As the UK transitions toward low-carbon heating, many homeowners are weighing the pros and cons of switching from traditional gas boilers to air source heat pumps (ASHPs). One of the most common questions is: how do the running costs compare? In this post, we’ll break down the key differences using insights from Ofgem and the Energy Saving Trust.
Understanding the Basics
Gas boilers have long been the standard in UK homes, offering reliable and relatively low-cost heating. However, they rely on fossil fuels and contribute significantly to carbon emissions. ASHPs, on the other hand, extract heat from the outside air -even in cold weather – and use electricity to transfer that heat into your home. While they’re more energy-efficient, their running costs depend heavily on electricity prices.
Comparing Running Costs
According to Ofgem, the current higher cost of electricity compared to gas means that in some homes, ASHPs may initially have higher running costs than gas boilers. However, this is changing. The UK government is actively working to rebalance energy prices, aiming to make heat pumps no more expensive to run than gas boilers, and eventually cheaper.
The Energy Saving Trust notes that ASHPs are highly efficient, often achieving a Coefficient of Performance (COP) of 3 or more. This means for every unit of electricity used, they can generate three units of heat. In contrast, even the most efficient gas boilers have a COP of less than 1.
The equation changes when you combine ASHPs with solar panels. By generating your own electricity, you can dramatically reduce the running costs of your heat pump. The Energy Saving Trust’s solar calculator shows that households can save hundreds of pounds annually on electricity bills, depending on system size, location, and usage patterns. Additionally, surplus electricity can be sold back to the grid through the Smart Export Guarantee (SEG), further offsetting costs.
This synergy between ASHPs and solar panels not only lowers your energy bills but also enhances your home’s sustainability. It’s a compelling option for those looking to future-proof their heating system while reducing reliance on fossil fuels.
Factors That Influence Costs
Several factors affect the running costs of an ASHP:
- Home insulation: Well-insulated homes retain heat better, reducing the workload on the heat pump.
- Radiator upgrades: Some homes may need larger radiators or underfloor heating to maximise efficiency.
- Electricity tariffs: Choosing a heat pump-friendly tariff can significantly reduce costs.
- Solar panels: Generating your own electricity with solar panels can greatly reduce the cost of running an ASHP, especially during daylight hours. This combination can also allow you to benefit from the Smart Export Guarantee (SEG) by selling excess electricity back to the grid.
Government Support and Incentives
To support the transition to low-carbon heating, the UK government offers the Boiler Upgrade Scheme (BUS), which provides £7,500 grants toward the installation of air source heat pumps in England and Wales. This significantly reduces the upfront cost and makes heat pumps more accessible to homeowners.
In addition to government support, Improveasy is currently offering a £500 manufacturer discount on all air source heat pump installations. This further reduces the cost barrier and makes switching from a gas boiler to a heat pump even more financially attractive. To make the transition even easier, we also offer flexible finance options, allowing you to spread the cost in a way that suits your budget.
Combined, these incentives can bring the total cost of installation much closer to that of a traditional boiler, while offering long-term savings and environmental benefits.
The Bottom Line
While ASHPs may currently have slightly higher running costs in some scenarios, their efficiency, environmental benefits, and future cost trajectory make them a smart long-term investment. As electricity becomes greener and cheaper, the balance is expected to tip further in favour of heat pumps.
Ready to Make the Switch?
Switching to an air source heat pump is not just a smart financial move – it’s a step toward a greener, more energy-efficient future. With generous government grants, our exclusive £500 manufacturer discount, and expert installation from Improveasy, there’s never been a better time to upgrade your heating system.
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