Understanding Heat Pumps: Are They Worth the Investment in the UK?

As the UK shifts towards net-zero carbon targets and we move away from fossil fuel heating, heat pumps are becoming a hot topic. They’re often presented as the future of home heating — but are they really worth the investment, especially in the UK’s climate and housing stock?

In this article, we’ll explain how heat pumps work, what makes them energy efficient, and whether they’re a smart choice for your home.

What Is a Heat Pump?

A heat pump is a low-carbon heating system that transfers heat rather than generating it by burning fuel. Think of it like a fridge in reverse: it extracts heat from the outside air or ground and transfers it into your home.

There are two main types used in domestic properties:

• Air Source Heat Pumps (ASHPs): Extract heat from the outside air.

• Ground Source Heat Pumps (GSHPs): Extract heat from the ground via buried pipes.

  
  

ASHPs are more common in the UK because they’re cheaper to install and suitable for a wide range of properties.

Why Are Heat Pumps Energy Efficient?

Unlike gas boilers, which create heat by burning fuel, heat pumps move heat using electricity — and they do it very efficiently. For every 1 kWh of electricity used, a heat pump can generate 3 to 4 kWh of heat. This makes them 300–400% efficient compared to the 90–95% efficiency of modern gas boilers.

Because they run on electricity, heat pumps also become greener as the UK’s electricity grid decarbonises.

Are Heat Pumps Suitable for UK Homes?

The UK’s relatively mild climate makes air source heat pumps a good option. However, suitability depends on the property. Heat pumps work best when:

• The home is well insulated and airtight

• Low-flow heating systems (e.g. underfloor heating or large radiators) are in place

• There’s enough space outdoors for the external unit

  
  

They are particularly well-suited to new builds or deep retrofit projects, but they can be fitted in existing homes with the right preparation.

The Costs: Upfront vs Long-Term

Upfront Costs

• Air Source Heat Pump installation: £10,000–£13,000 (average)

• Ground Source Heat Pump installation: £18,000–£30,000 (including groundworks)

  
  

Grants Available

• The Boiler Upgrade Scheme (BUS) offers up to £7,500 towards the cost of a heat pump.

  
  

Running Costs

If installed in a well-insulated home, a heat pump can be cheaper to run than a gas boiler, particularly if you’re on a time-of-use tariff or combine it with solar PV.

Pros & Cons of Heat Pumps

✅ Benefits

• Very energy efficient (300–400%)

• Lower carbon emissions

• Eligible for government funding

• Safer than gas (no combustion)

• Quiet operation

  
  

⚠️ Challenges

• High initial cost

• May require upgrades to insulation or radiators

• Less effective in poorly insulated homes

• Outdoor space needed for ASHP units

So, Are Heat Pumps Worth It?

If your home is well insulated and you’re planning to stay put, a heat pump can be an excellent investment. They’re future-proof, low carbon, and could save you money in the long term.

For older or less efficient homes, a heat pump can still work — but you’ll likely need to make fabric improvements first. That’s why it’s vital to take a whole-house retrofit approach and design a system that considers your home’s unique needs.

Final Thoughts

Heat pumps are not a one-size-fits-all solution, but they are a big step in the right direction for UK home heating. When installed as part of a PAS 2035-compliant retrofit, they can be a powerful way to cut emissions, improve comfort, and future-proof your property.

At Target Green, we design bespoke retrofit strategies that include heat pump feasibility, fabric upgrades, ventilation and more.

Thinking about switching to a heat pump? Get in touch for expert guidance.