You’re likely to hear contrasting views about heat pumps.
Many in the knowledge think they’re the undoubted future of home heating, whereas others think they’re a load of eco-nonsense.
We’re here to give you an objective look as to whether heat pumps are worth it.
The stats
There were almost 60,000 heat pump installations in 2024 according to the latest figures from MCS – a record year with a 43% increase on 2023. Overall there were more than 260,000 certified installations of renewable technologies in UK homes and small businesses, covering the likes of heat pumps, solar panels and battery storage.
Despite record numbers, heat pumps still make up just 1% of household heating systems. With ambitious government targets aiming for 600,000 annual installations by 2028 – a ten-fold increase on the record numbers of 2024 – there are still questions about whether heat pumps are worth the investment for homeowners.
In Europe there are fewer questions. Heat pump adoption rates are around 3,068 per 100,000 people in Europe – much higher than the 412 per 100,000 in the UK. In Norway for example, approximately 60% of homes have a heat pump and in Sweden it’s just less than half.
There are various types of heat pump, but the most popular in the UK is an air source heat pump (ASHP). There are six ASHP installations for every ground source heat pump.
If you’re just getting started on your heat pump research, check out this guide to air source heat pumps and our heat pump size calculator.
So, what are the main advantages of installing a heat pump?
Benefits of Heat Pumps
Energy efficiency
Heat pumps are remarkably efficient, operating at up to 300-400% efficiency. This means they produce three to four times more energy than they consume. This measurement is known as the heat pump’s CoP (Coefficient of Performance).
As Ryan Lewis of 21 Degrees explains, “Heat pumps operate by transferring heat rather than generating it through combustion [unlike gas boilers], making them incredibly energy-efficient. This technology allows them to generate more heat than the electricity they consume, significantly reducing energy bills over time.”
Lower energy bills
Switching to a heat pump can reduce your energy bills. Homeowners can save between £260 and £580 a year, depending on their previous heating system and home set up.
Over a heat pump’s lifespan, these savings can add up to over £4,800 compared to a gas boiler.
Long lifespan
With an average lifespan of 20-25 years, heat pumps are built to last. This is longer than than 10-15 year lifespan of a gas boiler.
Like a boiler though, it’s wise to get a heat pump serviced every year to keep on top of maintenance, clean filters and make sure everything’s working as it should be. There’s a lot of equipment with a heat pump set up, so it’s essential it’s all working as it should be.
As Lewis says, “While their components are more advanced and costly upfront, their durability and reduced maintenance needs make them a cost-effective choice over their lifetime.”
Greener choice
Heating accounts for 18% of the UK’s emissions. It’s thought that replacing fossil fuel-powered systems with heat pumps can cut household emissions by up to 90%.
As heat pumps are powered by electricity, opting for a green energy tariff, such as those from Octopus Energy, is your best option. Pairing heat pumps with renewable electricity sources like solar panels further enhances their environmental benefits.
Increased property value
Installing a heat pump can boost your property value by up to 3–16%. With energy-efficient, green tech homes becoming increasingly desirable, heat pumps are a smart long-term investment that people will pay extra for.
You can find a few more details in our pros and cons of air source heat pumps.
Do heat pumps keep you warm enough?
Heat pumps are a type of heating system. If they had one main job, it’s to keep you warm – they’d be pretty useless otherwise…
Yes, when installed correctly heat pumps keep you warm enough.
Lewis says, “Many believe heat pumps don’t work well in colder weather or are only suited to new builds, but this is simply not true. With proper installation, heat pumps are effective even in older homes and colder climates, as proven across Europe. Heat pumps use the same technology as fridges (except the opposite way round) and I never hear people complaining about the job their fridges do.”
Heat pumps run best and most efficiently on a ‘low and slow’ principle, meaning they run in the background to keep your home at a consistent temperature – usually between 18-21oC. Keeping something running may seem counter-intuitive when it comes to energy use, but just like your fridge freezer, it works out more efficiently.
You might not get a familiar blast of heat like you do when the central heating system is switched on. This is because ASHPs run at lower flow temperatures, but you won’t necessarily need this ‘blast’ as your home should be generally warmer with more consistent heat.
Heat pump costs
The benefits over the long term stack up nicely, but what about the costs?
It’s no secret that the upfront costs of a heat pump are more than gas boilers. Air source systems usually cost around £10,000 and £14,000 – around three-four times more than a gas boiler. Ground source heat pumps come in at £20,000-£30,000. According to a recent report from Aira, perceptions of high upfront costs are preventing 57% of people from considering a heat pump.
The good news is that prices are only expected to come down. By 2023, it’s expected that heat pumps will be 20-25% cheaper than today.
For now though there are incentives to install a heat pump.
The UK government’s Boiler Upgrade Scheme offers a £7,500 grant to offset the cost of heat pump installation. This can reduce the financial barrier significantly, bringing the average cost of an air source heat pump down to around £5,000. This is much more manageable for most households. According to Octopus Energy, 90% of their quotes are cheaper than the national average.
Then you have to account for the benefits as above – energy efficiency, fewer carbon emissions, consistent warmth and reduced running costs. Speaking of which…
Running Costs
Alongside the initial costs, you need to weigh up running costs to see if heat pumps are worth it.
We know that heat pumps are super efficient in how they use energy, but they still need to consume energy to run. These costs wouldn’t be so bad except for the high unit cost of electricity, currently around four times more expensive than gas. This all but wipes out the savings on being three-four times more efficient.
Electricity running costs
The high running costs of electricity comes down to the government. Unbelievably, there’s about triple the amount of taxation on electricity than there is on gas. Average standing charges for electricity are also around double that of gas. This really does need to be addressed centrally.
The running costs have been tested in the most efficient setting by the Energy House 2.0 experiment. With a near perfect set up, you can run a heat pump for £2-3 a day.
In the real world, running costs are likely to be higher than this and somewhere similar to the running costs of a gas boiler, if not a little cheaper.
There are ways to lower the running cost of a heat pump. The best way is to switch to a specialised heat pump tariff, such as Octopus Cosy. Homeowners can save between £260-£580 a year compared to gas boilers when using these tariffs.
If you have larger green home tech installed, then you can:
- Power an ASHP from solar energy if you have rooftop panels
- Make use of cheap electricity from battery storage
Over the long term, the payback period for a heat pump is between 4.5 and 10 years, depending on energy savings and the initial installation cost. When you consider that heat pumps can last for 25 years, this is a good return.
Other Factors to Consider
- Installation process – Installing a heat pump can be more complex than fitting a boiler. The process involves assessing your home’s energy efficiency, upgrading insulation if necessary and potentially installing larger radiators or underfloor heating, which may require new pipework.
- Space for extra equipment – Alongside the heat pump itself that will be installed outside, you’ll need room for indoor units too. This is roughly equivalent to a boiler, but if you have an air-to-water heat pump to supply you with hot water, you’ll also need space for a hot water tank. Some of the indoor heat pump installations can take up quite significant space.
- MCS-accredited installer – Make sure you choose an MCS-accredited installer who will also apply for government grants for you.
- Maintenance – Heat pumps don’t require a lot of maintenance, but they will need an annual service to clear filters and check the system.
Are Heat Pumps Right for You?
Heat pumps are a great choice for environmentally conscious homeowners. They can certainly cut your emissions and reduce your impact on the planet.
Heat pumps are best suited to homes with good levels of insulation. This is because the water running through the system (if you have an air to water system) flows at a lower temperature. This is usually between 35°C and 55°C – anything above 55°C is consider a ‘high temperature heat pump’ installation. It’s all to do with efficiencies. Heat pumps run best with lower flow temperatures.
With lower flow temperatures, the reality is that your radiators don’t get as hot as they do with a gas-fired boiler. With the right install this won’t affect air temperature in your home as heat pumps operate on ‘low and slow’ principle, but it does mean you want to maximise heat retention as much as possible.
In terms of running costs, the jury is still out. This is largely due to the high cost of electricity in the UK, which new government officials have promised to address. The solution for homeowners now is to source a good tariff to help you access lower cost energy at certain times, just like the Octopus Cosy does.
There’s also the practical considerations of space in your home. Airing cupboards and utility rooms should have enough space for the indoor units, but it might take some thinking about.
When choosing to switch from a gas boiler to a heat pump, there’s a lot to consider. From installation and set up to practicalities and daily operation. However, once you get through the headache stage, you’re on to a winner and will be set up for the next 25 years with renewable-based, low-carbon heating.
Ryan Lewis of 21 Degrees says, “It’s important to look beyond the initial expense and consider the long-term benefits. Heat pumps provide cleaner energy, lower running costs and a more sustainable solution to home heating.”
“If you’re weighing up your options, don’t let the myths or initial costs hold you back – heat pumps are an investment in your home’s comfort, your wallet and the environment. Now is the perfect time to take advantage of the government support available and make a smart, green choice for your home.”
