Hot news: Heat pumps outshine gas in the long run

That’s the main finding of our groundbreaking new study which sheds light on the financial viability of investing in modern energy systems. The study found that investing in heat pumps combined with solar panels is often cheaper in the long run than buying and using a new gas heating system, quicker than people think, in 11 years.

The most significant finding of the study is that switching to a heat pump and a solar system can result in lower costs than installing a new gas heating system after a decade. While this timeframe may surprise many, it highlights the potential for significant long-term savings by changing the way we heat and power our homes.

This research project between E.ON and RWTH Aachen University in Germany compared the buying and operating costs of three different combinations of sustainable energy solutions: heat pump, heat pump plus solar panels, and heat pump plus solar and battery storage. These solutions were examined across various house types, family sizes, and geographical locations. Results showed that for a typical 1990s detached house, the combination of a heat pump and solar system proved to be a more cost-effective option compared to a traditional gas heating system. These findings provide important evidence on the viability of investing in modern sustainable energy systems.

One key factor contributing to the cost-effectiveness of heat pumps and solar systems is the availability of state subsidies. With subsidies of up to £7,500 for heat pump installations in the UK, the transition to these sustainable energy solutions becomes more financially attractive for homeowners. This financial support helps bridge the gap between the initial investment and the long-term savings, but the upfront cost can still be a deciding factor for many.

In a pioneering government funded pilot scheme in the North of England we’re working to promote greater uptake of these low carbon heating solutions by removing the upfront costs. Working with Heatio and Energy Systems Catapult we’re helping homeowners install heat pump, solar and battery solutions, by offering the technology, installation and service in a pay-monthly contract similar to mobile phone deals, which could cost as little as £150 a month over a 20-year term.

The benefits for the climate are also considerable. The study revealed a combination of heat pump, solar and battery system could reduce CO₂ emissions by around two thirds compared to traditional gas heating – both for a 1990s terraced house and a detached house built in 2005. Looking ahead over the next 20 years, CO₂ savings could be as much as 84% in a 1990s terraced house and 86% lower for detached house built in 2005.

Despite these promising results there is still a lack of public awareness of the long-term cost benefits of heat pumps and solar energy, with many people underestimating how quickly these solutions pay off. A recent survey of 5,000 people* found a third of respondents believed heat pumps and solar would only be cheaper after 16 to 20 years, while more than a fourth were uncertain. Only a fifth of respondents provided the correct estimate of 11 years. This highlights the knowledge gap that many consumers face when considering such home energy transitions.

By providing clear, data-backed studies like these our aim is to educate homeowners and help them make informed decisions about their energy choices while raising awareness of the benefits of sustainable energy solutions and pave the way for a greener and more cost-effective future in home heating.