How Much Does it Cost to Install an Air Source Heat Pump?

A detailed guide analysing the installation costs of an air source heat pump and associated cost savings.

Air source heat pumps (ASHPs) are an increasingly popular choice for heating and cooling homes due to their efficiency and environmental benefits.

However, potential adopters often wonder about the installation costs and the potential savings on energy bills. This article provides a detailed look at the typical costs associated with installing an ASHP and the savings you can expect on your energy bills each month.

Installation Costs of an Air Source Heat Pump

The cost of installing an air source heat pump can vary significantly based on several factors, including the size of your home, the type of system you choose, and the complexity of the installation. Here are the main cost components:

Purchase Price of the Heat Pump: The price of the heat pump itself can range from £4,000 to £11,000, depending on the model and capacity.

Installation Costs: Installation costs typically range from £3,000 to £7,000. This includes labour, materials, and any necessary upgrades to your existing heating system.

Additional Costs

These may be incurred if you need to install or upgrade your home’s insulation or if significant modifications are needed to integrate the heat pump with your existing heating system.

Additional Components

You may need to purchase additional components such as new radiators, underfloor heating systems, or a hot water cylinder, which can add £1,000 to £3,000 to the total cost.

Government Grants and Incentives

The UK government offers incentives such as the Renewable Heat Incentive (RHI), which can significantly reduce the upfront cost. Under the RHI, homeowners can receive quarterly payments for seven years based on the amount of renewable heat their system produces.

Typical Total Costs

Taking into account the factors mentioned above, the total cost for purchasing and installing an air source heat pump in a typical UK home can range from £8,000 to £18,000. However, with available government incentives, the net cost can be considerably lower.

Monthly Energy Bill Savings

One of the primary benefits of installing an ASHP is the potential for significant savings on your energy bills. Here’s how these savings can add up:

Efficiency Gains: ASHPs are highly efficient, with a coefficient of performance (COP) ranging from 3 to 4. This means they can produce 3 to 4 units of heat for every unit of electricity consumed, compared to a traditional electric heater, which has a COP of 1.

Reduction in Heating Costs: If you are currently using oil, LPG, or electric heating, switching to an ASHP can reduce your heating costs by up to 50%. For example, if your current heating bill is £150 per month, you could save between £75 and £100 per month with an ASHP.

Annual Savings: On an annual basis, these savings can be substantial. For a home with an annual heating bill of £1,800, switching to an ASHP could save between £900 and £1,200 per year.

Impact on Electricity Bills

While your electricity bill will increase due to the power consumption of the heat pump, the overall reduction in heating costs typically results in net savings. Modern ASHPs are designed to be energy-efficient, minimizing the impact on your electricity usage.

Example Savings Calculation

Let’s consider a typical scenario:

Current Heating Cost: £150 per month (using oil heating)

Expected Savings with ASHP: 50%

Monthly Savings: £150 * 0.50 = £75

Annual Savings: £75 * 12 = £900

In this example, the homeowner would save approximately £900 per year on energy bills by switching to an ASHP.

Additional Benefits

Environmental Impact: By switching to an ASHP, you reduce your carbon footprint as these systems use renewable energy from the air. This contributes to a reduction in greenhouse gas emissions.

Increased Property Value: Installing an ASHP can increase the value of your property. Energy-efficient homes are increasingly attractive to buyers, and having a modern heating system can be a significant selling point.

Comfort and Convenience: ASHPs provide consistent and comfortable heating and cooling throughout the year. They are also relatively low maintenance compared to traditional heating systems.

Conclusion

While the initial cost of installing an air source heat pump can be significant, the long-term savings on energy bills and the potential government incentives make it a worthwhile investment. By reducing your reliance on fossil fuels and taking advantage of the efficiency of ASHPs, you can achieve substantial cost savings and contribute to a more sustainable future. Carefully consider the installation costs and potential savings to determine if an ASHP is the right choice for your home.