As heating bills have continued to climb since the UK energy crisis, heat pumps are regularly suggested as a way to cut home energy bills.
With the energy price cap rising by another 2% in October, millions of households across the UK are looking for ways to save on energy.
However, with a high upfront cost, heat pumps represent a big investment for the average home. We’ve broken down the cost and potential savings to see if you could really save by installing a heat pump.
What is a heat pump?
A heat pump is an electrical device that heats a building ultra-efficiently. It works by transferring thermal energy (heat) from outside the building to the inside.
A heat pump is 4x more efficient than a traditional boiler at heating your home and hot water. This means there are a number of benefits to installing one, including:
- Lower energy bills
- A smaller carbon footprint
- If you are on a renewable energy tariff, they’re powered by green electricity
- Lower maintenance costs, with the average heat pump lasting twice as long as a traditional boiler
How much do heat pumps cost?
The UK’s most popular installer of heat pump systems is OCtopus Energy. The average price for installing a heat pump through Octopus is £4,460.
This cost includes the £7,500 boiler upgrade scheme grant available through the UK government. If you purchase a heat pump through Octopus, they will apply for this grant automatically on your behalf.
The actual cost of installing your heat pump will vary depending on the size of your home, as well as how energy efficient it is and how complex the installation process is. You can reach out to Octopus Energy directly to get a more accurate quote.
Top tip! Not an Octopus Energy customer yet? Book a free call with one of our Connections Experts to switch over for free in just a few minutes.
Does installing a heat pump save you money on your bills?
The short answer is – yes! Heat pumps are much more efficient than traditional boilers, and you should see your bills drop almost immediately after installation.
A typical usage household will save an estimated £368 per year using a heat pump. A high usage household will save an estimated £496 per year.
Using the average installation cost as a guide, this means a heat pump installation will pay for itself in 10-15 years, based on the size of your home. With a typical lifespan of around 20 years, a medium household could save £3000 or more over the lifespan of the appliance.
What are some alternatives to installing a heat pump?
Installing a heat pump is one of the biggest changes you can make to your home to reduce gas and electricity usage and save on your bills.
However, it’s not possible for everyone. This could be because you don’t own your home, you’re only expecting to live there for a short time or because of the high upfront cost.
Whatever the reason, there are plenty of alternatives to cut your energy bills. Your options range from the super simple – like switching devices off at the wall – to major upgrades like installing a new boiler.
Top tip! We have more than 102 energy-saving hacks for you to try at home here.
