Could a Heat Pump Save You Money on Your Energy Bill?

The UK government plans to install 600,000 heat pumps a year by 2028 to help reduce carbon emissions, but how much money will they save you money on your energy bill?

What is a Heat Pump?

A heat pump is an environmentally friendly source of heating which can be used in residential, commercial and industrial settings. Heat pumps are able to extract energy from the ground, water or air and then raise the temperature of the energy to provide heating and hot water all year around, no matter the weather.

Different Types of Heat Pump

Ground Source Heat Pump (GSHP): As part of the installation of a ground source heat pump, coils of pipe (ground loops) are laid either horizontally in trenches or vertically in boreholes. The pipes are filled with a water and antifreeze solution. These pipes collect the heat energy from the ground and pass it back to the heat pump. GSHPs are the most efficient type of heat pump as the temperature in the ground remains consistent all year round. The limitation with ground source heat pumps is that they require a considerable amount of land to lay horizontal ground loops and the alternative which is to drill boreholes, can be expensive.

Air Source Heat Pump (ASHP): Air source heat pumps work in a similar way to a fridge, they take in air from the outside and raise the temperature to provide heating, whereas a fridge will lower the temperature to keep contents cool. Air source heat pumps are a popular choice of heat pump as they require less work to install and can be fitted on an external wall of the property to save space.

Water Source: Heat energy can also be extracted from water which can provide an ideal solution if a property is located near to a large body of water such as a lake. A pipe system is floated out onto the water and then submerged until it rests at the bottom of the water source, held in place by weights. Like ground source pumps, the pipes collect the energy from the water and pass it back to the heat pump where the temperature is raised.

How Efficient Are Heat Pumps?

Whilst modern condensing boilers can achieve approximately 90% efficiency, a heat pump is capable of reaching efficiencies of 400% - a heat pump can produce over 4kW of energy for every 1kW of electricity used. As heat pumps require less energy to operate, this contributes to a saving on your electricity bill.

Load Shifting

Load shifting is moving your energy use outside of peak usage times (usually between 4pm-7pm) in order to save money on your energy bill. No other heat system has the load shifting capabilities that heat pumps do. Accessories such as smart meters, heat and electric storage batteries can be used in conjunction with your heat pump along with agile tariffs, offering you the ability to switch your energy usage to a time of day where the energy costs less. Heat pumps can work in synergy with these accessories and tariffs, providing the necessary heat load to maintain your preferred temperature, learning how long your home takes to heat up and cool down whilst also taking into account predicted weather temperatures.

How Much Could You Save?

Heat pumps can save you at least 26% on the cost of your energy bill. The average UK household energy bill is £1,289* meaning you’d save over £200 a year. In addition to this, the UK government offers financial incentives to encourage the switch to renewable heating systems such as the Renewable Heat Incentive (RHI) and the Green Homes Grant. RHI offers homeowners quarterly payments based on the amount of renewable heat your system produces. These payments last for 7 years after the date of installation offer a great way to get a return on your investment. The Green Homes Grant offers an upfront payment of up to £5,000 (£10,000 for low income households) to help cover the cost of installing a heat pump.

About the Contributor
At Thermal Earth we have over 14 years experience in renewable energy technologies and we're fully industry accredited. We've installed over 2500 heat pumps across the UK, working on projects of every scale from rural residential properties to industrial factories. Our highly-skilled and knowledgeable in-house team are able to manage and deliver all aspects of heat pump installation, from design and drilling to electrics and pipework.

To find out more about information on heat pumps and how they can help you save on your energy bills. Feel free to visit the following website: https://www.thermalearth.co.uk/