Heat pump bill a third higher than gas boiler

Trade body concludes that environment-friendly move comes at high price, with rise in energy bills

The cost of running a heat pump in an average home will hit more than £1,000 a year for the first time, nearly a third more than a traditional gas boiler. An analysis of Ofgem figures by the Energy and Utilities Alliance, a trade body, has found that when energy bills rise in April, the cost of running a heat pump at the minimum level of efficiency will rise from £919 to £1,251. This is hundreds of pounds more expensive than a gas boiler, for which prices will climb from £584 to £984.

THE cost of running a heat pump in the average home will hit more than £1,000 a year for the first time, nearly a third more than a traditional gas boiler.

An analysis of Ofgem figures by the Energy and Utilities Alliance, a trade body, has found that when energy bills rise in April, the cost of running a heat pump at the minimum level of efficiency will rise from £919 to £1,251.

This is hundreds of pounds more expensive than running a gas boiler, for which prices will climb from £584 to £984.

This means that homes heated using traditional means, such as a boiler, could save roughly £267 over the course of a year. These homes would emit 1,415kg more carbon over the year than heat pump users, the EUA said.

For larger homes, the cost difference is even more dramatic. The cost of running a heat pump over a year in a fivebedroom house will increase from April from £1,301 to £1,773.

It comes as the energy price cap, which limits how much suppliers can charge for gas and electricity, will increase by 54pc from April

Meanwhile, the cost of heating the same house with a gas boiler would increase from £787 to £1,352, some £421 less than a heat pump.

The Prime Minister has vowed to wean households off natural gas as part of his pledge to hit net zero by 2050. By 2025, builders will be banned from fitting conventional gas boilers in newbuilds and ban the sale of new boilers by 2035 for all households.

The Government wants 600,000 heat pumps to be installed each year by 2028. But they come at a considerable cost. Purchasing and installing a heat pump typically costs between £12,000 to £15,000. For older and listed homes it can be much more, with some homeowners incurring costs of more than £50,000 for the insulation, excavation and new radiators necessary for a ground source pump.

Poorly insulated and drafty homes also lower a heat pump’s efficiency, raising running costs and carbon emissions. This means households may have to spend additional money on upgrading to ensure their heat pump runs effectively.

There are sources of funding available to help pay for their installation.

Next month, the Renewable Heat Incentive, which gives cashback for generating clean energy, is ending. The grant offered quarterly payments based on the amount of renewable energy a household’s system produces, for up to

seven years. It will be replaced by the Boiler Upgrade Scheme, which will offer grants of up to £5,000 to help tackle the installation costs of heating systems such as heat pumps.

This week, it emerged that energy scores for homes are to be overhauled by the Government amid fears that installing a heat pump could cut the value of properties.

Energy Performance Certificates are currently based on what it costs to heat a home rather than carbon emissions. As such, homeowners can risk downgrading their EPC by installing a heat pump.

These certificates are increasingly tied to property prices. Landlords are required to hit a minimum rating under new rules.