How does a heat pump work?

The UK Government has taken important steps to promote the adoption of heat pumps, especially for single-family homes and build-to-rent (BTR) properties. These initiatives are carefully planned to reduce carbon emissions and promote adopting sustainable heating solutions. Here is an overview of the Government's efforts in this area. However, before that, let us understand how a heat pump works.

How does a heat pump work?

Heat pumps capture heat from the air, ground or water sources, which is passed through a heat exchanger. Within this process, a refrigerant gas, by increasing its temperature, absorbs the captured heat. The heated refrigerant gas is taken to a compressor, where pressure is applied to elevate its temperature further. Next the heated refrigerant passes through another heat exchanger, where the energy is transferred to the water flowing through radiators or underfloor heating systems and to the water stored in the hot water cylinder. This complex process facilitates the efficient distribution of heat throughout the home, ensuring optimal comfort levels while maximising energy efficiency.

The UK Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is a key Government initiative that provides grants to homeowners planning to switch from traditional boilers to heat pumps. Under this scheme, eligible recipients can receive grants of up to £7,500 for installing air-source heat pumps and biomass boilers in England and Wales. These grants help alleviate the initial heat pump installation costs, making these sustainable heating solutions affordable and within homeowners' reach.

Increase in grants for heat pumps

In September 2022, the UK Government increased the grant for heat pumps within the Boiler Upgrade Scheme by 50 percent. This decision incentivises homeowners to transition to heat pumps, expediting the shift from fossil fuels.

What is the Energy Company Obligation (ECO) and how does this help with heat pump installation?

The Energy Company Obligation (ECO) is another Government scheme to fund energy efficiency enhancements, including adopting heat pumps. Under the ECO, grants of up to £7,500 are available for installing heat pumps, with an additional £1,500 earmarked for eligible rural homes. This scheme is specifically aimed at assisting homeowners and renters in improving the energy efficiency of their residences, thereby reducing their energy expenditure.

Home Energy Scotland grant and loan

In Scotland, the Home Energy Scotland Grant and Loan program extends funding for energy efficiency enhancements, including adopting heat pumps. Through this program, grants of up to £7,500 are allocated for installing heat pumps, with an additional £1,500 provision for eligible rural homes. The programme also assists applicants by providing interest-free loans for homeowners. It helps them overcome the financial constraints of covering the upfront expenses associated with heat pump installations.

So, how do heat pumps help save money?

According to current energy prices, households utilising heat pumps, smart electricity tariffs, and removing gas meters can save more than a couple hundred pounds per year on average. However, it is important to note that the actual savings may vary based on the efficiency of the heat pump's operation. Modern and well-optimized heat pumps typically exhibit optimal performance at higher temperatures. Nevertheless, households seeking to reduce running costs further may want to explore cost-effective insulation options and consider swapping out some radiators for more efficient models.