Heat pump prices: what’s the cost of an air source heat pump?
03 October 2023 | OVO Energy
When it comes to eco-friendly home heating, heat pumps are the future. They’re efficient, renewable, safe, and they’re a key part of our path to a net zero world. And the UK government recently announced an increase to the Boiler Upgrade Scheme: eligible households will be able to get a £7,500 grant for their heat pump install. Check if you’re eligible for the grant.
So: how much does a heat pump cost here in the UK? Can it save you money on your energy bills? And how can you get your hands on an air source heat pump grant? Here’s everything you need to know.
How much does an air source heat pump cost?
Installing a heat pump in your home is a bit more complicated than fitting a new boiler. For one thing, there are far fewer trained heat pump installers available in the UK than boiler engineers. This means you’re paying for more specialist skills.
Heat pump costs depend on lots of different factors. Just like with any other heating system, if you’ve got a bigger 3 to 4 bedroom house, for example, you can expect to pay more. If you choose a lower quality system or fewer fancy controls and add-ons, you could pay a bit less.
So how much will a new heat pump cost in total, once you factor in installation, parts, and everything else? The Energy Saving Trust estimates that getting an air source heat pump, including installation, comes to around around £14,000 (without the Boiler Upgrade Scheme).
Now for some good news: as heat pumps become more common, more and more engineers will be trained in how to install them, making it less expensive. As the market grows, prices should fall. So, if you’re put off by costs right now, just watch this space.
Air source heat pump running costs
How much does an air source heat pump cost to run, and can it save you money? The answer depends on:
- How big your home is
- How well-insulated your home is
- What type of heating system you’re replacing
- How warm you’d like it to be
- Your electricity tariff
- The temperature outside
In general, air source heat pumps are very efficient. They have what’s called a Coefficient of Performance, or CoP, of between 2.5 to 3.5. So, if a heat pump has a CoP of 3.0, then it will give out three units of heat for every unit of electricity consumed.
Switching to a type of use tariff can help you save money when running your air source heat pump. We’re currently trialling a type of use tariff with some of our customers. They’re unlocking a cheaper unit rate of 15p per kWh when powering their heat pump, which unlocks savings of up to £500 a year compared to a gas boiler¹. Interested? Register your interest and we’ll let you know when we’re installing in your area.
Can I get a grant for installing a heat pump?
The Boiler Upgrade Scheme
In April 2022 the Renewable Heat Incentive was replaced by the Boiler Upgrade Scheme.
Rather than quarterly payments, the Boiler Upgrade Scheme gives homeowners a one-off grant towards the cost of installing a heat pump. This grant has recently increased from £5,000 to £7,500, this goes towards the cost of an air source heat pump.
Are heat pumps worth the cost?
So, are air source heat pumps worth the money? We think so. Here are a few reasons why we believe heat pumps are so worthwhile.
Benefits of air source and ground source heat pumps
- You can claim the Boiler Upgrade Scheme if you’re eligible, to help with the cost of getting a heat pump installed
- Air source and ground source heat pumps are safe, with no flammable fuel and no risk of carbon monoxide leaks.
- They have a long lifespan, potentially lasting over 20 years.
- Heat pumps could lower your energy bills if you’re replacing an old, inefficient system, or conventional electric heating and using a type of use add on or tariff.
- You’ll be helping to fight the climate crisis by decarbonising heat, moving away from our dependence on fossil fuels. This is a really important part of the UK’s journey to net zero – and what could be a better benefit than that?
Want to be a heat pump pioneer?
We're bringing you something exciting. We’re inviting customers to test out a special heat pump offer. To find out more, register your interest and we’ll let you know when we're installing in your area.
And if you have any more queries about air source heat pumps, why not head to the OVO Forum? The Forum is where our community comes together to share their firsthand experiences of living with tech. There are tonnes of discussions about every aspect of heat pumps, so why not get involved and join the conversation?
Sources and references:
¹ Savings of £500 are based on the following comparison: a gas boiler running at 83% efficiency (as per the national average) with an annual consumption of 10,500 kWh at 8.5p/kWh versus an air source heat pump with a Seasonal Coefficient of Performance (or efficiency rating) of 4 and an annual consumption of 2,625 kWh at 15p/kWh with the Heat Pump Plus add-on.