How heat pumps could save you up to £1100 off your annual energy bills

With a staggering 23 million residential properties in the UK currently connected to the gas grid, and heating prices remaining high, households could make big long-term savings while reducing their carbon footprint by installing heat pumps to future-proof their homes.

By Kaleigh Pritchard  |  Published
Households could save hundreds of pounds off their yearly energy bills by installing a heat pump — while keeping homes warmer.

A warm and cosy house during the colder months could be easily achieved through the installation of energy efficient air source heat pumps (ASHPs).

Residents of Gloucestershire and South Gloucestershire can book a visit from a home energy adviser at Severn Wye Energy Agency to survey their home and produce a bespoke home energy report, to discover the different improvements that can be made to their property — such as installing heat pumps — to ensure it is as energy efficient as possible.

The free home visit, survey, report and follow-on support plan can be applied for now — this service would usually cost more than £500.

The most common heat pump for UK homes is the air source heat pump, which works by transferring the low-grade heat from the air outside, before distributing it through radiators or underfloor heating.

Ground source heat pumps (GSHPs), use heat from the ground to do this — and hot water can also be stored in a hot water cylinder for taps and showers.

In contrast to conventional, condensing fossil-fuel boilers, heat pumps run continuously and provide a consistent, comfortable temperature as opposed to an intense burst of heat at certain times during the day — but families can still personalise their heating routine with a programmable thermostat, making chilly early mornings a little bit easier.

Heat pumps can extract energy from an air temperature as low as –15 degrees Celsius, for every one kilowatt of electrical energy consumed to run the pump, the most efficient system can provide up to four kilowatts of heat.

Though many people assume heat pumps can only be installed in new builds, they are actually suitable for any residential property — even classic cottages and listed buildings can benefit from this investment.

As the energy industry moves towards renewable energy, those who choose to install heat pumps could benefit from lower prices in the future, making it a great long-term home improvement.

While it's currently an investment of up to £13,000 for an air source pump and up to £19,000 for a ground source pump, according to the Energy Saving Trust, some of the cost benefits of switching to a heat pump include a saving of up to £1100 per year if replacing an inefficient electric storage heater; up to £510 per year if replacing an inefficient G-rated LPG or oil boiler; and up to £340 per year if replacing an inefficient gas boiler — plus, each well-maintained pump can last up to 30 years before replacement.

In 2023, the UK government increased the amount of funding available to put towards installing heat pumps through the non-means-tested boiler upgrade scheme, which offers successful applicants grants of £7,500 towards an air source or ground source heat pump, or £5,000 towards a biomass boiler.

Anyone interested in making energy-saving home improvements, such as installing heat pumps, can apply by visiting

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