The hidden costs with heat pumps

As the UK pushes toward net zero, heat pumps are the greener alternative to traditional gas boilers. According to the Energy Saving Trust, they have the potential to slash your home's carbon emissions by up to 70%.

However, while many homeowners are being encouraged to make the switch, concerns about their costs are holding people back. The initial installation price—typically between £8,000 and £16,000 - is substantially more than you would pay to install a conventional gas boiler, which ranges between £1,600 and £5,300.

And there are some additional financial considerations to take into account, too.

"When it comes to air source heat pumps, one of the main additional costs homeowners may face is a service and maintenance programme," explains Rob Jennison, Service & Maintenance Manager at Geo Green Power.

"While this does involve some expenditure, it is highly recommended as it helps protect against potential performance issues and costly inefficiencies down the line. It will also help to keep it within warranty."

For the budget-conscious homeowner, basic self-maintenance can reduce costs. This includes:

• Checking the fan for debris and leaves
• Monitoring the pressure gauge (ideally around 1.5 bar)
• Inspecting insulation around pipework
• Ensuring the condensate outlet remains clear of debris

Choosing the right power provider

Unlike gas boilers, heat pumps run on electricity. This shift in energy source means your choice of electricity provider becomes crucial for managing running costs.

"Securing a favourable tariff with a reputable company can help minimise costs and prevent unnecessary expenditure," advises Jennison. Some companies now offer specialised heat pump tariffs and separate metering options that can result in significant savings.

Home upgrades

Before installation, it's essential to assess whether your home is heat pump-ready. The Government's website offers a very useful compatibility check, but you will still need a full, professional assessment.

For optimal performance, your home should have:

• Adequate space for the heat pump unit and hot water cylinder
• Good insulation, ideally including floors and walls, roofs and double glazing throughout
• Suitable heating distribution systems (ideally underfloor heating or appropriately sized radiators)

Many properties require upgrades to meet these requirements, especially those built before 1900, which can add substantially to the overall installation cost. However, various funding schemes are available to help offset these expenses.

Choosing a reputable installer

Perhaps the most critical factor in avoiding hidden costs is selecting the right installation company.

Jennison says: "A significant portion of our inquiries relate to fixing units installed by other companies that were installed incorrectly."

A professional installer will conduct a thorough pre-installation survey to identify potential issues before work begins, helping to prevent unexpected costs later.

Running costs

The running cost of a heat pump in the UK typically ranges between £800 to £2,500 per year, depending on factors such as home size, insulation, and the efficiency of the heat pump. An average air source heat pump costs around £1,360 per year to run, compared to a gas boiler which might cost around £1,250 per year.

Grants are available

Despite the potential for additional expenses, financial assistance is available. The Boiler Upgrade Scheme, running until 2028, offers grants of £7,500 toward installation costs for eligible properties.

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