Investing in an Air Source Heat Pump vs an Ultra-Efficient Boiler: Practical Options for Your Budget

Investing in an Air Source Heat Pump vs an Ultra-Efficient Boiler: Practical Options for Your Budget

Mar 15, 2025 | Sustainable Energy

As experts in sustainable and high-performance home heating systems, we speak with an increasing number of homeowners interested in an air-source heat pump. This is often because their existing boiler needs replacing or has reached a stage where it simply isn’t working efficiently anymore.

Air source heat pumps are generally better suited to the vast majority of homes than a ground source heat pump – primarily because the latter requires a large area of land for installation and is more appropriate for bigger properties with ample outdoor space.

While heat pump systems have many benefits, it’s also important to review the right options. An A+++ rated gas boiler is far more efficient than an outdated model, and there are plenty of scenarios where an air source pump wouldn’t be the best bet given the cost of home improvements that are often necessary to augment insulation and heat retention.

Both options reduce energy consumption, lower utility bills and provide a great way to heat your home and water – and we’ve outlined some of the key considerations below to ensure you can make an informed decision.

The Pros and Cons of Air Source Heat Pumps vs Top-Rated Gas Boilers

Heat pumps have become a viable alternative to gas boilers. The air-sourced models we’re talking about extract ambient heat from outdoor air—even during cold weather—and use that via a heat exchanger to provide hot water and central heating.

The biggest advantages of air-source heat pumps relate to the following factors:

  •   Efficiency: Heat pumps have ratings of between 300% and 400%, in contrast to the 90% to 94% efficiency available from most of the high-end gas boilers on the market. This is because gas boilers always lose a little heat through the flue, whereas a heat pump can generate around three or four times more heat for each kW of energy use.
  •   Running costs: The higher efficiency of a heat pump means you’ll likely see your utility bills drop slightly. A caveat here is that current electricity prices—which are higher than gas—mean the differential isn’t perhaps as high as it has been previously, with the averages at the moment equating to a saving of about £150 for an average household and home.
  •   Sustainability: Heat pumps utilise free and abundant ambient heat from the air. However, it’s important to clarify that they still rely on electricity to power the heat pump unit, so although they are more environmentally friendly, they aren’t totally running cost-free.
  •   The lifespan of the pump: Better-quality heat pump models are expected to last 20 or more years, compared to around 10 to 15 years for a newly fitted boiler. It is, though, worth checking warranties because heat pumps can come with warranties for up to five years, whereas some boilers come with extended guarantees over a longer period.

A green, clean energy and low carbon footprint method of heating your home is an aspiration, but we recommend factoring in the practicalities and cost elements alongside the sustainability aspects.

Comparing the Costs of Gas Boilers and Air Source Heat Pumps

One area where high-efficiency modern boilers outperform air-source heat pumps is purchase costs. Although there are schemes that provide grants and discounts towards the cost of upgrading your central heating, a heat pump is unquestionably more expensive.

While prices depend heavily on multiple variables such as the size of your property, the number of occupants, and your heating and hot water demands, you’ll usually find that a top-rated gas boiler will cost around £3,000, with cheaper models available for less, compared to budgets of between £7,000 and £13,000 for an air source heat pump.

Of course, if you qualify for a grant or government incentives, that might mean the cost of either heating solution is fairly comparable, and as always, we’d suggest giving the Pinnacle Works team a call.

Many homeowners end up overpaying for a heat pump or boiler that is far too large and costs more to buy and run than it should, which is why independent advice is valuable.

Why Extensive Improvements Might Be Necessary Before Fitting a Heat Pump

We touched on the ‘hidden’ costs of a heat pump earlier, which is why low-carbon heating is often better suited to newer builds. To work as efficiently as possible, heat pumps need your home to have a high energy efficiency performance rating.

Older homes, particularly those that haven’t had any recent upgrades, can require retrospective work to improve several aspects of the insulation, which can add a fairly large amount to your budget. For example:

  •   Good loft and wall insulation are essential because, without it, the heat produced by the air pump will dissipate quickly.
  •   If you have older windows or double glazing that has stopped working properly, you may need to consider replacing them to avoid heat escaping through the glass.
  •   Properties with basements may need to invest in floor insulation or underfloor heating to prevent rapid heat loss, and most homes will need air sealing if there are any drafts around windows, doors and other areas.

Insulation upgrades are important because heat pumps heat the water to a lower temperature than a boiler. Hence, any issues with insulation and heat retention mean it could be almost impossible to retain a comfortable inside temperature.

Generally, an air source heat pump is a brilliant upgrade. It can augment the market value of your home and, over a certain number of years, provide real returns in energy savings. However, if you’re not in a position to consider these other improvements, a top-rated boiler remains a great alternative.

How to Decide Whether an Air Source Heat Pump is Right for Your Home

Heat pumps represent a new way of heating your home and water. However, they aren’t universally suitable alternatives to a highly rated boiler.

That could be because a renewable energy heating system isn’t ideal at this point in time, you don’t have the space to install the outdoor unit, or you don’t have the time, budget, or inclination to invest in the type of home improvements heat pumps need to perform at their best.

If you need to make a quick decision and want to avoid spending thousands on a central heating system that isn’t the best fit for your needs, you are welcome to contact the Pinnacle Works team at any time.

Benefits of Ground and Air Source Heat Pumps

Benefits of Ground and Air Source Heat Pumps

Mar 24, 2022 | Sustainable Energy, Construction

There’s no escaping soaring energy prices, increasing living costs, and the fact that our properties are becoming ever-more expensive to heat, cool and run. Ground and air source heat pumps have been around for a decade, and are coming into their own as alternative heating devices with excellent benefits for the environment, and your bank balance.

Pinnacle Works is passionate about renewable energy and has extensive experience installing high-performance pumps that are fast, reliable, and economical.

What are Air and Ground Source Heat Pumps?

Many homeowners are unfamiliar with these eco-friendly heating appliances, but the concept is simple:

  • Pumps absorb environmental heat, converting it into a liquid.
  • The fluid is then compressed to a higher temperature.
  • That heat is used for central heating and to produce hot water.

The core difference between the two heat pumps is where the heat originates. As the names suggest, air pumps absorb heat from the air, whereas ground heat pumps rely on thermal heat in the ground. We’re often asked how this works, particularly given that we don’t enjoy the warmest climates in the UK! Even when it feels cold, quality heat pumps can still extract heat, and remain operational at sub-zero temperatures, with the ideal tolerance being 25 °C to -5 °C.

Without getting into the technicalities, a ground source heat pump utilises a network of underground pipes (called a loop) with the pump at ground level. Air source heat pumps absorb warmth from outside air using a liquid refrigerant. The compression and condensation process releases stored heat to warm your home and water.

Air Source Heat Pumps

Although the technology behind heat pumps is advanced, the installation is relatively straightforward.

Fitting an air heat pump is quite quick provided you work with a qualified installer, and the pumping and controls are similar to those used on your existing boiler. Ground source heat pumps are a little more involved because we lay a network of piping underground, which requires a certain amount of space.

If you’re interested in comparing these low-cost heating solutions, we can arrange a survey to offer advice about the suitability of each option.

We can install a heat pump in almost any home, but the right choice for you will depend on a few variables:

  • Insulation is key, and the pump must be correctly insulated to ensure it operates efficiently and doesn’t experience heat loss.
  • Most clients who opt for a ground source pump are either not reliant on the mains gas network or have a wider outdoor space.
  • Pumps can be fitted in properties of all ages, but renovated homes and new-builds can present higher energy efficiency ratings, making them ideal for an eco-friendly heat pump.

Average costs sit at around £7,000 – £13,000 for an air source heat pump, and between £14,000 and £19,000 for a ground source pump, with the cost differential owing to the external groundworks.

The investment balances out because a ground pump is a more efficient renewable energy source and produces greater cost savings and lower utility bills. It’s also worth noting that the Domestic Renewable Heat Incentive (RHI) provided higher financial incentives for ground source heat pumps. However, the current application round has closed and been replaced with a new scheme, which we’ll explain shortly.

The Benefits of Ground and Air Source Heat Pumps

The biggest advantage of a renewable heat pump over a conventional boiler is that it will undoubtedly reduce your household costs. A heat pump is significantly cheaper to run than any electrical heating system oil boiler and most gas boilers. Either type of pump is fully automated, so they have an advantage over biomass boilers, requiring much less work.

Other benefits of replacing an older boiler with a heat pump include:

  • Superior energy efficiency, with performance ratings of 200% to 400% higher than a standard heating system.
  • A substantially lower carbon footprint, with no emissions other than those at the point of electricity production – the compressors use very little electricity and non-harmful refrigerants that don’t impact the environment.
  • Condensation prevention, with automatic dehumidifying properties.
  • Improved air quality – the heat pump doesn’t burn anything to produce the warmth, so no fumes or smoke filter into the air.

Heat pumps are ideal for families with allergies, as the circulation process purifies the air and removes spores, odours, smoke, particles, and dust.

How Much Money a Heat Pump Could Save You

Much depends on your energy consumption and property, but you could stand to save:

  • Over £1,000 a year compared to electric heating systems.
  • Up to £570 a year if you use an LPG heating system.
  • Around £30 a year against oil or gas boilers.

Of course, with the energy price cap increasing this month by 54%, those statistics may soon multiply.

Government Heat Pump Grants

We mentioned the incentive scheme earlier, which closed on 31st March 2022 – but has been replaced with a more straightforward initiative.

This programme offers a £5,000 grant, or £6,000 towards the cost of a ground source heat pump, and covers any part of the supply or installation cost. The government won’t be accepting direct applications, but Pinnacle Works can apply to Ofgem (the energy regulator) on your behalf, securing a voucher confirming the grant value.

Due to launch this month, these grants are part of a £3.9 billion programme to encourage all households to switch to a low-carbon alternative by 2035.

Exterior Ground Source Heat Pump Case Study

If you’re looking at replacing an old boiler or inefficient heating system, an air or ground source heat pump is an outstanding option, providing long-term, low-carbon and cost-effective heating.

One of our recent commissions involved the installation of an exceptional ground source heat pump housed in a pump house with bespoke fitted oak doors. This example shows the aesthetic achievable, with internal ply lining and professional quality insulation to provide the ultimate energy-saving solution, with maximised pump efficiency. With subtle touches, such as bat boxes in the rafters to encourage local animals to relocate to the pump house, you can see the finished project via our social media HERE.

For more information about whether a renewable heat pump would be right for your property or to enquire about the best option and apply for a government grant, please contact Pinnacle Works at your convenience. Our skilled teams work closely with every client to ensure your finished pump meets every expectation, creating future-proof eco-homes that are as cost-effective as possible.