Heat pumps ‘can slash £1,200 a year off bills’ – see it if it’s worth it

Grants are available towards the cost (Image: Nata Dietrich via Getty Images)

As energy bills continue to soar, with an average increase of £111 per year expected from April following Ofgem’s recent price cap announcement, households are seeking cost-effective and sustainable heating solutions. One option gaining attention is the heat pump, a low-carbon alternative to traditional gas boilers that experts claim could save homeowners up to £1,200 annually.

The UK government is supporting this shift by offering grants of up to £7,500 through the Boiler Upgrade Scheme to help cover initial installation costs. We spoke to Renewable Energy Consultants at to address common questions about heat pumps and their benefits.

A Grant Store spokesperson explained: “A heat pump is an electrically powered system that extracts and amplifies heat from the air, ground, or water to warm your home. It works by transferring heat through a refrigerant cycle.

“Heat pumps can be a minimum of three times more efficient than traditional heating systems, generating three units of heat for every unit of electricity used. This makes them an excellent long-term investment for both cost savings and reducing household carbon emissions.”

How much does a heat pump cost?

The cost of installing a heat pump can vary based on several factors, such as the size of the property, the type of heat pump and whether new radiators are needed. The Energy Saving Trust states that the average cost for an air source heat pump is around £14,000.

However, government grants can significantly reduce this initial expense. The Boiler Upgrade Scheme offers a £7,500 grant in England and Wales, while homeowners in Scotland may be eligible for interest-free loans and additional funding to improve energy efficiency.

A heat pump

A heat pump (Image: Alamy/PA)

A spokesperson from The Grant Store said: “While heat pumps require a higher upfront investment than gas boilers, financial incentives such as the Boiler Upgrade Scheme and lower running costs make them a cost-effective choice in the long run. Homeowners should explore all available funding options before making a decision.”

Will a heat pump reduce my energy bills?

Heat pumps are more efficient than gas or oil boilers, but energy bill savings depend on several factors, including electricity prices, radiator efficiency, and insulation levels. “For households switching from old electric storage heaters, a heat pump could save up to £1,200 a year,” explained the spokesperson.

“Those currently using outdated LPG boilers or coal heating could save around £650 annually.”

However, some homeowners might not see immediate savings, especially if switching from a new, A-rated gas boiler due to higher electricity costs.

“While gas is currently cheaper than electricity per unit, heat pumps are far more efficient,” stated an expert from the Grant Store. “Over time, as electricity prices fall and gas prices rise, the savings potential of heat pumps will improve significantly.”

Are heat pumps effective in cold weather?

A common question is whether heat pumps can operate efficiently in freezing temperatures. However, modern heat pumps are designed to function even in extremely cold climates.

The spokesperson confirmed: “Heat pumps work efficiently in temperatures as low as -30C, making them suitable for the UK climate. They consistently outperform gas and oil boilers in cold weather, providing reliable heating throughout winter.”

Can heat pumps be installed in older homes?

Some homeowners worry that heat pumps are only suitable for new-build properties, but advancements in high-temperature heat pumps mean they can now be installed in older homes with minimal disruption. “Heat pumps can be fitted in older buildings, provided some adjustments are made,” the Grant Store expert confirmed.

“While insulation improvements are recommended to maximise efficiency, they are not essential. The latest models of heat pumps are designed to work with existing radiators and heating systems, making them a viable option for most properties.”

Will a heat pump increase noise levels?

There are concerns that heat pumps generate too much noise, but modern units are quieter than traditional gas boilers.

“A properly installed and maintained heat pump should not create noise disturbance,” explained the spokesperson from Grant Store. “Regular servicing ensures it continues to operate efficiently and as quietly as possible.”

Should you switch to a heat pump?

The growing popularity of heat pumps among homeowners is supported by government initiatives, with lower running costs and significant environmental benefits, despite the need to evaluate the compatibility with existing heating systems, household energy demands, and individual budget constraints.

Wrapping up, the Grant Store representative emphasised: “If you’re considering a low-carbon heating system, heat pumps are one of the best options available today. With rising gas prices and an increasing focus on sustainability, investing in a heat pump now could future-proof your home and reduce your energy costs in the long term.”

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