Should we be upgrading from oil and gas to heat pumps in our homes?

Many of us are keen to make our homes more energy efficient as the costs of fossils fuels and running our homes have soared. Climate change awareness has also become more prevalent as the world commits to net zero carbon emissions and limiting global warming to 1.5C above pre-industrial levels, spiking an interest in greener energy sources.

We may be lagging behind our European neighbours, with 98 percent of all electricity production coming from renewable sources in Norway, less than 1 percent of household waste going to landfill in Sweden and nearly 550,000 heat pumps purchased in France in 2021. However, interest in both solar panels and heat pumps has soared this year as people prepared for an expensive winter, and the ban on gas boilers in new homes from 2025. Indeed, over 26,000 heat pumps are expected to be purchased in the UK in 2022 alone according to the Microgeneration Certification Scheme (MCS) and the aim is for this number to rise to 600,000 in 2028. With this in mind, we consider the most frequently asked questions about heat pumps to help you decide if you should make the switch.

What are heat pumps?

Heat pumps are an efficient way to heat or cool your home or business by transferring heat from one source to another using electricity. In the winter, it will capture heat from the air or ground outside your property, increase the temperature and use it to warm your home. In the summer, it does the opposite, much like a refrigerator, meaning there is no need to install a separate air-conditioning unit.

Interestingly, the idea is not new, and heat pumps have been in use since the mid-19^th century. The most common type of heat pump is the air-source pump, although there is also a water or ground-source pump – which uses the warmer temperatures underground – and the hybrid or dual source pump which is a combination of renewable heating with a traditional system, typically a fossil fuel boiler. You can read m

ore about the different kind of heat pumps and how they work on the Energy Savings Trust website here.

In comparison to gas boilers, which convert one unit of energy into 0.9, heat pumps are much more efficient, converting one unit into three – five units. This efficiency means that the higher cost of electricity (around 34p/kWh versus 10p/kWh for gas) is offset. In 2023, there is likely to be a reversal in energy costs with gas becoming more expensive and electricity cheaper, which means heat pump savings will increase further. When it comes to choosing a heat pump, air source pumps are cheaper to install, although heat pumps which use heat from the ground are more efficient.

How much does it cost to install a heat pump?

The cost of installing a heat pump depends very much on the size and type of pump and property. The Energy Savings Trust puts the average cost of installing an air source pump at between £7,000 – £13,000 and £24,000 for a ground source pump, although it costs significantly more (around £49,000) if a bore hole needs to be created.

For the most efficient results, radiator temperature should be around 35° to 45° (versus 75° for a gas boiler) so you may need to upgrade some of the existing radiators within your home as well. Whilst installing most heat pumps would fall under permitted development rights, depending on where you live, the type of property you own and the type of pump you are installing, you may also need planning permission which can add to the cost. Whilst the initial outlay to install a heat pump can therefore be quite high, thankfully there are grants available to help with costs. This includes the government’s Boiler Upgrade Scheme for people living in England and Wales, which covers around £5,000 of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler. You can check if you are eligible for the grant here.

In Northern Ireland there is a similar grant for replacing your boiler and for people living in Scotland there is an interest free loan available for making energy efficient changes to your home. Mortgage lenders Barclays and Halifax also provide financial incentives for borrowers installing a heat pump and other energy efficiency measures too.

Can heat pumps be installed in older homes?

 Whilst there have been some suggestions that heat pumps may not be as effective in older homes, and that added insulation is needed, the consensus now appears to be that heat pumps can be effective in any home, as long as they are installed by a suitably qualified heating company. Definitely not a DIY job then! 

How long will a heat pump last?  

Heat pumps will normally last around 15 years on average with proper maintenance, although some of the more modern units last longer, as do dual-source pumps.

Will installing a heat pump add value to my property?

Much like solar panels, better insulation, and other energy saving improvements it can be hard to place an exact figure on the amount a heat pump will add to the value of your property. But as we all become more ecologically aware, and we have been hit by rising oil and gas prices, homebuyers are becoming savvier when it comes to seeking out energy efficient homes which will be kinder to their wallets and the environment. Indeed, according to Money Supermarket, upping your EPC rating can see you add between 6-14% to the value of your property.