UK’s cheapest heat pumps go on sale but would you ditch your boiler?

Octopus Energy has unveiled an air source heat pump that can be fitted for as little as £2,500 and aims to tackle the major objection to these devices: the price.

The announcement puts the firm in competition with British Gas, which recently said it would cut heat pump costs to as little as £2,999 per customer.

Heat pumps gather heat from either the air or ground and can replace traditional gas boilers.

The Government wants to get 600,000 heat pumps a year fitted by 2028 to lower UK carbon emissions. But the country currently only fits around 42,000 heat pumps a year, according to the European Heat Pump Association.

The major barrier to more homes picking heat pumps is the cost of buying and fitting them. The devices cost between £8,000 to £30,000 to buy and fit, with the big price range reflecting which type you buy and what sort of home you have.

Cost saving: Heat pumps can knock up to 25 per cent off your heating bills, but can come with some hidden costs

But Octopus says its heat pumps might cost as little as £2,500 per household, and no more than £4,000 for most homes.

That is based on the homeowner getting a voucher of up to £6,000 as part of the Government’s Boiler Upgrade Scheme, then topping that up with £2,500 to £4,000. 

The Octopus heat pumps are being fitted later this year, but the firm has not said exactly when. The firm hopes to be able to knock £500 off the overall bill for a heat pump this year.

What are the advantages of a heat pump?

Experts say they can cut up to 25 per cent off your energy bills as the devices require less power to run, which also makes them more environmentally friendly than boilers. They can also last longer than boilers – up to 20 years.

Are there hidden costs with heat pumps?

Getting the most out of a heat pump can involve extra costs to get the most out of them.

Poorly insulated properties will not see the same benefits from a heat pump, as the devices work at lower temperatures than boilers. This means homeowners fitting a heat pump should consider sorting out decent wall and loft insulation, as well as double glazing.

The cost of this can run into the thousands of pounds – but will help keep energy bills down from that point onwards. 

What do you need to know about professional home insulation?

You may also need larger radiators to get the most warmth out of a heat pump.

That is because the devices do not heat water to as hot as boilers can, so radiators with larger surface areas may be needed to maximise heat.

Your property must also be suitable to get a heat pump fitted. 

A ground source heat pump requires space outside to bury the pipes needed to generate heat. 

Both ground source and air source heat pumps require a hot water cylinder to be fitted, which may not suit smaller flats. 

Completely grounded: The most expensive heat pumps draw heat from the ground itself

How do heat pumps work?

There are two main different types of heat pump: air source and ground source. An air source heat pump looks like an air conditioning unit that sits outside the home. They come with a fan unit which brings in air from outside the home.

This moves over a heat exchange surface, with the heat causing a special refrigerant liquid to evaporate and turn into a gas. This is compressed, increasing the pressure, and raising the temperature, and is then used to produce hot water.

The hot water needs to be stored in a water cylinder inside the home, where it can supply radiators, taps, and showers. The system runs on electricity and the two units are connected by copper pipework.

Ground source heat pumps are more expensive and use pipes that are buried in the garden to extract heat from the ground. This heat can then be used to heat radiators, under-floor or warm air heating systems, and hot water in your home.