Could a heat pump be free?
Funding has increased and heat pumps may now cost less than gas boilers
When it comes to eco-friendly home heating, heat pumps are hard to beat. They’ll keep your home cosy and warm, and keep your energy bills low. They also use less carbon than traditional gas boilers, helping us all on the path to net zero.
The costs are coming down
Maybe you’ve been putting off making the switch because of the initial cost? The good news is that they’re more affordable than ever. Thanks to the latest government incentives, eligible households can now get a £7,500 grant for their heat pump installation.
What does this mean for you and your home?
Buying and installing a heat pump is now really cost-effective. It’s often cheaper than replacing your boiler. The newly increased Boiler Upgrade Scheme brings the costs right down – to zero in some cases. You could end up with a brand new heat pump, fully installed and ready to go, at absolutely no cost to yourself.
How much will my heat pump cost?
Heat pump costs depend on a variety of factors. As with all heating systems, you’ll need the right size system to suit your home. If you have a large house to heat, you can expect to pay more.
You also may need to make a few adjustments to your home, such as adding a hot water tank, or making changes to your radiators. These extras will add to the overall cost. And then there’s the amount charged by your installer for the work they do.
Some heat pump cost examples
To give you an idea of costs, let’s use the example of a standard three-bed house in the UK. And we’ll assume you’re (sensibly) choosing one of Daikin’s Sustainable Home Experts to install your system.
The ‘Heat Pump Ready’ Home: FREE
For some homes that only require the heat pump itself, your bill could be zero. If your home is ‘heat pump ready’ the Boiler Upgrade Scheme grant of £7,500 would cover all the costs of your new monobloc heat pump.
‘Heat pump ready’ homes won’t need any additional equipment or adjustments before their heat pump is installed. If your home is newly built, with modern fixtures and equipment, this could apply to you.
The ‘Needs a Hot Water Tank’ Home: £1,400
Many homes will need a new hot water tank to go with their heat pump. A compatible hot water tank will make sure your new heating system provides energy-efficient heating and hot water for your home.
Thanks to the Boiler Upgrade Scheme, you could get a new heat pump and hot water cylinder, installed and ready to go, for under £1,500. That’s less than half the price of a new boiler and hot water tank.*
*Which Report 2023: average price of replacement gas boiler and hot water tank = £3,065
The ‘Needs Some Extra Work’ Home: £2,255
So what if your home needs some extra modifications, such as a new hot water tank, radiators and piping? Does that send the price through the roof? Even with all these adjustments, it’s still an affordable choice.
The £7,500 grant will help to offset the costs of any extra work, bringing the price lower than the cost to install a gas boiler. Which means you can enjoy a cosy home and a lower carbon footprint without having to foot the bill.
Don’t leave it too late
This new level of funding from the Boiler Upgrade Scheme is fantastic news for homeowners and the planet. It’s going to make heat pumps more affordable for everyone, and it’s going to put the UK on the path to creating a net zero world.
But, don’t forget it’s a limited fund. The grants are offered on a first-come-first-served basis, and with all the increased interest in heat pumps, we’re pretty sure they won’t be around for too long. There’s never been a better time to make the switch.
Begin your heat pump journey
Find out more about our heat pumps, the available funding, and the steps you need to take next.
About the Boiler Upgrade Scheme
The Boiler Upgrade Scheme is a government incentive in England and Wales, that aims to make heat pumps more accessible to all. It’s open to homeowners looking to replace their fossil fuel boilers with an eco-friendly heat pump. And from October 23rd 2023, the grant funding increased from £5,000 to £7,500. This cash boost makes heat pumps more affordable than ever. And even free for some homes.
Is my home eligible?
To be eligible for the Boiler Upgrade Scheme, you will need to own the property. You’ll also need to make sure you have a valid Energy Performance Certificate (EPC). For your EPC to be accepted, you should have no outstanding recommendations for loft or cavity wall insulation. If you do, you'll need to insulate your home before applying.
To be eligible for the Boiler Upgrade Scheme, you will need to own the property