How much does an ASHP cost to run?

Energy consumption is highly individual, depending on factors like property size, insulation, occupancy, location, and indoor temperature. Annual running costs can vary, but based on OFGEM’s 2024 price cap, a typical home will range from £600 to £1500.

With heat pumps, the higher the SCOP, the lower the running costs—so system design is key. An MCS-compliant proposal or heat loss calculation will give you projected running costs, but if you’re switching from an existing boiler, a heat pump running at an average SCOP of 3.5 should cost about the same using peak unit rates.

However, heat pumps really shine in their versatility. For example:

– Using time-of-use tariffs to heat your home and hot water during off-peak hours.

– Taking advantage of discounted rates on heat pump consumption.

– Storing power with battery storage purchased during off-peak times for use at peak hours.

– Using solar PV generation, especially for heating hot water.

Here’s something to consider: heating your hot water with an overnight rate costs around a third of the price of gas, leading to potential significant savings. Plus, if you have your gas meter removed, you’ll no longer pay the gas standing charge, which could save you around £130 a year.

In summary, with careful design and smart energy management, heat pumps offer not only environmental benefits but also long-term financial savings.