Upgrade Scheme, homeowners can save £5,000 off the cost of an air source heat pump, plus in addition to this the government has scrapped the VAT to 0% making them a lot more accessible to households.
With the record breaking 54% increase in the energy price cap, gas bills have risen to nearly £2,000 a year, which now means the overall running costs of an air source heat pump can now be cheaper than a gas boiler.
It’s also likely that the price cap is due to rise again by another 42% in October which would equate to a record increase of £830 and take the average annual bill above a devastating £2,800.
If an air source heat pump were to last the maximum of its estimated lifetime of 20 to 25 years, it would be £412 cheaper than a gas boiler which lasts up to 10 to 15 years.
Heat Pumps vs Gas Boilers
Please note that these prices are an estimate and that costs will vary depending on the size, make and model.
AIR-SOURCE HEAT PUMP
Installation Cost: £4,975 (Includes £5,000 Grant + no VAT)
Yearly Running Cost: £723 - £964
Average Lifetime: 20 to 25 years
Installation Cost Per Year: £249 (20 yrs) to £199 (25 yrs)
Total Cost (10+ years): £12,128 (£2,488 installation + £9,640 running)
GAS BOILER
Installation Cost: £2,700
Yearly Running Cost: £984
Average Lifetime: 10 to 15 years
Installation Cost Per Year: £180 (15 yrs) to £270 (10 yrs)
Total Cost (10+ years): £12,540 (£2,700 installation + £9,840 running)
Result: Over 10 years, heat pumps average at £412 cheaper.
Summary
With the Government planning to ban gas boilers in newly built homes in 2025, plus the record breaking energy price cap increase, air source heat pumps are ready to step in and start saving you money.
Now with the Boiler Upgrade Scheme being able to reduce £5000 off the initial cost plus the VAT cut, the running costs of an air source heat pump have become much more appealing than before.
A heat pump with a Seasonal Coefficient of Performance (SCoP) which is the average Coefficient of Performance (CoP) over a full heating season. If the SCoP rating is 3.0 or above then an air source heat pump can now absolutely match the price of gas boilers.
If you’d like to know more about how much an air source pump could save you money, you can visit our extensive range of guides.