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Last updated on November 18th, 2024

Heat pump vs air conditioner cost: Everything you need to know

We compare air-source heat pumps with traditional air conditioning units, including the pros and cons, and cost of each, helping you to make the best choice for your home.

Heat pump vs air conditioner cost comparisons

Wondering about the cost differences between a heat pump vs an air conditioner? Look no further!

Traditionally, air conditioners and central heating have been the go-to options for cooling and heating our homes respectively. However, with the rise in energy-efficient technology, heat pumps have emerged as a good alternative.

Both heat pumps and air conditioners have made big advancements in energy efficiency and technology, offering improved comfort and reduced environmental impact.

Here, we compare air-source heat pumps with traditional air conditioning units, including the pros and cons of each and the all-important costs.

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Is a heat pump more expensive than an air conditioner?

This depends on various factors and the specific requirements of your home.

  • While heat pumps may have higher upfront costs and be slightly more expensive to install, they offer significant long-term savings through energy efficiency and dual functionality
  • On the other hand, air conditioners have lower upfront costs but can result in higher running expenses and the need for a separate heating system

Air source heat pump unit outside a red bricked home for Heat pump vs air conditioner cost

Heat pump vs air conditioner – running cost differences

The running costs of a heat pump vs an air conditioner depend on several factors, including the system’s efficiency and your current energy prices, usage patterns, and climate conditions.

However, both types of systems are seen as highly efficient because of the way they operate – they transfer heat rather than generate it.

Heat pump cost estimates

The cost of installing a heat pump varies depending on factors such as the type of heat pump, the size and capacity of the system, the complexity of the installation, and any additional requirements specific to your property.

Heat pump unit costs

The cost of most heat pump units themselves ranges from £2,000 - £4,000 for the supply and installation of an air-to-air air source heat pump with a heating capacity of 5kW.

For comparison, you’re looking at around £12,000 – £30,000 for the supply and installation of a ground source heat pump (typically 4-12kW).

However, this depends on factors such as the type, capacity, brand, how easy/difficult the installation is, and extra features.

For example, ground source heat pumps are usually more expensive due to additional installation requirements, such as a ground loop system. You also need a large enough outdoor space to install one. Because of this, they’re not a viable option for everyone.

Related content: Heat pump efficiency: An expert overview.

Installation costs

The installation costs of a heat pump depend on several factors, including:

  • The complexity of the installation
  • Size of your property
  • Need for any additional components or modifications
  • Labour rates in your area

On average, the installation cost of a heat pump in the UK can range from £2,000 - £4,000+ for an air source heat pump or £12,000 – £30,000+ for a ground source heat pump.

NB: Ground source heat pump installations are generally more expensive due to the garden excavation required to install a ground loop.

Additional components

Depending on your specific requirements, additional components such as hot water cylinders, radiators, underfloor heating systems, or ventilation systems may be necessary. As a result, these components add to the overall installation cost of a heat pump.

Controls and thermostats

Upgrading or installing controls and thermostats to optimise the heat pump’s efficiency and performance may incur additional costs.

Insulation and building modifications

Ensuring proper insulation and any necessary building modifications to improve energy efficiency and maximise the heat pump’s effectiveness may require some extra budget.

A professional can advise you on the best heat pump type, size, and any additional components or modifications needed.

Always make sure a qualified professional carries out the installation.

NB: While the upfront cost of installing a heat pump may be higher compared with a traditional heating system, the long-term energy savings and potential government incentives or grants, such as the Boiler Upgrade Scheme, can help with the cost of a new heat pump.

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Air conditioner cost estimates

Air conditioners are specifically designed to cool indoor spaces. The unit draws in warm air from the room and passes it over an evaporator coil filled with a refrigerant. The refrigerant evaporates, absorbing heat from the air and cooling it.

Air conditioner unit cost

The cost of an air conditioner unit varies based on several factors. This includes the type and size of the unit, its energy efficiency, and the specific requirements of your home.

The size of the room will determine how many BTUs are required to cool the room, which in turn will determine the size of the unit required.

Costs vary by brand, but as a guide, a 12,000 BTU unit normally costs around:

  • £300 - £420 for a portable unit (no installation required)
  • £620 - £890 for a wall-mounted unit (not including installation)
  • £830 - £1,190 for a ducted, ceiling-mounted unit (not including installation)

Installation costs

The installation cost of an air conditioner unit in the UK ranges from £1,750 – £3,000 (or more), depending on factors such as the complexity of the installation, the type of unit (split system, window unit, or portable unit), and any additional requirements specific to your home.

We recommend getting three quotes from HVAC professionals to compare.

Running costs

The running costs of an air conditioner unit depend on its energy efficiency, how often and for how long you use it, and your local energy prices.

In the UK, electricity is typically priced in kilowatt-hours (kWh). Air conditioner energy consumption is measured in kilowatts (kW), and the running cost is calculated by multiplying the energy consumption (kW) by the cost per kilowatt-hour (kWh) of electricity.

To estimate the running costs, you need to consider the energy efficiency ratio (EER) or seasonal energy efficiency ratio (SEER) of the unit. The higher the EER or SEER rating, the more energy-efficient the unit is (and the lower the running costs are compared to less efficient models).

As an approximate guide, the running cost of a 1kW-5kW air conditioner unit can range from 24p to £1.23 per hour of operation (based on current electricity prices). However, as mentioned, this depends on factors such as the unit’s size, efficiency, and the electricity tariff in your area.

Related content: Air conditioning: everything you need to know.

Air conditioning servicing

How to optimise your air conditioner’s performance

Regular maintenance, such as cleaning filters, ensuring proper insulation, and undertaking periodic servicing, will help optimise the efficiency of your unit and potentially reduce its running costs.

To get a more accurate estimate of the running costs for your specific air conditioner unit, check its energy efficiency rating, consult the manufacturer’s specifications, and use online calculators or energy cost estimators provided by energy suppliers.

Always remember to consult with HVAC professionals or energy experts. They’ll assess your specific requirements, provide detailed cost estimates, and offer guidance on energy-efficient options that suit your needs and budget.

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Pros and cons of heat pumps vs air conditioning units

Pros of heat pumps

  • Energy efficiency: Heat pumps are renowned for their exceptional energy efficiency. By transferring heat rather than generating it, they offer significant savings on heating and cooling costs compared to traditional systems
  • Dual functionality: With a heat pump, you don’t need separate cooling and heating systems. It can also be used to provide hot water to your home. This saves space and reduces installation and maintenance expenses
  • Environmentally friendly: Heat pumps utilise renewable energy from the air or ground, making them environmentally friendly and helping you reduce your carbon footprint
  • Long-term savings: Although heat pumps often have higher upfront costs, their energy efficiency and potential long-term utility savings often make them more cost-effective in the long run

Cons of heat pumps

  • Climate limitations: Heat pumps work efficiently in moderate climates. In extremely cold regions, their heating capacity diminishes, leaving you needing an alternative heating source
  • Higher upfront costs: Heat pumps tend to have higher installation costs compared to air conditioners, due to advanced technology and additional components

Pros of air conditioners

  • Cooling efficiency: Air conditioners excel at cooling, particularly in hot climates. They’re designed to deliver instant and powerful cooling for a comfortable home
  • Lower upfront costs: Air conditioners generally have lower initial installation costs compared to heat pumps, making them a more budget-friendly option for those prioritising upfront expenses

Cons of air conditioners

  • Limited function: Air conditioners can heat rooms but aren’t typically suited to heating larger homes. Plus, they don’t provide hot water for washing and showering
  • Noise: Air conditioning units can be noisy, especially older models, which can make a humming sound

Homeowner operating aircon via remote control - Heat pump vs air conditioner cost

Final thoughts

Heat pump vs air conditioner cost

If you live in a moderate climate and prioritise energy efficiency and versatility, a heat pump is the better choice for you. Heat pumps provide both heating and cooling capabilities, offering year-round comfort and potential savings on your bills over time. They’re also environmentally friendly as they use renewable energy sources.

However, if you live somewhere with very hot summers and mild winters, an air conditioner is likely the more cost-effective option. Air conditioners are highly efficient at cooling and have lower upfront costs. They’re also suitable for those who already have a separate heating system in place.

Ultimately, it’s worth basing your decision between a heat pump and a traditional air conditioning unit on your specific needs, local climate conditions, and long-term financial considerations.

Remember to compare different models, consider energy efficiency ratings, and talk to professionals to make an informed decision that matches your specific needs and preferences.

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Working with professional estimators, we collate cost estimates for the common home improvement and repair jobs in the UK.

All the costs are estimates only. For accurate costs for your particular requirements, you are encouraged to reach out to professional tradespeople to receive a quote for your job.

Our estimators are Chartered Members (MRICS) of the Royal Institution of Chartered Surveyors and Members of the Chartered Institute of Building (MCIOB). See full disclaimer.

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