Latest news with #heatpump
The Independent
a day ago
- Business
- The Independent
Take up of heat pumps ‘may be boosted if households shown running cost savings'
Many households may switch to a heat pump if they had a better idea of how much money it could save them over the longer-term in running costs, a report indicates. Banking and finance industry body UK Finance, which released the findings, said a blend of targeted policy measures is needed to encourage homeowners, landlords, and housing associations to retrofit their properties with 'green' technology. Its Unlocking Demand for Green Home Finance report used YouGov research to show the attitudes of UK consumers specifically towards heat pump technology. It said the UK needs to install around 1.5 million heat pumps per year by 2035 to meet its carbon reduction goals. The research indicated that 54% of people felt the main barrier discouraging them from getting a heat pump was the up-front cost. But 44% said they would switch if they were provided with a clear idea of the savings in running costs. The report set out various recommendations, including establishing a government-led body or group to drive collaboration; launching a public awareness campaign with independent guidance; and providing grants, subsidies, and a coordinated plan to train sufficient tradespeople. Clear long-term expectations should also be set, so that households and firms can make preparations and energy efficiency metrics should also be updated, UK Finance said. Ian Bhullar, director of sustainability policy at UK Finance said: 'To meet our ambitious targets on greening the UK's housing stock we need to drive demand and convince the public of the benefits. 'Lenders are committed to playing their part and through the Government's Warm Homes Plan we have the opportunity to really make a difference. 'Increasing demand for green home improvements will bring significant benefits, stimulate job creation, drive innovation, and reinforce the UK's energy security in an increasingly volatile global market.' More than 4,200 UK adults took part in the research in December 2024, among whom nearly 4,000 did not have a heat pump.
CNET
13-05-2025
- Business
- CNET
From Heating Oil to Heat Pump: One Homeowner's Savings Story
Heating and cooling your home make up the biggest chunk of your home's energy costs. But not enough people are considering a heat pump as a solution. The Energy Information Administration data shows 31% of energy consumption comes from air conditioning and space heating. It's no wonder CNET's latest energy cost survey found 78% of Americans are stressed out about their utility bills. While these energy-efficient HVAC systems have gained popularity in recent years -- outpacing gas furnaces for the past three years -- the same CNET survey also showed only 14% of respondents plan to upgrade to a heat pump to help reduce those energy costs. At CNET, we are big fans of heat pumps because of their efficiency and ability to both heat and cool your home by transferring heat rather than generating it. While heat pumps are often advertised as a money-saving home upgrade, the actual savings depend on where you live, electricity rates and the HVAC system you're replacing. So, how much can you really save with a heat pump? We asked home electrification expert and Pennsylvania homeowner Wael Kanj, who is also a senior researcher at Rewiring America, a nonprofit that advocates for home electrification efforts. A heat pump case study: Pennsylvania Heat pumps are an energy-efficient way to keep your home comfortable year-round. Heat pumps run on electricity and move heat from inside your home to outside to cool it. Then it reverses the process for heating by pumping the heat inside. We spoke with a homeowner in Pennsylvania who tracked their heating and cooling costs for the past nine years. The home was built in the late 1950s and used an air conditioner and heating oil before installing a heat pump in January 2022. Prior to installing a heat pump, the homeowner's electricity costs included air conditioning, lights and home appliances. In 2019, the homeowner completed an energy audit to evaluate the home's efficiency and made weatherization improvements in 2020. We reviewed their energy cost data to assess the overall energy savings from switching to a heat pump compared with using electricity and heating oil. Before installing a heat pump, the homeowner's average electricity bill totaled $138 per month. After the heat pump, their average bill increased to $153. While the homeowner's total electricity costs increased, they saved on total heating and cooling expenses by installing a heat pump. Here's how. Total energy costs The following table displays the total costs for heating and electricity from 2016 to 2024. There's a significant decrease in overall costs after heat pump installation in 2022. Year Annual energy cost 2016 $2,800 2017 $2,700 2018 $4,000 2019 $3,050 2020 $2,100 2021 $2,500 2022 $1,700 2023 $1,900 2024 $1,850 Does a heat pump save you money? The short answer is yes, heat pumps save you money. But how much you save depends on the system you're replacing, how much energy you use and where you live. Your electricity bill might go up because heat pumps use electricity for both heating and cooling. But heat pumps will save money overall because you won't pay for heating fuels. Natural gas is cheaper than delivered fuels, like propane or heating oil. So if you're replacing delivered fuels, you will save more than someone replacing a natural gas heating system. You can determine your home's potential energy savings using the Energy Star calculator or Rewiring America Personal Electrification Planner. Energy savings depend on where you live As mentioned, location plays a big role in potential heat pump savings due to the climate, home size, insulation and energy costs. In cold climates where heat is used more frequently, those using delivered fuels will save more money with a heat pump than those using natural gas. However, some are concerned that extreme cold temperatures affect heat pump efficiency. "A lot of folks will probably hear heat pumps don't work where it's really cold. And that's just not true," Kanj said. "Many of the modern heat pumps work into negative Fahrenheit temperatures." For example, the Mitsubishi H2i still keeps working down to minus 13 degrees Fahrenheit. Below these temperatures, heat pumps can lose efficiency and need more energy to operate. Electricity costs in your area can also impact how much you save with a heat pump. Homes with poor insulation or drafty doors and windows may use more electricity to maintain indoor temperatures. Kanj recommends a home energy audit to make your home as efficient as possible. Expensive electric bills might be an issue for those in states with high rates, such as Hawaii, Connecticut and Texas. But heat pumps are more efficient than traditional systems, so it may not be as much as you think. For example, the Pennsylvania homeowner's electricity bill increased by only $15 after switching to a heat pump, and they still saved money overall by eliminating heating oil costs. It depends on your heating fuel The type of fuel you use for heating impacts how much money you can save with a heat pump. "If folks are using delivered fuels in their household, then we think there's a high likelihood those would save by switching to a heat pump," Kanj said. "Folks in the southeast and areas with more tempered climates have a higher likelihood of saving money too." The homeowner from the Pennsylvania case study saved $800 in their first year with a heat pump compared with the previous year using air conditioning and heating oil. The estimated annual savings from switching to a heat pump from delivered fuels is $810 more than switching from natural gas. "The savings in natural gas is less, but if you live in a place where you use more air conditioning a heat pump could help you save more," Kanj said. Heat pumps may not drastically reduce your bill if you already have cheap heating fuel, like natural gas. But prices are expected to rise in 2025. So installing a heat pump offers long-term energy efficiency, savings and potential environmental benefits when powered by renewable sources like solar energy. Heat pump savings comparison Here's how much you could save with a heat pump based on your current fuel type, according to Rewiring America. Fuel type Annual estimated savings Delivered fuels (propane or heating oil) $840 Furnace or baseboard heat $780 Natural gas $60 How much does it cost to run a furnace and air conditioner? Heating and cooling costs vary, and your heating fuel also plays a major role. Natural gas, electricity, propane and heating fuel are the most popular heating fuels, but usage varies by region. Natural gas is the most common heating fuel, used in 47% of US households. It's the main source in the northeast, the Midwest and the West. Electricity is more common in the South where winters are milder. Generally, heating and cooling costs are more expensive in regions with extreme temperatures. For example, Massachusetts uses more heat in the winter than warmer climates like Florida. This means homeowners in colder climates spend more on heating, while those in hotter areas pay more for air conditioning. The type of heating fuel also impacts your costs. Natural gas tends to be cheaper than electricity or delivered fuels, like propane and oil. Here's an idea of how location and heating source affect costs based on EIA data. State Average natural gas usage (million British thermal units) Average annual heating cost Primary heating source Details Hawaii 30.3 $1,538 Minimal heating (6%) Warm climate, only 57% homes use AC Alaska 125.1 $1,509 Space heating (99% use) Cold climate, only 7% homes use AC North Dakota 94.3 $1,648 Natural gas Cold climate, higher heating costs due to natural gas use Florida 50.3 $1,654 Electricity Mild winters, high cooling costs due to AC use The different types of heat pumps Air-source heat pumps are the most common type, but you have other options to choose from based on your home and budget.
Telegraph
13-05-2025
- Automotive
- Telegraph
Workers could pay for heat pumps using salary sacrifice
Homeowners who ditch their gas boilers for a heat pump could pay back the cost of installation through salary sacrifice schemes under plans being considered by Ed Miliband. The proposal would allow salaried employees to repay their loan in monthly instalments that come out of their pre-tax income, saving money overall as they pay less towards national insurance and income tax. It would be similar to salary sacrifice schemes already in place for electric vehicles, which have been credited with boosting uptake among drivers. Mr Miliband, the Energy Secretary, is looking to expand the schemes on offer as a way of helping consumers with the similarly high costs of switching to a heat pump, according to energy companies. According to data provider MCS, the typical cost of installing an air source heat pump – the most common kind – is still about £5,500 after government grants are applied. On Monday, the Government did not rule out making salary sacrifice options available for heat pump purchases but it is understood there are no immediate plans being drawn up. The proposal would likely be more complicated to introduce than the equivalent EV scheme, however, given that heating systems are not typically leased. However, The Electric Car Scheme, which runs salary sacrifice schemes for client companies, said payments on a heat pump costing £14,760, spread over three years, could effectively be reduced from £410 to just £295 using the tax perk. Thom Groot, the chief executive of the company, said: 'We know that the government is seriously considering adding heat pumps to the hugely successful legislation covering salary sacrifice EVs and would welcome their introduction. 'Including these sustainable technologies would provide a meaningful boost to both our net zero goals and the economic growth that Rachel Reeves has made a central pillar of her policy.' Trevor Hutchings, the chief executive of the Renewable Energy Association, added: 'The growing uptake of EVs has been driven in many cases by the hugely successful salary sacrifice provision that makes them cheaper for consumers. 'Extending this to include renewable technologies like heat pumps and solar could provide the industry with a much-needed boost, one that industry estimates could translate into roughly 600,000 Heat Pump and renewable heating installations by 2030.' A government spokesman said: 'We are helping more people install heat pumps, including with our £7,500 grant – and supporting industry to develop financing models that can remove the upfront cost entirely. 'We are consulting on expanding the Boiler Upgrade Scheme to support new approaches, such as heat pump subscriptions, to help more households make the switch to cleaner heating in a way that works for them.'
Times
08-05-2025
- General
- Times
Are heat pumps financially worth it?
Having grown up in a draughty house, Phil Hunter is still not used to the sensation of all his rooms being the same temperature. Until he installed a heat pump and new radiators in his Victorian semi in Abingdon, Oxfordshire, in October, he had always taken it for granted that the way to stay warm was to crank up the boiler, turn up the living room radiators and close the doors. Now, however, he leaves them open. 'It just feels odd, when you've been brought up in the Eighties and Nineties,' he says. Whereas many gas boilers are designed to deliver quick bursts of heat on demand, his new heating system works for much of the day to keep the house at a steady 20C.
Times
07-05-2025
- Business
- Times
Heat pump subsidies ‘go to rich homes that would buy them anyway'
Heat pump subsidies could waste up to £900 million of taxpayers' money, according to the government's own analysis. An evaluation of the Boiler Upgrade Scheme published by the Department for Energy Security and Net Zero has found that two in five homeowners who have benefited from the subsidy, which now amounts to £7,500 per heat pump, would have probably installed one regardless of whether they received the money. With the total cost of the scheme over its lifetime expected to reach £1.9 billion, that suggests £880 million of taxpayers' cash will be spent encouraging people to do something that they would have done anyway, making the outlay what economists call a 'dead weight loss'. The report also found that the scheme disproportionately benefited wealthier Britons,
