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Benefits

Costs, savings and earnings

Costs

Installing a typical air source heat pump system can cost between £6,000 to £10,000. Running costs will vary depending on a number of factors - including the size of your home, and how well insulated it is, and what room temperatures you are aiming to achieve.

Savings

How much you can save will depend on what system you use now, as well as what you are replacing it with. Your savings will be affected by:

  • Your heat distribution system
    if you have the opportunity, Underfloor heating can be more efficient than radiators because the water temperature is lower than radiators (35˚C).
  • Your fuel costs
    You will still have to pay fuel bills with a heat pump because it is powered by electricity, but you will save on the fuel you are replacing. If the fuel you are replacing is expensive you are more likely to make a saving.
  • Your old heating system
    if your old heating system was inefficient, you are more likely to see lower running costs with a new heat pump.
  • Water heating
    if the heat pump is providing hot water then this could limit the overall efficiency slightly. You might want to consider solar water heating to provide hot water in the summer and help keep your heat pump efficiency up.
  • Using the controls
    Learn how to control the system so you can get the most out of it. You will probably need to set the heating to come on for longer hours, but you might be able to set the thermostat lower and still feel comfortable. We will explain to you how to control the system so you can use it most effectively.

These are the savings you might make every year when replacing an existing heating system in an average three-bedroom home with a typical ASHP installation:

Existing system End Terrace Semi-detached Detached
Gas £/year 
kgCO2/year
£260
660
£300
800
£420
1,200
Electric £/year 
kgCO2/year
£640
4,300
£730
5,000
£1,000
6,900
Oil £/year 
kgCO2/year
£500
1,100
£570
1,300
£760
1,800
LPG £/year 
kgCO2/year
£570
970
£660
1,200
£870
1,700
Solid £/year 
kgCO2/year
£210
4,200
£250
4,800
£350
6,400

Earnings

You may be able to receive payments for the heat you generate using a heat pump through the government’s Renewable Heat Incentive (RHI). This scheme should be launched in Summer 2013.

For systems installed after 1 August 2011, you may be able to get help with the installation costs of a new air source heat pump through the Renewable Heat Premium Payment scheme.

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