Do Heat Pumps Save Money?
The amount of money an air source heat pump will save you depends on the system you have installed. Most heat pump systems are between 2-4 times more efficient than traditional boilers and furnaces and can be 300% to 450% efficient - providing the home is well insulated and has relatively low heat loss.
In order to enjoy energy savings over traditional heating systems, homes with heat pump systems require loft insulation and cavity wall insulation.
The Department of Energy states that households can save around £100 every year when switching to a heat pump*. The main factors that affect potential savings include house size, the heating system they are replacing, local climate, house heat loss, and the efficiency of existing radiators and underfloor heating systems. As energy prices and tariff rates change, so will estimated costs and savings, and as renewables generation and access to heat pump-friendly tariffs increase, savings could improve. Switching from more expensive heating systems such as oil, LPG (liquid petroleum gas), or direct electric heating systems to a heat pump is likely to have a bigger impact on your energy usage and heating bills.
*Source (January 2025):
gov.ukCan I Install an Air Source Heat Pump?
Air source heat pumps can be retrofitted into most properties although changes to the existing pipework and radiators may be required depending on the project.
The heat pump and controls are not too dissimilar from conventional oil or gas boilers, which can make adapting to an air source heat pump much easier. They are widely considered to be one of the best renewable-compatible heating systems for older properties and renovation projects.