Air Source Heat Pump Running Costs

In this article, dwellow explain the costs associated with running an air source heat pump (ASHP) and discuss the biggest factors that will determine the cost including:

• Whether or not you plan to use solar panels
• The current energy cap on electricity prices
• Size and hot water / heating demand of your property
• Quality and efficiency of cavity wall and loft insulation
• How efficient your radiators are
• Whether or not you plan to install underfloor heating

Installing an eco-friendly ASHP is a big financial decision and it’s worth exploring if you’re eligible for government grants (worth up to £7,500).

How Much Do Heat Pumps Cost To Run?

An average ASHP is likely to cost anywhere from £800-£2,500 per year to run which equates to £67-£208 per month.

Unlike a gas boiler, these figures relate directly to your electricity bills (heat pumps don’t use gas). But like a gas boiler, the big potential range in running costs comes down to dozens of variables.

7 Factors That Affect Heat Pump Running Costs

1. Solar Panels. Once your ASHP is installed, the running costs are limited to annual maintenance and the cost of electricity.
   Heating systems using air source heat pumps can be coupled with solar panels. If you have sufficient battery storage and a big enough solar panel system, you could eliminate the cost of electricity completely. This could save thousands of pounds each year.
2. Electricity Prices. Electricity prices play a huge role in exactly how much an ASHP costs to run. Using the current energy price cap (1 July to 30 September 2024), you’ll be paying 22.36p per kWh of electricity.
3. Size of Your Property. The size of your property is one of the biggest factors when it comes to an air source heat pump’s running cost. Alongside the size of the property, the amount of radiators, taps and showers all make a big difference too.
4. Type of Insulation. Cavity wall and loft insulation of any kind will help reduce the running costs of an ASHP. The better this insulation, the bigger the reduction in overall running costs. If you live in an old property with little or no insulation, it would benefit from being insulated before installing an ASHP.
5. Energy Efficiency of Radiators. Installers fitting an ASHP suggest upgrading radiators. Old radiators are incredibly inefficient and upgrading to more efficient radiators will reduce your electricity bills and overall running costs dramatically.
6. Gas Standing Charge. If you’re switching from a gas boiler to an ASHP, assuming you have no other gas appliances, you’ll make a saving in the form of a gas standing charge.
7. Underfloor Heating. Underfloor heating works in a similar way to an ASHP, it works best when it’s running low, slow and consistently. Coupling an ASHP with an underfloor heating system is a great way to bump up efficiency.

Heat Pumps vs Gas Boilers

Running Costs

Expect the running cost of a gas boiler to be similar to an ASHP. Whilst electricity is over 3 times the price of gas, air source heat pumps are usually over 3 times the efficiency of a gas boiler.

Assuming you’re using an efficient gas boiler, running costs for a heat pump would be comparable. If you use an old and inefficient boiler (especially if it’s oil), a heat pump is likely to represent a huge monthly cost saving on your energy bills.

Installation Costs

The installation cost of a gas boiler is much cheaper than an air source heat pump. However, they are comparable in cost if you’re able to utilise government grants for an ASHP installation.

A typical combi gas boiler will cost around £3,000 to install. By contrast, you’ll pay around £7,000-£12,000 for the average ASHP installation. Based on installation costs alone, gas boilers are generally cheaper. However, as you can see from the fixed price generated using dwellow’s clickable tool here, the gas boiler doesn’t qualify for a government grant (up to £7,500) and the air source heat pump installation does.

How To Reduce Heat Pump Running Costs

The best way to keep the cost of running your heat pump as low as possible is regular maintenance. Heat pumps use filters, which over time get clogged. A clogged or blocked filter is going to restrict flow and cause your heat pump to run inefficiently, increasing electricity consumption.

Typically, you should schedule a service for your heat pump at least once a year.