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Last updated: 30 July 2024

Replace Your Boiler With A Heat Pump: Costs, Advantages & Savings

Replace Your Boiler With A Heat Pump Guide
  • Heat pumps are over 3 times more efficient than gas boilers, reducing carbon emissions and running costs.
  • You could save up to £440 per year by replacing a gas boiler with a heat pump.
  • Replacing a gas boiler with a heat pump costs between £2,400 - £49,000.

Is your boiler on its last legs? Or constantly needing repairs? The reality of a broken-down boiler can be daunting, but it also presents the perfect opportunity to upgrade to a sustainable, low-carbon heat pump. 

Replacing your boiler with a heat pump offers a range of benefits, from cost savings to reduced emissions, but there are many additional details you need to know. In this article, we’ll walk you through the entire process, including key differences between these systems, installation considerations, and all the costs involved (including important tips on savings through grants!). 

Ready to say goodbye to boiler drama for good and enjoy greener, easier home heating? Well, we can help! We know it’s challenging to find trustworthy installers, and it can take hours to scroll through reviews and wait for quotes, but that’s where we’ve got you covered. 

Fill in our quick and easy form, and we will connect you with qualified installers in your area, all from our fully vetted network of professionals. You will then receive up to 4 free, no-obligation quotes to compare so you can find the best price. 

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The differences between gas boilers and heat pumps

Traditional gas boilers have served us well for decades, but heat pumps now offer a revolutionary approach to home heating. Many things set these systems apart, and understanding how they differ is crucial before making the switch. 

Gas boilers burn fossil fuels to produce heat, which emits harmful carbon dioxide gases into the atmosphere. Although modern condensing boilers can perform with efficiency levels up to 94%, they still consume more gas than the heat they produce. 

In comparison, a heat pump uses renewable energy sources - air, water or geothermal (underground) - and can operate with efficiencies of approximately 300%, meaning you get 3x the heat output per unit of energy consumed. Due to the renewable nature of their energy source, heat pumps also don’t directly emit greenhouse gases like a gas boiler, which lowers their environmental impact. 

To get a better idea of the differences, we’ve outlined these and further points in the table below:

Difference Between Boilers and Heat Pumps
FeatureGas BoilersHeat Pumps
Fuel sourceNatural gas Three main sources, depending on heat pump type:
Air source (ambient air),
Water source (bodies of water),
Ground source (geothermal energy in the ground)
EfficiencyApprox. 90% - 94%Approx. 300%
Environmental impactBurning gas emits 0.215kg of carbon dioxide per kilowatt-hour, contributing to greenhouse gas emissions and global warming.While their heat source is renewable, heat pumps do require electricity to operate. However, this impact can be eliminated if a renewable energy source (such as solar panels) is used to provide green power.
Running costsConsidered cheap to run as gas is a lower-cost fuel than electricity, but this is subject to fluctuating energy prices.Despite higher initial installation costs, they tend to have lower running costs over time due to their higher efficiency levels. Pairing them with solar panels can further reduce running costs.
Installation and maintenanceThey are usually quick installations, lasting 1-3 days, and require annual maintenance to ensure safe and efficient operation.Can be complex to install, especially ground source heat pumps, which can take 2-5 days. They require less frequent maintenance, usually every 2-3 years. 
Performance and suitabilityThey produce high-temperature heat quickly, making them suitable for older, less insulated buildings. They are effective in providing rapid heating.Produce heat more slowly and at lower temperatures, working best with larger radiators or underfloor heating systems. They are best suited for well-insulated buildings and gradual temperature increases.
Lifespan10 - 15 years15 - 25 years

Advantages of heat pumps instead of gas boilers

Heat pumps offer a compelling alternative to traditional gas boilers, with several advantages that can benefit your wallet and the environment. Here's a breakdown of some key benefits:

Heat Pump vs Gas Boiler Advantages
  • Superior efficiency:
    As mentioned earlier, heat pumps excel in efficiency. They can produce up to 3x the heat for every unit of electricity they use. This translates to significant energy cost savings compared to gas boilers.
  • Environmentally friendly:
    Heat pumps don't directly burn fossil fuels, resulting in a much lower carbon footprint. For example, upgrading to an air source heat pump can save you up to 7,500kg of CO2 emissions. When combined with renewable energy sources like solar panels, you can create a fully sustainable heating solution.
  • Lower running costs:
    Due to their high efficiency, heat pumps can significantly reduce your energy bills. The potential savings can vary depending on location, climate, and usage but could be up to £440 per year, making the long-term cost benefits undeniable.
  • Multi-functionality:
    Some heat pump models offer dual functionality, providing heating and cooling capabilities. This eliminates the need for a separate air conditioning system, potentially saving on installation and operational costs.
  • Reduced maintenance:
    Heat pumps generally require less frequent maintenance compared to gas boilers. While annual servicing is recommended for boilers, heat pumps typically only need a check-up every 2-3 years.
  • Safety:
    Heat pumps eliminate the risk of gas leaks and carbon monoxide poisoning associated with gas boilers, creating a safer living environment.

What to consider when replacing a gas boiler with a heat pump

While heat pumps offer many advantages, it's important to consider some key factors before replacing your gas boiler. Here are some things to keep in mind:

Climate

Heat pumps work best in mild-moderate climates. In very cold regions, their efficiency can decrease as they work harder to extract heat from the cooler air. If you live in a cold environment, a hybrid system that combines a heat pump with a gas boiler might be a better option.

Home insulation

Heat pumps work best in well-insulated homes. Poor insulation forces the heat pump to work harder, reducing efficiency and potentially increasing running costs. Consider upgrading your home's insulation before installing a heat pump to maximise its benefits.

Existing heating system

The type of radiators or underfloor heating you have can impact compatibility with a heat pump. While most systems can work with heat pumps, some older radiators may require adjustments to function effectively at lower water temperatures.

Upfront costs

Heat pumps tend to cost more upfront to install than gas boilers, typically between £10,000 - £14,000. However, government incentives, such as the Boiler Upgrade Scheme, can help offset this cost with grants of £7,500 to support installation. In addition, the long-term energy savings potential can help you recoup the investment within 6 - 17 years. 

Space limitations

Depending on the type of heat pump you choose - air, water or ground source - you will need to consider the amount of outdoor space you have. For example, an air source heat pump will require approximately 3m x 2m of space for the outdoor fan unit, and a ground source heat pump will require a minimum land area of 700m2 for digging trenches or boreholes. 

Expert advice

Consulting with a qualified heat pump installer is crucial. They can assess your home's suitability for a heat pump, recommend the right system size, and provide estimates for installation costs.

It can be exhausting searching the web for reputable installers. Trawling thousands of reviews can leave anyone feeling confused and overwhelmed. Instead, avoid wasting hours of your time and let us help! 

Simply fill in our 30-second form and get connected with our network of vetted, professional installers in your area. You’ll receive up to 4 free, no-obligation quotes to compare so you can find a price to suit your budget. 

Just click the button below to get started.

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  • Quotes from local installers
  • Payment by finance available
  • Save £7,500 with BUS grant

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Cost to replace a gas boiler with a heat pump in the UK

When thinking about switching from a gas boiler to a heat pump, it’s important to understand the costs involved. There are some key points that will influence the overall price. These include:

  • Type of heat pump
    Generally, there are two types of heat pumps you might consider: air source and ground source. Water source heat pumps are also available, but they require very specific property types with direct access to a water body, so they are not always an option. 

    Air source heat pump prices are generally lower for installation, whereas ground source heat pumps are more expensive due to the groundwork/drilling involved.
  • Installation costs
    The complexity of your existing heating system and any necessary modifications will affect installation costs. For the installation alone, without supply costs, you can expect to pay between £350 and £1,700 for an air source and £3,000 to £30,000 for ground source heat pump installation.
  • Home size and heat demand
    The size and heat demands of your household will influence the size and power of the heat pump required. Larger properties with higher heat requirements will naturally cost more for both the unit and installation.

Here are some quick cost estimates to help you compare potential prices for replacing a boiler with an air source heat pump, a ground source heat pump or a gas boiler. 

Costs To Replace A Gas Boiler With Different Systems
Cost ElementsGas BoilerAir Source Heat PumpGround Source Heat Pump
Supply£500 - £3,500£2,400 - £12,350£13,200 - £19,000
Installation£1,000 - £1,500£350 -
£1,700
£3,000 - £30,000
Total costs£1,500 - £5,000£8,750 - £14,050£16,200 - £49,000

It's important to remember that these are estimated ranges. The actual cost for your specific situation can vary depending on the factors mentioned above. To get the most accurate picture,  consider getting quotes from qualified heat pump installers who can assess your home and provide a tailored estimate.

Are there any grants for replacing gas boilers with heat pumps?

Although the cost of installing a heat pump may seem high, there are grants and government incentives available to help. Depending on where you live in the UK, there are multiple grants you could benefit from. Since 2022, however, the main funding route has been the Boiler Upgrade Scheme (BUS).

We’ve included further details of this and other available schemes below:

Heat Pump Boiler Upgrade Scheme BUS

Boiler Upgrade Scheme (BUS)

This scheme provides upfront grants of up to £7,500 to help offset the cost of installing a new low-carbon heating system, including air source and ground source heat pumps. The BUS can significantly reduce the upfront investment required for a heat pump, making it a more attractive option for many homeowners. This scheme is only available however, until the end of March 2028.

ECO4 Heat pumps

Energy Company Obligation (ECO4)

This government-backed scheme requires large energy suppliers to help the most vulnerable households install energy efficiency measures. The ECO4 can help fund actions like improving insulation, repairing old boilers, and even replacing inefficient systems with low-carbon alternatives, including heat pumps. 

Heat Pump Warmer Homes Energy Scotland

Home Energy Scotland Grant and Loan

For those living in Scotland, Home Energy Scotland provides a similar initiative to support households with energy efficiency measures. This comes in the form of a grant of up to £7,500, with the option of an additional £7,500 in the form of an interest-free loan. This can cover the costs of installing a heat pump or any other ‘clean heating system’.

Heat Pumps Warm Home Wales

Warm Homes Wales

Similarly, if you live in Wales, the Welsh Government offers free support to install energy-efficient improvements in eligible homes - including upgrading to a heat pump.

Each of these grants and schemes has specific eligibility criteria, so it’s worth checking to see if you can benefit from any of this free support. In addition, it’s always worth speaking to a qualified heat pump installer to get the latest advice and information on available funding, as they can help support you through the application process.

Savings when replacing a gas boiler with an air source heat pump

While the upfront cost of installing a heat pump can be higher compared to a gas boiler, the long-term savings can be substantial. Firstly, since heat pumps use renewable fuels, you'll see a decrease in your reliance on gas. This can lead to impressive savings on your energy bills.

In addition, as heat pumps have high efficiency levels, often exceeding 300%, you will get more heat per unit of electricity they consume (up to 3 times!). In comparison, a gas boiler is usually around 92% efficient, meaning you actually lose 8% of the energy it uses. This difference can translate to significantly lower energy bills.

Latest figures suggest that replacing a gas boiler with an air source heat pump can save homeowners up to £166 per year. Combined with the potential lifespan of a heat pump (up to 15 years), the long-term savings can be substantial.

We’ve outlined below the estimated yearly savings when replacing your boiler with two types of heat pumps.

Annual Savings when Replacing a Boiler*
House SizeAverage Power/
Size Required
Air source heat pump savings**Ground source heat pump savings***
Small
1 - 2 bedrooms
8kWh£14£128
Medium
2 - 3 bedrooms
12kWh£182£440
Large
4+ bedrooms
17kWh£166£275
*When replacing an old G-rated gas boiler. **Heat pumps with a Coefficient of Performance (COP) between 3 and 3.5. *** COP between 4 and 4.5. Figures based on fuel prices as of April 2024.

Is replacing my gas boiler with a heat pump the right choice?

Saying goodbye to your ageing gas boiler and switching to a heat pump is a big decision, but the range of benefits is not to be underestimated. Not only do heat pumps help to save you money, year on year, but they are also exceptional for the health of the planet. 

Using a renewable energy source (extracted from the ambient air or naturally occurring heat underground), your heat pump can provide whole home heating without emitting harmful emissions. 

Heat pumps are so efficient and effective that even the Government is encouraging us to use them. Grants like the Boiler Upgrade Scheme can significantly reduce the cost of installation, with a grant of £7,500, making it even more affordable to make the switch. 

If you’re ready to start saving money and reducing your carbon footprint, we’re here to help! Using our quick and easy form, we can help you avoid the stress of endless research, trawling through reviews, and praying your installer is genuine. 

Instead, get connected with our network of qualified, vetted installers from your area. Receive up to 4 entirely free quotes (with no obligations attached) and compare prices to find the best deal for your budget.

Click the button below to get started!

Get your best deal
Quickly compare 4 FREE quotes
  • Quotes from local installers
  • Payment by finance available
  • Save £7,500 with BUS grant

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We will get you the best deal

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