Thinking of investing in an air source heat pump but unsure what costs are involved?
Read our guide and get information about air source heat pump costs and factors you may want to consider to help you make an informed decision.
What is an air source heat pump?
An air source heat pump is a heating system that extracts heat from the outside air and transfers it into your home via radiators or underfloor heating. By using the heat from the air combined with electricity generated from renewable sources, an air source heat pump is a renewable and potentially cost-effective heating solution that can reduce your reliance on fossil fuels and lower your carbon footprint.
How much does an air source heat pump cost?
The price of an air source heat pump can vary depending on several factors, such as how powerful the unit is, the brand, government grants and installation costs.
If you live in England and Wales
An air source heat pump can cost between £5,500 and £13,000. This air source heat pump price is inclusive of both installation costs and a government grant of £5,000, which is made available through the non-means-tested Boiler Upgrade Scheme.
If you live in Scotland
An air source heat pump can cost between £3,000 and £10,000, this is inclusive of both installation costs and a government grant of £ £7,500 which is made available through Home Energy Scotland. You can also apply for an interest-free loan of up to £7,500 to cover the remaining heat pump installation costs.
While heat pumps can be more expensive to install compared to other heating systems, they can be cost-effective due to their energy efficiency.
Running costs of an air source heat pump
An air source heat pump could cost around £1,992.60 to run per year based on a household using 18,000kWh of energy.
The price of energy varies and the amount of energy needed to heat a home can differ as well, making it challenging to give an exact figure for how much it may costs to run a heat pump. However, we've put together an example based on average fuel cost figures between April and June for a four-bedroom home using 18,000kWh of energy per year.
To estimate the total running costs, we divide the home heat requirement by the heat pumps presumed efficiency, then multiply it by the fuel price:
18,000kWh ÷ 300%) x 33.21p per kWh of electricity = £1,992.60
It's important to note that this is only an estimate and actual costs of running a heat pump may vary depending on various factors such as the size of the home, insulation quality, energy usage patterns and cost of electricity.
Compare savings with other heating systems
The amount of savings you can expect from your heat pump will vary based several factors: the design and operation of the heat pump itself, as well as the system you're replacing. The Energy Saving Trust provides a list of potential savings(1), which are outlined below.
- if you replace an old (G-rated) gas boiler with an air source heat pump you could save £385
- if you replace a new (A-rated) gas boiler with an air source heat pump you could save £8
- if you replace old electric storage heaters with an air source heat pump you could save £1100
- if you replace new electric storage heaters with an air source heat pump you could save £830
- if you replace an old (G-rated) LPG boiler with an air source heat pump you could save £460
- if you replace an old (G-rated) oil boiler with an air source heat pump you could save £455
- if you replace a new (A-rated) LPG boiler with an air source heat pump you could save £50
Typical air source heat pump costs based on home size
These costs below are only for homes in England and Wales and are inclusive of the £5,000 Boiler Upgrade Scheme. For homes in Scotland an air source heat pump could cost between £3,000 to £10,000 if you apply for an air source heat pump grant through Home Energy Scotland.
2 bed bungalow
£5,500 - £9,000
3 bed semi-detached or terraced home
£7,500 - £11,000
4 bed detached home
£9,500 - £13,000
Air source heat pump service costs
Air source heat pump service costs can vary and like any heating system, heat pumps require regular service checks to operate at their best and prolong their lifespan.
You may want to invest in a service plan, a regular service plan can provide peace of mind and save you money in the long run by identifying and addressing issues before they become more expensive to repair.
Having your air source heat pump professionally serviced regularly is crucial to keeping it at its best performance and maintaining your warranty coverage, which is 5 years if you're registered with Daikin. During this service, a qualified technician will perform an inspection of your system to ensure that your heat pump is functioning correctly and at optimal efficiency. The technician will also identify and address any potential issues that may cause the system to malfunction in the future.
In addition to professional servicing, there are several simple maintenance tasks you should undertake to ensure everything is working properly. This includes cleaning the filters, sweeping away debris from the fans, and ensuring that the area around the outside unit is clear of obstructions such as plants and bins.