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Heat Pumps: FUNCTIONALITY & COST ANALYSIS

INDUSTRY INSIGHTS, UK-FOCUSED

Heat pumps are eco-friendly systems that use electricity to heat and cool homes by harnessing energy from the air, ground, or water. They play a key role in cutting the UK’s home heating emissions, which make up 14% of the country’s total carbon dioxide output. Read more to discover its functionality and cost implications

TYPE OF HEAT PUMPS

Air-Source Heat Pumps:

  • Most common type and most popular
  • Draw outdoor air and pass it over refrigerant-filled tubes to generate heat
  • The outdoor unit is compact, measuring about 1m x 1m x 0.4m
  • Must be connected to an indoor system such as radiators, radiant or fan coil units
  • Draw energy source from electricity

Ground-Source Heat Pumps:

  • More efficient but typically more expensive
  • Require extensive ground installation, either through deep boreholes or horizontal systems
  • Must be connected to an indoor system such as radiators, radiant or fan coil units
  • Draws energy source from the ground

Cost Implications

The Boiler Upgrade Scheme provides a £7,500 grant to help homeowners in England and Wales switch to heat pumps. With this grant, some energy companies offer heat pumps at prices as low as £500. Eligibility for UK grants:

  • The grant applies to existing homes and non-domestic buildings with an eligible Energy Performance Certificate (EPC) issued within the last decade.
  • Recent rule changes mean homes no longer need existing loft or cavity wall insulation, potentially saving about £2,500 upfront. However, good insulation can enhance the heat pump’s efficiency.
  • The grant is not available for social housing or new builds. Tenants in private rentals can apply, but the landlord must initiate the process.

Although heat pumps require a significant upfront cost, their running expenses could be lower than those of gas boilers over time. The potential savings are influenced by energy prices and the heat pump’s efficiency.

HEAT PUMPS: UK vs EUROPE

Even with the rise in installations—nearly 100,000 heat pumps sold in 2024 compared to 60,000 in 2023—the UK still trails behind countries like France and Germany. To hit climate targets, annual installations need to ramp up to around 450,000 by 2030 and 1.5 million by 2035. Achieving this will also require many more trained heat pump installers.

TIME TO CHANGE?

There is currently no legislative requirement for households to replace their gas boilers prior to the end of their operational lifespan. Homeowners retain the option to install new gas boilers if they so choose. However, the Climate Change Committee (CCC) has outlined a vision for the future, advocating that by 2035, all newly installed heating systems should be low-carbon, with heat pumps serving as the primary solution.

While heat pumps are championed as the preferred technology, the CCC recognises that alternative systems, such as direct electric heating, may offer greater suitability for certain properties. Notably, the CCC has recommended excluding hydrogen as a viable option for domestic heating, arguing that this measure is essential to provide clear guidance to both consumers and the energy sector.

For those interested in exploring R32 options, check out our range of eco-friendly air conditioners that incorporate advanced heating and cooling technology and comply with the latest environmental standards.