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 just £2,500 and aims to address the biggest objection to these appliances: the price.

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

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

The government aims to install 600,000 heat pumps a year by 2028 to reduce carbon emissions in the UK. But the country currently only fits about 42,000 heat pumps a year, according to the European Heat Pump Association.

The main barrier to more homes opting for heat pumps is the purchase and installation costs. The appliances cost between £8,000 and £30,000 to buy and fit, with the large price range reflecting what type you’re buying and what kind of home you have.

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

That’s based on the homeowner being given 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 will be installed later this year, but the company has not said exactly when. The company hopes to save £500 on the total bill for a heat pump this year.

What are the advantages of a heat pump?

Experts say they can save up to 25 percent on your energy bill because the devices require less power to operate, which also makes them more environmentally friendly than boilers. They 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 incur additional costs to get the most out of it.

Poorly insulated buildings will not see the same benefits from a heat pump, because the devices operate at lower temperatures than central heating boilers.

This means that homeowners installing a heat pump should consider getting decent wall and attic insulation, as well as double glazing.

The costs of this can run into the thousands of euros, but from that moment on it helps to keep the energy bill low.

> What you need to know about professional home insulation

You may also need larger radiators to get the most heat from a heat pump.

That’s because the appliances don’t heat the water as hot as boilers, so larger surface area radiators may be needed to maximize heat.

Your home must also be suitable for installing a heat pump.

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

A hot water boiler must be fitted for both ground source and air source heat pumps, which may not be suitable for smaller flats.

How do heat pumps work?

There are two main different types of heat pumps: air source and ground source.

An air source heat pump looks like an air conditioning unit that sits outside the house. They come with a fan unit that takes air from outside the home.

This moves over a heat exchange surface, where the heat causes a special coolant to evaporate and turn into a gas. This is compressed, increases the pressure, raises the temperature and is then used to produce hot water.

The hot water must be stored in a water cylinder in the house, where it can supply radiators, taps and showers.

The system runs on electricity and the two units are connected by copper pipes.

Ground source heat pumps are more expensive and use pipes buried in the garden to extract heat from the ground.

This heat can then be used to heat radiators, floor or hot air heaters and hot water in your home.