Why You Should Install a Heat Pump in 2024

The UK’s housing stock is old, energy inefficient, and extremely reliant on fossil-fuel heating systems and in particular gas boilers. 

Despite heat pumps growing in popularity in the last few years, there is still a long way to go. A major transformation is needed if the UK is to achieve net zero by 2050 with heating currently responsible for 17% of the UK’s carbon emissions.  An assessment recently published by the Climate Change Committee (CCC) stated that the annual emission reductions outside the power sector must nearly quadruple. The report was especially concerned about home heating as heat pumps are being rolled out at one-ninth the rate they need to be by 2028, alongside falling rates of energy efficiency improvements. 

The UK is trailing behind its European neighbours with only 59,862 heat pumps being installed in 2022. However, this is an increase of 40% on the previous year, 2021. This is far from the government’s target of 600,000 a year by 2028. 

Although there isn’t a single solution that works for every home, government advisors on the CCC estimate that eight million heat pumps need to be installed in existing homes by 2035. If the UK was to fully replace all of its gas boilers, the UK would need to install 1.7 million heat pumps annually by 2036.

In simple terms, heat pumps extract heat from a source, such as the surrounding air, geothermal energy stored in the ground, nearby sources of water, or waste heat from a factory. It then amplifies it and transfers the heat to where it is needed.  

There has never been a better time to invest in a heat pump than now. Here are four reasons why you should consider installing a heat pump in the new year. 

You can save money on your energy bills
In recent times the cost of energy has soared and so it's an important factor to take into consideration when installing a heat pump. If you replace an oil, LPG, or electric boiler with an air-source heat pump you will most likely lower your energy bills. 
Air source heat pumps are a very efficient way of heating your home. By drawing energy from outside air, they can save you up to £780 a year in comparison to these traditional boiler systems.  

The efficiency of heat pumps is usually measured using two key metrics: the coefficient of Performance (COP) and the seasonal energy efficiency ratio (SEER). Heat pumps have a coefficient of performance (COP) of around four, meaning their energy output is four times greater than the electrical energy used to run them. This means that you will need a lot less energy to run them than conventional heating systems require. A gas boiler only turns 90% of the energy it uses into heat for your home. Ground Source heat pumps have an even higher coefficient of performance (COP) of 4.8.

However, the efficiency of heat pumps can vary depending on various factors, including the specific model, operating conditions, and local climate. The amount you save will depend on the system you are replacing. If you swap an older G-rated gas boiler for a well-designed heat pump, you could save around £295 a year on your energy bills under current energy prices. The savings on the swap would be less if you were replacing a new highly efficient gas boiler.  

Despite heat pumps being more efficient not everyone who installs a heat pump will see savings straight away as electricity is currently more expensive than gas. 

Ensuring your home’s walls, floor, and loft insulation are adequate before installing a heat pump will reduce your running costs. You should also check whether your radiators are big enough to get the same amount of heat with your heat pump as you would with a boiler.

If you already have solar panels, you can save money by using the free energy, they generate to power your heat pump. You can make further savings if you have a solar battery to store the sun’s energy to power your heat pump later in the day.

If you can stop using gas completely you will also save money on the annual standing charge.

There are substantial financial incentives for heat pumps
There’s more financial support for the upfront cost of heat pumps than ever before. If you live in England and Wales, you can get a £7, 500 grant towards installing low-carbon heating systems including heat pumps with the Boiler Upgrade Scheme. If you live in Scotland grants of between £7, 500 and £9,000 are also available. The Boiler Upgrade Scheme is part of a larger £3.9 billion funding package announced in the Heat and Buildings Strategy. This initiative aims to significantly cut carbon emissions from homes, making them more energy-efficient and environmentally friendly. 

Energy companies have also started doing more to make heat pumps more affordable. To give an example, some suppliers are also offering specific tariffs which are designed to reduce heat pump running costs. 

You can future-proof your home heating system
The UK government will ban natural gas for new builds from 2025 and a ban on gas central heating in existing homes is likely to follow sooner rather than later. 
The UK Government is currently considering “re-balancing” electricity and gas prices, with the specific aim of making heat pumps cheaper to operate than gas boilers in the future. Heat pumps would be much cheaper to run than gas boilers as they are far more efficient.

The government is also planning to implement a clean heat market mechanism that will ask boiler manufacturers to sell four heat pumps for every 100 gas boilers in 2024/25 or pay for the equivalent in heat pump credits if they can’t which amounts to one heat pump credit being worth £5,000. Decarbonising heat and encouraging heat pumps is essential for achieving net zero. Tighter rules and targets for industry must be combined with attractive incentives for consumers if the UK is to reach 600,000 installations a year in five years.

You can reduce your home’s carbon footprint
According to the most recent Climate Change Committee report buildings are responsible for around 17% of the UK’s emissions and most of this comes from using fossil fuel heating systems in our homes. Most UK residential buildings (23 million) are currently connected to the gas grid, using a traditional boiler.

Decarbonising our heating is crucial if we are to transition into a zero-carbon economy and meet our climate targets. 

Switching to a renewable, low-carbon heating system is one of the best ways you can reduce your home’s contribution to climate change. Swapping your gas boiler for an air-source heat pump can reduce your home’s carbon footprint by up to 65%. To give an example, a semi-detached home with an old G-rated gas boiler would save around 2,900kg of carbon dioxide emissions a year by switching to an air-source heat pump. As long as your new heat pump is a replacement for traditional gas, LPG, solid fuel, or an oil-fuelled boiler system your carbon footprint will be reduced. 

If heat pump technology was widely adopted, the UK has the potential to substantially reduce its emissions produced as a result of domestic heating and hot water.

A recent survey commissioned by the charity Nesta indicated that more than 80% of UK households who have replaced their traditional heating systems such as gas, oil, or LPG boilers with an electric heat pump were as satisfied or more satisfied with heat pumps compared to their previous heating system. The survey revealed that satisfaction levels were comparable whether the installation was in a new-build home or an older property which is at variance with the common misconception that heat pumps are only effective in modern buildings. 

The benefits of heat pumps make them a strong contender for the future of domestic heating. Their ability to save on energy costs and their environmental advantages make them a valuable addition to any home. As time goes on and technology improves, we can expect heat pumps to become even more efficient and cost-effective.

To give you an idea of the pricing process you and your heat pump installer will go through, our friends at Payaca wrote this helpful article that explains how your property's suitability for a pump is accessed and how the pricing process is performed.