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Air Source Heat Pumps Cost and Benefits

Solar panels

Air Source heat pumps have been available now for several years and have gained a significant foothold in popularity in Europe, Japan and North America as the technology has developed and become more effective. Despite a number of Heat Pump misconceptions held within the UK, the technology is now quickly gaining ground on more established energy efficient heating systems.

Air source heat pumps provide the best savings when compared to heating systems which use electricity, oil, coal or transported gas, with average savings of over 40%.

When compared to a properly installed, well maintained high efficiency mains gas based heating system, the energy use and subsequent fuels costs of both systems are relatively similar at current market prices over a year. However, Air Source Heat pumps offer some distinct advantages over gas:

  • Heat Pumps are extremely reliable with no regular maintenance required. Heat Pumps have an expected life span of 25 years with no loss of efficiency, compared to boilers which can lose up to 2% efficiency for each year of operation and have a usable life span of only around 12 years.
  • Could provide you with an income through the government’s Renewable Heat Incentive (RHI)
  • Gas prices are more susceptible to seasonal price increases than electricity and we expect future gas prices to significantly increase over electricity as supplies run short and are less able find a renewable alternative source such as, solar, wind, hydro, wave and nuclear fusion for electricity.
  • Possible to achieve zero carbon emissions for a property if an Air Source heat pump is connected to a suitably sized solar photovoltaic system.
  • No risk of gas explosions or carbon monoxide poisoning.
Self-finance calculation

Renewable Heat Premium Payment (RHPP)

The second phase of a two phase approach to support installation renewable heating technologies. The Renewable Heat Premium Payment scheme has now been extended for further applications. Providing around £12m of available payments to households in Scotland, England and Wales who install appropriate-sized systems after 21st July 2011. An Air to Water Heat pump system can attract a voucher value of £1,300 and does not effect on your eligibility for the Renewable Heating Initiative, although it is expected that the value of the RHPP contribution will be incrementally deducted from future RHI payments.

Self-finance calculation

Renewable Heat Incentive (RHI)

The RHI is now available for the Commercial Installations. To date, the Government is yet to have published the full details of how the Renewable Heat Incentive will work in the domestic sector but it is due to be launched in the spring of 2014. Payments will be made on a quarterly basis for seven years. The tariffs for heat pumps have been set at 7.3p per kWh, this reflects the expected cost of renewable heat generation over 20 years. In most cases, payments will be made based on estimated heat demand of the property. DECC will offer an extra set payment of £230 per year where consumers take out metering and monitoring support packages. Applicants will need to complete a Green Deal Assessment before submitting their application and must ensure they have met minimum loft (250mm) and cavity wall insulation requirements, where possible.

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