News

Up to £27,550 cost per household for heat pumps not a Labour Party future for low carbon home heating says GMB London

Download as PDF

GMB London call on Labour Party to study policy implications of new official report showing heat pumps to replace gas for home heating costs up to £27,350 per household

These huge costs, plus the additional costs of the expansion of electricity supply needed to run them, should drive the Labour Party to conclude that this is not the way to go for low carbon home heating says GMB London 

GMB London Region, the union for gas workers, called for the Labour Party under the leadership of Keir Starmer to study the policy implications of a new official report showing that the costs of heat pumps systems to replace gas boilers for home heating are up to £27,350 per household.

The Department for Business, Energy and Industrial Strategy (BEIS) recently published a report, prepared for them by Delta-ee, which provides a detailed comparison of the full costs of installing different types of heating systems.
See link to the BEIS report:  The Cost of Installing Heating Measures in Domestic Properties

A Delta-ee Report for the Department for Business, Energy and Industrial Strategy, BEIS Research Paper Number: 2020/028

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/913508/cost-of-installing-heating-measures-in-domestic-properties.pdf

An analysis of the report by the recently formed Gas Users Organisation concluded as follows:

“An 8kW air source heat pump (ASHP) fully installed including fittings, buffer tank, cylinder and controls, but excluding the heat distribution system would cost £ 8,750. In reality, it would be necessary to fit new radiators, and a 16kW ASHP fully including a heat distribution system would cost £21550.”

“Ground Source heat pump systems cost more,  for example, a 12kW GSHP fully installed including buffer tank, cylinder, groundworks, controls and the heat distribution (underfloor heating downstairs and radiators upstairs) system would cost £27350.”

“Heat Pumps are a very efficient form of electric heat, but a report by Element Energy for the Westminster government concluded that, even if the costs of heat pumps fell considerably, their lifetime costs would always be higher for consumers than gas. There is also a question mark about the huge expansion of electricity capacity required and whether that would be sourced from renewables.”

“This report clearly shows that Gas central heating is by far the cheaper option for households”.
See notes to editors below for a recent press release from the Gas Users Organisation and contact details for them.

Gary Pearce, GMB London Region Energy Officer said:

“it is essential that the Labour Party under the new leadership of Keir Starmer study the policy implications of this new official government report on the costs per household of replacing gas for home heating with alternative systems using heat pumps and powered by electricity.

The costs of the heat pumps systems vary from £21,550 for air pumps and £27,350  ground source heat pumps.

These huge costs, plus the additional costs of the expansion of electricity supply needed to run them, should drive the Labour Party to conclude that this is not the way to go for low carbon home heating.” 

GMB London consider that existing central heating systems should be maintained and powered by natural gas until such time as it can be replaced by zero carbon hydrogen at reasonable prices. This GMB London view has been endorsed by GMB Congress. 

End

Contact: 

Gary Pearce, GMN London Region Energy Officer, 078 5003 6952

GMB London Region Press Office 079 7001 9643

 

Notes to editors: 

Recent press release from the Gas Users Organisation.

UK government report highlights the lower up-front costs of gas central heating, says the Gas Users Organisation, which promotes the interests of the UK’s 24 million households who heat their homes using gas.

The Department for Business, Energy and Industrial Strategy (BEIS) recently published a report, prepared for them by Delta-ee, which provides a detailed comparison of the full costs of installing different types of heating system.

Andrew Newman, Technical Director of the Gas Users Organisation explains:

“There is currently a debate about the best way to move to low carbon heating for our homes. This report usefully compares different technologies, but also recognises that it is a much lower cost option to swap an existing boiler with a like-for-like replacement, rather than a complete change of system.

“One of the most commonly advocated alternatives to gas central heating is to switch to a “heat pump.” Heat pumps are not new technology, but most people in Britain have limited awareness of them.”

“This report shows that a like-for-like replacement of a combi boiler by a local installer can cost as little as £2250, while a new build gas central system including new radiators, putting in the gas supply line and controls would be £5400.”

“In contrast, an 8kW air source heat pump (ASHP) fully installed including fittings, buffer tank, cylinder and controls, but excluding the heat distribution system would cost £ 8,750. In reality, it would be necessary to fit new radiators, and a 16kW ASHP fully including a heat distribution system would cost £21550.”

“Ground Source heat pump systems cost more,  for example, a 12kW GSHP fully installed including buffer tank, cylinder, ground works, controls and the heat distribution (underfloor heating downstairs and radiators upstairs) system would cost £27350.”

“Heat Pumps are a very efficient form of electric heat, but a report by Element Energy for the Westminster government concluded that, even if the costs of heat pumps fell considerably, their lifetime costs would always be higher for consumers than gas. There is also a question mark about the huge expansion of electricity capacity required and whether that would be sourced from renewables.”

“This report clearly shows that Gas central heating is by far the cheaper option for households”

 NOTES FOR EDITORS

The Gas Users Organisation C.I.C. is a recently formed community interest company established to operate for the benefit of the 24 million households who use domestic gas, and for individual engineers registered with Gas Safe.

https://www.gas-users.org/

Contact: Andrew Newman CEng MIET MIGEM,

Technical Director, on 0754 0859 227

Or email Andrew.newman@gas-users.org 

BEIS report:  The Cost of Installing Heating Measures in Domestic Properties

A Delta-ee Report for the Department for Business, Energy and Industrial Strategy, BEIS Research Paper Number: 2020/028

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/913508/cost-of-installing-heating-measures-in-domestic-properties.pdf

Also refer to: BEIS public attitudes to heat

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/913541/transforming-heat-public-attitudes-research-report.pdf

Background on heat pumps

https://www.gas-users.org/post/new-heat-pump-charter-is-welcome

QUOTES FROM THE REPORT

Aims of the report:

  • To provide BEIS with up to date information on the installed cost (excluding VAT) of a range of domestic heating measures, including heating controls. This includes providing a detailed breakdown of equipment costs (e.g. heating system, hot water tank, ancillary equipment, radiators) for the different types of heating systems that can be categorised as a single heating measure.
  • Present the fully installed cost of different heating systems as a function of the heating measure capacity.
  • Present high, low and central estimates for the fully installed cost of each heating measure category.

The core part of the data collection process involved detailed interviews with installers. Delta-ee also had conversations with four large product manufacturers covering electric heating, heat pumps and boilers. There were two online surveys to installers, but no responses received to the online surveys from heat pump installers.

    1. The specific cost categories examined were:
    • Capital cost of heating device (no ancillary equipment)
    • Capital cost of ancillary equipment (e.g. pipework and valves)
    • Capital cost of heat distribution system (e.g. radiators, underfloor heating, etc.)
    1. Highlighted example costs:

Gas boilers

24kW combi for combi direct swap by local installer/plumber (including labour and fittings but excluding controls and heat distribution system)

£2,250

Replacing an old 24kW non-combi with a 30kW combi by regional installer (including labour, fittings, removal of old equipment but excluding controls and heat distribution system) 

£3,660

New build or full retrofit of first time central heating, 24kW combi by regional installer (including new radiators, putting in gas supply line and controls. High cost estimate of fittings used) 

£5,400

 

Air Sourced Heat Pumps

8kW air source heat pump (ASHP) fully installed including fittings, buffer tank, cylinder and controls, excluding the heat distribution system

£8,750

16kW ASHP fully installed including fittings, large buffer tank and cylinder, advanced controls and heat distribution system (new in larger house)

£21,550

16kW ASHP fully installed including buffer tank and cylinder and heat distribution system (retrofit system with upgraded existing radiators)*

£14,900

While upgrading existing radiators is much cheaper than installing a new heat distribution system, the issue with just upgrading the existing radiator network is that the time to heat a room will still take longer than if a new system of underfloor heating (downstairs) and radiators (upstairs) were used. In some cases this may translate into an installer recommended a homeowner to install a larger capacity heat pump to compensate for this slower heat time. 

 Ground Sourced Heat Pumps

8kW ground source heat pump (GSHP) fully installed including small buffer tank and cylinder but excluding ground works and excluding controls, excluding the heat distribution system 

£13,200

12kW GSHP fully installed including buffer tank and cylinder and groundworks, excluding the heat distribution system

£20,850

12kW GSHP fully installed including buffer tank, cylinder, groundworks, controls and the heat distribution (underfloor heating downstairs and radiators upstairs) system                            

£27,350