Gas boilers could be banned under proposal – but heat pump costs may rise to £35,000 | Personal Finance | Finance
In a report exploring the road to Net Zero, which was commissioned by former Prime Minister Liz Truss, a recommendation was made to ban gas boilers by 2040. Environmentally-friendly alternatives are being suggested in light of the cost of living criss which has seen energy bills rise substantially within the last year. One of the most popular technologies which is being adopted into homes is heat pumps, however experts are warning the overall cost of installation for this product could reach £35,000.
Heat pumps are equipment which are able to warm a home by transferring thermal energy from outside into circulating around a heating and hot water system.
Through the Government’s Boiler Upgrade Scheme, families are able to receive financial assistance to cover the costs of introducing these gas boiler alternatives to their home.
It should be noted only one grant can be awarded to each household and the scheme is currently available only in England and Wales.
As well as this, the amount offered through the Boiler Upgrade Scheme does not cover the full price of the heat pump or its installation.
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Here is a list of the Government funding available for those looking to install heat pumps or other energy-efficient technologies into their home:
- £5,000 grant for the cost and installation of an air source heat pump
- £5,000 grant for the cost and installation of a biomass boiler
- £6,000 off the cost and installation of a ground source heat pump, including water source heat pumps.
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However, experts have warned that some homes could see an installation bill of £35,000 if they introduce a heat pump into their home.
Stephen Hankinson, the managing director at Electric Radiators Direct, addressed affordability of heat pumps as a viable alternative to gas boilers.
He explained: “Typically, air heat pumps cost around £8,000 to install, while ground source pumps, which extract solar energy from the earth and convert it into power, can be closer to £35,000 for a 2-3 bedroom house.
“Even with Government help, the total cost to install could be around £3,000 for an air pump, and £30,000 for a ground pump so for many this is a big investment and something they’d only consider installing in a property they’re planning on living in for some time.
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“In terms of running costs, outgoings for a heat pump in an average-sized home could be around £1,725 a year in total.
“If you’re not able to install a heat pump or biomass boiler but are still looking to switch to a greener alternative, you could also choose to adopt a green tariff and pair this with electric heaters.”
Outside of heat pumps, there are other options available for people looking to move away from gas boilers.
For anyone looking to introduce energy-efficient technologies into their home, Britons are encouraged to look up the ERG rating for any boiler or equipment they install.
This is an acronym for ‘energy-related products’ and a regulatory rating designed to promote improvements in the efficiency and performance of heating and hot water products.
Boilers are awarded a rating between A to G, with ‘A’ being the best possible grade and the ‘G’ being the worst.
A boiler with a G rating is only 60 to 70 percent efficient which means up to 40 percent of the energy goes to waste.
According to experts from Boiler Central, families can save around £1,160 a year if they transition from a G-rated boiler to an A-rated one.
