A new study reveals that heat pumps could become a more affordable heating option than gas boilers within the next five years, thanks to falling costs and government incentives.
A new study comparing the lifetime costs of heat pumps and gas boilers in the UK reveals that heat pumps could become a more affordable option within the next five years. The research, led by Dr. Rosenow, found that the total cost of ownership (TCO) for a heat pump over a typical 15-year lifespan is £16,861, while a gas boiler costs £15,640, a difference of £1,221.Dr.
Rosenow, a respected expert who has advised prominent organizations like Ofgem, the International Energy Agency, and the European Commission, expressed surprise at the relatively small cost difference. He anticipates that heat pump costs will continue to decline in the coming years as the industry matures and becomes more efficient. This decrease is expected to be driven by falling purchase prices, improved installation methods, and advancements in technology. Dr. Rosenow believes that heat pumps could eventually cost the same as, or even less than, gas boilers.The study suggests that heat pump installation costs could drop by up to 25% by 2030 as more competitive options enter the market. This positive trend is supported by the government's existing £7,500 grant available to most heat pump buyers, which significantly reduces the upfront cost. However, Dr. Rosenow emphasizes that the current cost advantage of gas boilers is primarily due to the significantly lower price of natural gas compared to electricity. The UK's high electricity prices, driven by a higher burden of levies on electricity bills, exacerbate the cost difference. These levies, intended to fund renewable energy projects and improve energy efficiency, are disproportionately placed on electricity consumers.Experts propose that shifting these levies from electricity bills to general taxation could significantly reduce electricity costs, making heat pumps more competitive. Alternatively, they suggest reallocating the levies to gas bills, which would increase the cost of gas boilers and potentially narrow the price gap. Both options could incentivize the adoption of heat pumps as a more sustainable and cost-effective heating solution in the long run
Technology HEAT PUMPS GAS BOILERS ENERGY COSTS SUSTAINABILITY UK POLICY
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