Ground source heat pumps could earn homeowners without access to mains gas up to £3,000 a year in savings and income, according to new research by the Energy Saving Trust (EST).
A new paper provides fresh evidence that ground source heat pumps can generate significant financial and environmental benefits, while also showing that air source heat pumps could generate annual savings and income worth around £1,350.
The report shows that with new tariff levels set under the Renewable Heat Incentive at 7.3p/kWh for air source heat pumps and 18.8p/kWh for ground source heat pumps, payable for seven years, there is a compelling financial case for deploying the technology.
Heat pumps work by drawing heat from the ground or outside air, offering lower emissions than typical gas boilers. But the number installed in UK homes remains far lower than in Scandinavia or Germany, where the technology is increasingly popular.
Air source heat pumps typically cost between £8,000 and £10,000. Ground source heat pump costs vary with the amount of ground work needed, but the mid-point is around £14,000.
Performance of heat pumps was also high, with 80 per cent of users questioned by the EST saying they were satisfied and 77 per cent happy to recommend the technology to a friend, mainly because of its efficiency and relatively low running costs.
Energy and Climate Change Minister Greg Barker;
"High standard renewable heating technologies can save households significant money on their energy bills, and help to produce clean energy at the same time," he said. "I want to see more people reap the rewards that heating technologies have to offer.