The increasing cost, both social and monetary, of relying on gas or oil for heat and hot water is driving many families here in the UK to either stop heating their homes or switch to electricity-based sources of heat generation. Many others are seeking out lower carbon alternatives to gas or oil based heat and hot water generation.

I started researching heat pumps about a year ago for a house renovation project – at the time I knew absolutely nothing about heat pumps. I’ve gone from heat pump idiot to heat pump novice, so I’m doing my best to share my ever-so-limited learnings about the great heat pump revolution. The first and biggest question I had when looking at how to build a more sustainable home was how to keep it warm. Heat pumps offer an alternative to fossil fuel based heat and hot water generation as they run off electricity.

I have looked at ground source heat pumps (GSHP) and air source heat pumps (ASHP) as alternatives to gas and oil based boilers. The choice between the two can be tricky –  it depends on location, climate, land, size of the property – lots of stuff. This is where the experts come in. In our case, we have the land required to put in an effective GSHP, but we wanted to heat multiple buildings off the single system, and the heat loss that would occur by running a pipe between them could lead to inefficiency. So, we are also evaluating ASHP options.

It is worth noting here that expert advice or not, the decision to go with a GSHP or ASHP system is a complex one. On the one hand, GSHPs are slightly more efficient than ASHPs. On average, they will give you 4 units of heat output compared to every unit of energy input; whereas, air source heat pumps average 3 units of heat output for every single unit of energy input.

The main reason for this divergence is the variation in heating efficiency over the winter season. Ground temperatures do not fluctuate as much as air temperatures. So, as the air gets colder, an ASHP has to work harder to heat the air, reducing its efficiency somewhat. So, when efficiency is measured over the year, ASHP efficiency factors are slightly lower overall.

As well, the technology is evolving fast, and ground source heat pump systems no longer require a great deal of land, as drilling systems can enable vertical installations on very small plots of land, albeit at higher cost.

I have heard anecdotally that ground source heat pumps are less prone to installation issues, and are better able to sequester warmth for use later, making them more efficient. But, as said before, expert advice can be really beneficial in making these decisions, as they are often very dependent on the individual context.

Cost to Install

The cost of heat pumps (ground or air) is not insignificant. On average, the models we evaluated, including installation, cost between 3 to 5 times more than a gas boiler (including installation). In our situation, the cost of installing a boiler would be significantly higher than usual, because the barns we are renovating don’t have a connection to the gas mains. Under these circumstances, and taking into account a potential grant under the UK government’s boiler upgrade scheme, it became cost competitive to install two air source heating systems, rather than install new gas connections, and new gas boilers.

We calculated that the cost of setting up a new mains connection (including running a pipe from the existing mains access point), purchasing a gas boiler, and having it installed would have been within a margin of error of the cost of installing the air source heat pump – which was estimated to be in the neighborhood of £10,000 (slightly more for a 8.5kW ASHP for a 4 bedroom house, including hot water provision and slightly less for a 6kW ASHP for a 2 bedroom house, including hot water provision). This compares to a ground source heat pump installation that was estimated at closer to £20,000.

It is also worth considering that heat pumps work best with low flow temperature systems, such as underfloor heating. Many practitioners will tell you that they can work equally well with radiators and other systems, but the laypersons that I have interviewed who have installed systems have almost unanimously stated that they work better with underfloor heating.

We were already planning to install underfloor heating (UFH), and the cost to do so was helped by the fact that it was a full renovation of a derelict barn – meaning we don’t have to drill into existing concrete or pull up an existing floor – we are working from a blank canvas. If you are not already planning to install UFH alongside your heat pump, this is an additional cost you should consider.

Heat pumps are more efficient at lower temperatures, which makes them better suited to work with an UFH system designed to run at 35 degrees, for example, as compared to a radiator system designed to work at 45 degrees. For every degree cooler your flow temperature (the temperature, in Celsius, at which the water is circulating in the heating system) is, you will get a 2.5% increase in efficiency.

That means if you are using a heat pump with an UFH system designed to run at 35 degrees, that will be 25% more efficient than a boiler based system using radiators designed to work at 45 degrees water temperature. Because of this, the combination of radiators and underfloor heating could negatively impact the overall efficiency of your project if the system is not optimized.

For example, if you have underfloor heating designed to work at 35 degrees, and you have a radiator running on the system at 45 degrees, you run the risk that all the water is heated to 45 degrees for the system to function. That would reduce your efficiency. It is for this reason that a project needs to be considered in its entirety. There is a risk the system could be less efficient with a combination of radiators and UFH. However, well designed systems can have radiators and UFH with different manifolds running at different temperatures. It is just an item that needs to be considered in the design phase (and another reason to have help from specialists).

Cost to Run

Now, the thing is, heat pumps aren’t just more expensive to install – they were also traditionally more expensive to run, when relying on electricity and gas provision at historic prices. However, given recent changes in electricity and gas prices, this is no longer the case.

Heat pumps are more efficient than gas boilers – that statistic you will see all over adverts for heat pumps. However, electricity is more expensive than gas, so, even though the heat pump takes less energy to run, the cost of that energy (because it is electricity, not gas) was traditionally higher overall. However, soaring gas prices mean that now heat pumps are marginally less expensive to run than gas boilers.

A heat pump, under ideal conditions, according to sources noted at the end, can achieve 400% efficiency, compared to 90% efficiency of a traditional gas boiler (estimates range from 300% to 500% for ground source). 400% efficiency means that for every kW of energy input (in the case of a heat pump, electricity kW), the heat pump puts out 4 kW in useful heat. This is because they are transferring heat, not creating it.

However, electricity costs, historically, were 4 times more expensive than gas per kWh. So, that traditionally wiped out any benefit from the improved efficiency of the heating system. It is worth noting that the 400% efficiency is under peak conditions – conditions vary wildly by season, so you will likely see higher energy bills with an ASHP system in winter, when the pump has to work harder to transfer heat.

Let me give you an example, based on peak heat pump output:

Traditional Boiler – input of 1 kW of gas creates 0.9 kW of useful heat and costs 10.3p per kWh based on October 2022 prices which are currently at the government cap. Average prices over a longer period of time are more like 4p.

Heat Pump – input of 1kWh of electricity creates 4kW of heat and costs 34p per kWh based on October 2022 prices which are currently at the government cap. Average electricity prices in 2021 in the UK were 18p/kWh.

So, if my heat requirement is 10 kW of output, then that will cost me £1.14 in gas input with a traditional boiler, or 85p worth of electricity input with a heat pump under peak conditions. If you require 12,000 kWh of heat to keep your home and hot water warm a year, that would cost you £1,368 in gas with a boiler, or £1,020 in electricity inputs with heat pump, based on October 2022 prices.

Heat pumps require significantly less maintenance than traditional gas boilers, so you can reduce your annual running costs by the cost of an annual boiler service as well. As well, traditional boilers typically last between 10 and 15 years – heat pumps have a lifespan closer to 20 years, meaning that over a long period of time, the cost of replacement should be lower as well.

That being said, there is variation between ASHP and GSHP life spans. There is some risk that ASHP life spans can be reduced by their exposure to the elements (being exposed to weather, rather than underground). Some sources state that GSHPs last longer on average – closer to 20-25 years, and ASHPs are more likely to break down before hitting the 20 year mark.

It is also worth distinguishing between the heat pump in a ground system and the ground loop itself. Installation of the ground loop represents a large portion of the up front investment in a ground source system, and the loops themselves have a lifespan of 60+ years. It is just the pump that needs replacing after 20-25 years.

It is also worth noting that heat pumps and boilers work very differently. Setting a schedule for a boiler is a good way to save gas when you don’t need warming up, like overnight, when you are tucked up under a warm duvet. However, heat pumps work better when the target temperature stays constant because it is harder for the circulating hot water to reach extremely high temperatures. So, it is more effective to set the desired indoor air temperature to a constant, like 18 degrees, and leave it there, letting the heat pump work when it is needed to top up heat loss. This will help to minimize your cost to run.

Key Takeaways

Heat pumps are more expensive to install than gas boilers, even with help from the boiler upgrade scheme. But, with gas prices rising, they can offer cost savings on your annual energy bills of roughly 25%, or £350 based on average usage at today’s prices.

Given the quotation we received for installation, without help from the boiler upgrade scheme, it would take 27 years to pay back the up front investment based on today’s energy prices, or just over 14 years, with a grant from the government.

A critical piece of learning from my research and speaking to existing users of heat pumps is that switching to heat pumps is much more cost effective if you are supplementing your electricity consumption with your own renewable source. For more on that, visit this article on solar panel installations.

While gas prices have risen dramatically, prompting many to switch, it is worth considering that electricity prices have also gone through the roof.

At the moment, if you can afford the cost of equipment switching, heat pumps can provide you with modest savings on energy prices throughout the year. I should caveat this by stating, however, that that could change should prices fluctuate in the future.

And, finally, it is worth noting that a GSHP system can also provide passive cooling in summer. GSHP systems can extract heat from your home, and some offer seasonal storage so that heat is stored underground until it is needed. As temperatures rise on average, this feature may become increasingly important.

Useful Resources and Sources:

Energy Saving Trust

Evergreen Energy

Heat Pump Advantages

Pure Renewables

Ground Source Heat Pump Association (GSHPA)

Average House Power Consumption Netamo

Average Energy Consumption British Gas

Understanding kWh

Heat pump energy usage

Average house size by country

GeoEnergy Design Ltd


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