What Are Air Source Heat Pump Costs in 2023?
- An air source heat pump can save you more than £6,000 over its duration
- On average, air source heat pump costs around £10,000
- A service will only need to be done every two or three years and costs around £175
- VAT has been scrapped from 5% to 0% on air source heat pumps
Air source heat pumps are not only incredibly efficient and a low carbon source of energy but purchasing one could cut your energy bills by around £141 a year.
Now, to help with air source heat pump costs, homeowners can also enjoy the VAT being scrapped on air source heat pumps from to 5% to 0% for the next five years. When it comes to buying, installing and usability, air source heat pumps are straightforward to understand.
The air source heat pump takes air from your home and converts it to heat your home and hot water. It can do the same job as a gas boiler but requires four times less energy and if it’s run with renewable electricity, then it really is an eco-friendly warrior.
With the gas boiler ban on the horizon for new homes, it’s definitely time to consider the best alternative on the market.
What Is The Cost Of An Air Source Heat Pump?
An air source heat pump costs around £10,000 which is a large amount at first but with any long-term investment, you will start to see yourself saving money each year. When you own an air source heat pump, you can expect to save £141 per year compared to gas boiler owners.
Air Source Heat Pump Installation Costs
The average air source heat pump costs around £10,000 to buy and install.
But in order to utilise the heat pump's full potential, you may have to install underfloor heating or make sure your home is properly insulated. The radiators may need to be twice as big as regular ones to enable the heat pumps abilities. The radiators may not all need to be replaced but most homes should anticipate replacing a third of them. This is due to the heat pump releasing heat over a longer period of time at a lower level than a gas boiler. This low operation means air source heat pump costs are economical to run.
A big part of why heat pumps are more energy efficient is actually due to their slow release. However, this means you either need a large surface area in your heating equipment, or reliable insulation that will retain the warmth that your heat pump generates. This makes air source heat pump costs for operation much lower.
Installing a heat pump is a complicated process that only a specialist should take on. They’re easy enough to find but you should hire an expert to install the heat pump along with any extra equipment required. They will also be able to discuss with you how to use it and work it efficiently.
You may even be eligible for one of the UK Government grants to cover some of the air source heat pump costs.
According to MCS, average air source heat pump costs last year were £12,120. You can see a breakdown of how the costs differed by month in the graph below.
Air Source Heat Pump Running Costs
On average, an air source heat pump costs around £520 per year to run, which is cheaper than gas.
A home uses 12,176kWh for heating per year, on average. A typical air source heat pump will produce three to four units of heat energy for every unit of electricity it uses. This is largely due to water holding onto more heat than air. There is a scale called its Coefficient of Performance and where the pump lands on this scale is around four, which equates to 400% efficiency.
If the heat pump is your only source of heating, this means that you’ll only need to use 3,044kWh of electricity to produce the 12,176kWh of heat needed to heat the average home over a year.
However, the price of electricity is currently 27p per kWh, while gas only costs 7p per kWh. That’s 3.8 times higher. So one reduces your costs by 400%, while the other increases your costs by 380%. Despite this, air source heat pump costs are cheaper to operate on an annual basis as they are much more efficient and don't use as much electricity.
Thanks to the Government's Boiler Upgrade Scheme, you can receive £7,500 off air source heat pump costs. See our article for the best heat pumps 2023 UK reviewed to help choose which model is best for your home.
Can I Save Money on Air Source Heat Pump Costs?
As well as the VAT scrap helping with the air source heat pump costs, there is a few schemes below that can help save you money.
Boiler Upgrade Scheme
Since 1st April 2022, the Renewable Heat Incentive has been replaced by the Boiler Upgrade Scheme. The scheme enables homeowners in England and Wales to get £7,500 off the cost of a new air or ground source heat pump. The government grant will reduce the number of people struggling to pay high air source heat pump costs to set up their heating system.
The average home will be able to save thousands of pounds over the duration of an air source heat pump's life. Unfortunately, the Boiler Upgrade Scheme has received a low level of financial backing from the government. With £450 million available, a maximum of 90,000 homes will be able to take advantage. That’s only 0.3% of the UK’s 27.8 million households. With the potential to reduce average air source heat pump costs to £2,500, it's a fantastic deal.
So if you want to take advantage, you better get in there before it’s gone.
Air Source Heat Pump Service Costs
If you carry out regular maintenance checks, a heat pump should sufficiently provide your home with warmth and hot water for at least 20 years. This would certainly even the air source heat pump costs over time.
It’s advised to have your machine serviced by a professional every two or three years, to ensure everything is running smoothly. It will cost around £175 to service. Check with your installer if you can get a cheaper regular service included in your purchase agreement. Before installing the heat pump, ask your installer to write down any maintenance checks that should be carried out regularly. This will be minimal tasks such as sweeping any leaves, or removing dust or snow from the heat pump’s fans and doing a routine clean of the filter.
Air source heat pump costs for operation can be kept to a minimum if you keep up regular maintenance. Keeping your heat pump functioning efficiently will save you money in the long run and is free to maintain. Other than carrying out routine maintenance checks, another way you can protect your heat pump system is by getting cover for the outside unit, which will guard the heat pump against extreme weather conditions.
By purchasing an air source heat pump, you’re investing in a cheaper, greener future. They will not only cut your energy bills by an average of £141 per year, but reduce your carbon footprint by at least 2.5 tonnes of CO2 per year. That’s 38% of the average Brit emissions. Not to mention that new gas boilers are set to be banned from 2035, so air source heat pumps are only going to become more popular as the years go by. With the Boiler Upgrade Scheme increasing the grant for air source heat pump costs from £5,000 to £7,500, there's never been a better time to switch.
So now you know about air source heat pump costs, if you'd like to hear from one of our professional installers, just enter a few details and we'll take care of the rest.