With Boiler Upgrade Scheme funding a homeowner can get an air source heat pump installation worth £12,000 for only £7,000, a whopping £5,000 saving. Experts including Savills have confirmed that the value of an air source heat pump installation directly increases the value of a property – so that’s a free £5,000 value gain.
Following the announcement of the October energy price hikes, the average household with a gas boiler can expect the annual running costs of an air source heat pump to be around £500 per year cheaper. This saving is expected to increase again in January as energy prices continue to soar. Assuming no increase a £500 annual running cost saving is £12,500 over the operating lifetime of an air source heat pump.
When you consider both the capital and annual running cost benefits of an air source heat pump, the combined benefit is a massive £17,500, or £700 per year.
If it cost £7,000 initially then a £700 annual benefit is a 10% return!
Now of course we know energy prices will continue to change over the next 25 years, but one thing is clear from the cost of energy crisis: the age of cheap gas is over!