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- Setting up a heat-pump system: examples of cost and payback
Setting up a heat-pump system: examples of cost and payback
A look at the typical costs and payback of different heat-pump systems.
Back to: A detailed look at heat pumps and how they work
Worked example: 100 kW system
Installation prices
- Ground source (boreholes) circa: £130,000–£140,000
- Closed loop water source circa: £80,000
- Open loop water source (boreholes) circa: £95,000–£110,000
Table 1. Heat pump investment performance per annum – 100 kW system
|
Heat used (kWh) |
220,000 |
|
Estimated running cost |
£7,300 |
|
Equivalent in gas |
£8,400 |
|
Total running cost saving |
£1,100 |
|
kWh eligible for RHI Tier 1 |
131,400 |
|
Tier 1 (8.84p per kWh) RHI Payment |
£11,615 |
|
kWh eligible for RHI Tier 2 |
88,600 |
|
Tier 2 (2.64p per kWh) RHI Payment |
£2,339 |
|
Total RHI Payment P.A |
£13,770 |
|
Total annual benefit |
£14,870 |
In this example, the total RHI payment over 20 years (no adjustment for inflation) would be £275,400.
Notes
Estimates exclude groundworks, power supply, heating-system alterations and control-system upgrades. All prices exclude VAT.
Assumptions:
- 2,200 heat-pump operating hours
- 55˚C flow temperature
- 10p/kWh electric
- 5p/kWh gas boiler
- 80% boiler efficiency
The worked example uses 2015 prices, therefore please check the input costs and tariff against what is currently available.
Worked example: 500 kW system
Installation prices
- Ground source (boreholes) circa: £500,000–£600,000
- Closed loop water source circa: £320,000–£350,000
- Open loop water source (boreholes) circa: £320,000–£380,000
Table 2. Heat pump investment performance per annum – 500 kW system
|
Heat used (kWh) |
1,100,000 |
|
Estimated running cost |
£37,000 |
|
Equivalent in gas |
£42,350 |
|
Total running cost saving |
£5,350 |
|
kWh eligible for RHI Tier 1 |
657,000 |
|
Tier 1 (8.84p per kWh) RHI Payment |
£58,078 |
|
kWh eligible for RHI Tier 2 |
443,000 |
|
Tier 2 (2.64p per kWh) RHI Payment |
£11,695 |
|
Total RHI Payment P.A |
£69,773 |
|
Total annual benefit |
£75,123 |
In this example, the total RHI payment over 20 years (no adjustment for inflation) would be £1,395,460.
Notes
Estimates exclude groundworks, power supply, heating-system alterations and control-system upgrades. All prices exclude VAT.
Assumptions:
- 2,200 heat-pump operating hours
- 55˚C flow temperature
- 10p/kWh electric
- 5p/kWh gas boiler
- 80% boiler efficiency
The worked example uses 2015 prices, therefore please check the input costs and tariff against what is currently available.
Worked example: 1 MW system
Installation prices
- Ground source (boreholes) circa: £800,000–£900,000
- Closed loop water source circa: £400,000–£500,000
- Open loop water source (boreholes) circa: £320,000–£400,000
Table 3. Heat pump investment performance per annum – 1 MW system
|
Heat used (kWh) |
2,200,000 |
|
Estimated running cost |
£73,300 |
|
Equivalent in gas |
£84,700 |
|
Total running cost saving |
£11,400 |
|
kWh eligible for RHI Tier 1 |
1,314,000 |
|
Tier 1 (8.84p per kWh) RHI Payment |
£116,158 |
|
kWh eligible for RHI Tier 2 |
886,000 |
|
Tier 2 (2.64p per kWh) RHI Payment |
£23,390 |
|
Total RHI Payment P.A |
£139,548 |
|
Total annual benefit |
£150,948 |
In this example, the total RHI payment over 20 years (no adjustment for inflation) would be £2,790,960.
Notes
Estimates exclude groundworks, power supply, heating-system alterations and control-system upgrades. All prices exclude VAT.
Assumptions:
- 2,200 heat-pump operating hours
- 55˚C flow temperature
- 10p/kWh electric
- 5p/kWh gas boiler
- 80% boiler efficiency
The worked example uses 2015 prices, therefore please check the input costs and tariff against what is currently available.
Useful links
Information on the types of heat-pump systems
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