Could installing a heat pump be the answer to rising energy bills?

Colder months ahead and a rising energy cap will mean increased bills this winter | John Devlin

This article contains affiliate links. We may earn a small commission on items purchased through this article, but that does not affect our editorial judgement.

Energy bills are heading in the wrong direction again, at the worst time of year - but heat pumps could bring costs down for many people

As of October, the energy price cap will rise by 10%, and this could mean some households will have to find another £550 per year to meet the cost of heating their homes.

Even the average home currently pays bills of £1,568 a year, and the price cap rise, which is limited by Ofgem energy price cap will see average bills rise by £149 to £1,717 from 1 October.

The news is likely to see families starting to look out for ways to save money as the colder months draw in. Some might switch their energy supplier, a few might install a smart thermostat, others might invest in better insulation.

But more and more people are choosing to walk away from their gas or oil-fired boilers and switch to heat pumps. Because it can save hundreds of pounds each year.

According to heat pump firm Aira the average home could save £500 per year on energy bills. And if you use or are planning to use solar panels, that saving could be significantly higher.

Heat pumps can be installed in most modern homes without any major alterations | Aira

That's because air source and ground source heat pumps don't actually burn anything. Instead they extract heat from the environment and transfer it into your home using electricity.

This means the carbon footprint of your heating system will be significantly lower, especially if you use a green energy tariff, and the cost can potentially be reduced even further if you can use your own renewable energy.

Aira says the cost of installing a modern heat pump system starts at £5,490 - that includes a government grant that covers £7,500 of the cost, and there's no VAT to pay at the moment.

That means it would cost around twice the price of a gas boiler installation, but not only are heat pumps cheaper to run, they tend to last longer. And Aira offers a 15-year warranty, which you're unlikely to find on a gas boiler. In fact, air source pumps are likely to still be in good order after 20 years.

Annual servicing is likely to cost a little more for an air source system though, according to Checkatrade.

Aira can send a specialist out to assess your home for free | Aira

There are other factors to consider too. Firstly and, perhaps most importantly, how well insulated is your house? If you live in a draughty old cottage, an air source heat pump might not be ideal.

Newer properties, or properties with modern insulation, will be more suitable for an air source system. If you're in any doubt, invite a specialist to give you a property assessment. This is something firms like Aira will do for free.

The specialist will let you know whether any other costs might be incurred in the installation. Some customers might need new radiators, for example, or a new water tank. And obviously, any upgrades to your insulation that are needed must be factored in.

Heating your entire home all year round requires a lot of energy, so it's never going to be a simple task. But technology has made it easier for us to do it in a much cleaner way, and a much cheaper way for many people.

Click here to use Aira's free calculator to see how much you could save.