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April 2022 sees the introduction of government grants designed to help householders to install heat pumps as replacements for gas boilers. This technology is likely to become an increasingly popular eco-friendly alternative to using fossil fuels to heat your home.
As well as doing your bit for the environment, installing a heat pump could also help to reduce your energy bills.
However, there are many factors to consider before taking the plunge, so here’s what you need to know – along with information about those government grants.
A heat pump is an electrically powered device that enables the transfer of heat from one place to another. It works in a similar way to a fridge, but in reverse. The heat pump extracts heat from the outside air, the ground or a water source and transfers it into your home.
However, while heat pumps have many benefits, they also deliver at lower temperatures compared to a gas or oil boiler. This means you’ll need to run them for longer to heat your home to a comfortable temperature.
The two main types of heat pumps are air source and ground source. But if you live near a large body of water such as a lake or river, you can also opt for a water source heat pump.
The most common type of heat pump, air source heat pumps transfer heat between the outside air and your home. Outside air is blown over a network of tubes filled with a refrigerant. The refrigerant warms up and turns from a liquid into a gas.
The gas is then compressed, increasing its temperature, and it passes into a heat exchanger surrounded by water or cool air. As the water or cool air heats up, it circulates around your home to provide heating and hot water. It can also be stored in a hot water cylinder.
Energy stored in the ground can be used to run ground source heat pumps. Installation can be more disruptive, however, as heat pipes will need to be laid into the ground near your home. This loop of pipe will usually be either a long, coiled pipe buried in a trench, or a long loop placed in a narrow borehole potentially dozens of feet deep.
A mixture of water and antifreeze then flows around the pipe, and heat from the ground is absorbed into it. The fluid then passes through a heat exchanger into the heat pump. The temperature of the fluid rises and transfers that heat to water. This can be used to heat your radiators, for underfloor heating or to be stored in a hot water cylinder.
If you live near a large body of water, you might be able to use a water source heat pump. These extract energy from a lake, river or a large pond, for example. Similar to ground source heat pumps, they use a series of pipes submerged in the water that contain a special liquid to absorb the heat from the water. This is then used to warm up your home or provide hot water.
Depending on the size and model of the heat pump and the size of your home, the Energy Saving Trust estimates that an air source heat pump costs between £7,000 and £13,000 to install. Typical costs for a ground source heat pump are much higher, between £20,000 and £30,0000.
It’s recommended that you get at least three installers to provide a quote to help you find the most competitive deal.
Running costs will depend on how your heat pump is designed and how it is operated.
This will depend on the type of property you live in. Installing heat pumps is generally easier if you live in a new-build property, but it’s still possible to fit them in older buildings if planning regulations allow.
Whatever the age of your property, it’s important to ensure it is well insulated to prevent as much heat escaping as possible. If your home is poorly insulated, you’ll need a larger pump which will be more costly.
If you have an air source heat pump fitted, you’ll need to have a box of around one metre by one metre just outside your property, or even attached to it. It will need to be in an area that is easily accessible so that it can be cleaned and serviced.
For this reason, it can be harder to get a heat pump installed if you live in an apartment or flat. But you may be able to have one fitted on a balcony or outside wall if it’s permitted. Your best bet is to talk through your options with a qualified installer.
If you are a tenant, you will need to discuss installation with your landlord.
Ground source heat pumps can be trickier to install, and you’ll need an area of land around your home. If you have a large garden, pipes can be laid horizontally, but the area must avoid trees as the roots can cause issues with digging trenches. Trees can also result in the area being too shady, preventing the ground from getting warm enough.
If you only have a small garden, pipes will need to be installed vertically in boreholes around 75 to 100 metres deep. This is usually a more expensive option and you may need a geological survey carried out.
With both options, you will also usually need space inside your home for the indoor heat pump unit and hot water cylinder.
For those considering a water source heat pump, you must ensure you have sufficient water to heat your home and that you have enough space to lay pipes between the water source and the building. Again, it is sensible to speak to a professional installer before proceeding.
Finally, while you won’t usually need planning permission to install a heat pump, if you live in a conservation area or a listed building, you’ll need to contact your council to check local requirements.
Before agreeing to get a heat pump installed, it’s crucial to weigh up the pros and cons to make sure you have the full picture:
From April 2022, if you live in England and Wales, you could receive a £5,000 grant from the government to replace your gas boiler with an air source heat pump. If your property needs a ground source heat pump, the grant increases to £6,000 as these units are more expensive.
The initiative will operate on a first come, first served basis, with payments capped at 30,000 units per year for three years. That means 90,000 units at a cost to the government of around £450 million.
Note that you won’t actually receive any cash or a voucher to use to pay the bill for the pump. The process involves you getting the work done and the contractor claiming back the grant funds directly. You would then receive a bill for the outstanding balance.
The first step is to find an installation specialist who will help you through the process.
The funds available are unlikely to cover the full cost of installing a heat pump, however, so you’ll be expected to make up any shortfall. Grants also won’t be available to those in social housing and new-build homes.
Heat pumps typically cost between £5,000 and £10,000 plus the cost of adapting your home to use the technology, so be prepared to pay a significant amount on top of the grant.
The scheme is part of the government’s plan to install 600,000 heat pumps a year by 2028. The sale of new gas boilers will also be banned from 2035, so if yours breaks down, you won’t be able to get a new one installed. Gas boilers in new builds will be banned from 2025.
It’s possible this ban will also extend to gas cookers. Climate change experts have recommended that new-build homes should be banned from connecting to the gas grid and homes should be equipped with electric induction hobs instead. As yet, however, no plans to do this have been confirmed.
I've been writing about personal finance issues for many years across a wide range of websites, magazines and newspapers. My role is to demystify financial products, explain people's options and help them make the most of their money.