HEAT PUMP VALUE-ADD:
HOw much VALUE does it add to your home?
HEAT PUMP VALUE-ADD: HOW MUCH VALUE DOES IT ADD TO YOUR HOME?
A heat pump is considered an efficient, sustainable way of heating and cooling your home. A heat pump value-add to your property includes:
- Renewable installation
- Lower energy bills
- Higher EPC score
- Heating and cooling features
Better Homes, cooler planet
The Better Homes, Cooler Planet report estimated that by installing a heat pump in your home you could reduce your heating costs by around 37%. or £1,290.90 on average.
The report also highlighted a heat pump outperforming other forms of renewables, such as electric vehicle charging or solar panels.
Read our full article on understanding costs and savings, or take our performance simulation questionnaire to show your specific home’s potential savings.
Renewable installs Comparisons
INCREASED PROPERTY VALUE: WITH COOLING
It also depends on the current value of your home. According to a Twin Cities appraiser, Alan Hummel, adding central air can increase your home’s value by 10%.
Better Homes, cooler planet
The following case study from the WWF in collaboration with Scottish Power shows heat pump usage in a typical UK home. The typical home is defined as follows:
- Region: UK Average
- Typology: Semi-detached home
- Constructed: 1900-1966
- Floor Area: 120m²
Energy Efficiency Ratings:
- Poorly insulated house: EE0
- Improved House: EE4
- Well-insulated house: EE5
Energy Efficiency:
- Old Boiler: 66%
- Heat pump SCO: 2.35-3.55 (Adlår AURORA II 4.89@35°C to 3.48@50°C
| Old Gas Boiler | Metric | |||
|---|---|---|---|---|
| Energy Efficiency Standard | Rating | EE0 | EE4 | EE5 |
| Annual Energy Costs | £/year | £2,416 | £1,991 | £1,629 |
| Reduction in costs | % | n/a | 17.6% | 32.6% |
| Annual Energy Costs* | £/year | £2,265 | £1,840 | £1,478 |
| Reduction incosts* | % | n/a | 18.8% | 34.8% |
| Air Source Heat Pump | Metric | |||
|---|---|---|---|---|
| Energy Efficiency Standard | Rating | EE0 | EE4 | EE5 |
| Annual Energy Costs | £/year | £2,412 | £1,651 | £1,512 |
| Reduction in costs | % | 0.2% | 32.6% | 37.4% |
| Annual Energy Costs* | £/year | £2,073 | £1,411 | £1,290 |
| Reduction incosts* | % | 8.5% | 37.7% | 43.1% |
*Annual Energy Costs with Legacy Policy Costs Moved (vs. poorly insulated house with old gas boiler, with legacy policy costs moved)
EPC Ratings affect home value
Good EPC ratings can increase the value of your home by up to 20% according to a report from Knight Frank.
According to the ONS, over 50% of homes have an EPC of D or higher. By making improvements to your home with a heat pump and other improvements that come along with is, such as larger radiators.
If you want to ensure your EPC rating improves and you can still benefit from the energy savings that a heat pump offers, ensure your home is;
- Fully insulated
- Uses low energy lighting
- Has double glazed windows fitter
- Insulated hot water cylinder
- Effective heating controls
- Has solar photovoltaic panels fitted (or other renewable electricity generation)
EPC BAND C - REGULATIONS
https://bills.parliament.uk/bills/3036The Secretary of State must amend the Energy Efficiency (Private Rented 15 Property) (England and Wales) Regulations 2015 (SI 2015/962) to require that, subject to subsection (2)—
(a) all new tenancies must have an energy efficiency performance of at least EPC Band C from 31 December 2025; and
(b) all existing tenancies must be at least EPC Band C from 31 December 20 2028 where practical, cost-effective and affordable as defined under section 1(4).
Find the full bill here
WHAT ARE THE CURRENT REGULATIONS
Since the 1st of October 2008 landlords must have a valid EPC rated at EPC Band E or above to provide to prospective tenants.
UNCertainty vs planning ahead
Although there is still uncertainty on what the final rules will be, the fact remains that sooner or later the standards will need to be improved. Landlords are already being advised to start looking at upgrading, as the closer we get to the deadline the higher demand there will be for renewables and insulation solutions.
