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By Paul Homewood

Returning to heat pumps, the Telegraph referred to an analysis by the Energy & Utilities Alliance, a trade body. They also produced this analysis of upfront costs last November:


They came up with these installation costs for two typical homes:

Note that they include the £5000 government grant, so the real upfront cost is £20444 for the older semi, and £17837 for a modern detached. The difference assumes that the latter needs no further insulation.

I suspect that most houses will fall somewhere in the middle, needing some insulation, but not as much as the post war semi. In other words, around £20000.

We keep hearing government and renewable lobby claims that the cost of heat pumps is going to miraculously fall, but the tables above indicate that much of the cost relates to fitting new radiators and pipework, along with insulation. There is also the much higher installation costs to factor in for heat pumps, in comparison with gas boilers. It is generally accepted that heat pumps take much longer to install, leading both to high levels of disruption and higher labour costs.

When all this is taken into account, reducing heat pump manufacturing costs by even 50% will have little impact on the equation.


MAY 4, 2022