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Are heat pumps worth it? Pros, Cons & Cost Savings Explained

Heat Pump Photography

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Around 14% of the UK’s carbon emissions come from home heating.1 That’s why the Government’s Heat and Building Strategy2  sets targets for phasing out gas boilers from 2035 – in favour of more low carbon alternatives

Heat pumps play a vital role in helping us heat our homes more sustainably. They’re incredibly energy-efficient (generating around 4 times more energy than they consume), and run on electricity instead of gas!A heat pump is an investment and not a decision many homeowners can make lightly. 

With so much information (and misinformation) out there, it’s difficult to know if they’re really right for your home. So we’ve put together this article to help you have a better understanding of whether a heat pump is right for you.

What is a heat pump?

A heat pump is a low-carbon, energy-efficient system that provides both heating and hot water for your home. It works by using electricity to transfer heat from an external source such as the air outside (air source heat pump) or the ground (ground source heat pump) into your home.

Think of a heat pump as a refrigerator in reverse: instead of extracting heat from the inside and releasing it outside (as a fridge does), a heat pump absorbs heat from the environment and moves it indoors. This process uses a refrigeration cycle the same principle found in air conditioners and fridges but in reverse, to efficiently warm up your home.

There are several types of heat pumps, including:

  • Air source heat pumps (ASHP)

  • Ground source heat pumps (GSHP)

  • Water source heat pumps

All heat pumps operate on the same basic principle: extract ambient heat, compress it to a higher temperature, and distribute it indoors.

Benefits of heat pumps

Heat pumps offer a range of advantages that make them a smart, future-proof choice for home heating in the UK:

Lower energy bills

Heat pumps are around three to four times more efficient than traditional gas boilers. This means they use much less energy to produce the same level of heat, which can lead to noticeable savings on your heating costs over time.

Low carbon heating

Because heat pumps run on electricity rather than burning fossil fuels, they produce far fewer carbon emissions. If paired with renewable energy sources like solar panels, they can make your home heating virtually carbon free.

Longer lifespan

A well maintained heat pump can last more than 20 years, which is often longer than a typical gas boiler. Some models can run efficiently for up to 25 years, offering long term reliability and value.

Access to grants and support

In the UK, financial support is available to help with the upfront cost of switching. The Boiler Upgrade Scheme (BUS), for example, offers grants of up to £7,500 towards the cost of installing a new heat pump.

Is your home ready for a heat pump?

Not every home is immediately ready for a heat pump, but many can be with a few adjustments. Heat pumps work best in homes that meet the following conditions:

Good insulation

A well insulated home is key to getting the most out of a heat pump. Proper insulation helps keep the heat in and reduces the amount of energy needed to maintain a comfortable temperature.

Modern electrical setup

If your home already has an up to date electrical system, it’s more likely to support the power requirements of a heat pump without the need for major upgrades.

Outdoor space available

Air source heat pumps require a bit of outdoor space for the external unit. Ideally, this space should be roughly the size of a washing machine and have good airflow around it.

Radiators or underfloor heating

Heat pumps work most efficiently with larger surface area heating systems, such as underfloor heating or modern radiators that are designed for lower flow temperatures.

If your home is older or not well insulated, you may still be able to install a heat pump — but you’ll likely need to improve your insulation or upgrade your radiators to get the best results.

Things to consider when selecting a heat pump

  • Upfront cost: installation typically costs between £7,000 to £13,000 depending on your house type. Government grants like the Boiler Upgrade Scheme (BUS) can significantly reduce upfront cost

  • Installation timelines: switching from a boiler can take a few days and may require some internal changes

  • Cold weather performance: modern heat pumps work well even in cold climates, but a properly sized unit is very important

Still not sure if a heat pump would work for your home?

The best way to find out if a heat pump is right for your home is to get a home energy assessment or speak with an accredited installer. They’ll evaluate your property and recommend the most efficient and cost-effective heating solution.

Interested in saying goodbye to gas? Get your heat pump from OVO.

You can now get your heat pump installed through our local heat expert. With a heat pump, you can save an average of £465 a year on your heating bills compared to a gas boiler.6 As an OVO customer, you’ll also unlock our free add-on, Heat Pump Plus, which gives you a cheaper electricity rate to power your heat pump for less.

Important Information

  1. Source: Energy Systems Catapult

  2. Source: Heat and Buildings Strategy

  3. Source: How a Heat Pump Works

  4. Based on the assumption that most modern boilers last between 10 and 15 years

  5. Savings will vary depending on your heat pump usage, efficiency rating, the cost per kWh of your standard home energy tariff, geographical location and weather. Actual sum is £467.54. Savings of £465 are based on the following comparison: a G-rated gas boiler running at 70% efficiency with an average annual consumption of 10,436 kWh at 6.98p per kWh used for heating and hot water, versus an air source heat pump installed through OVO with a Seasonal Coefficient of Performance (or efficiency rating) of 4.2 and an annual consumption of 1739 kWh at 15p/kWh with the Heat Pump Plus add-on. Terms and eligibility criteria apply.