How to Calculate Heat Pump ROI

What is Heat Pump ROI?

Air source heat pumps work at 250-400% efficiency compared to 90% for gas boilers. The UK government offers a Boiler Upgrade Scheme grant of 7,500 GBP to encourage uptake.

Formula

Annual saving = (heating cost × (1 − 1/COP)) | Payback = extra_cost / annual_saving

COP: Coefficient of Performance (Ratio)
Cost: Annual heating cost (Currency)

Step-by-Step Guide

1COP (Coefficient of Performance): heat pump delivers 2.5-4 units of heat per unit of electricity
2Net installation cost after grant: typically 5,000-8,000 GBP
3Average payback: 5-12 years depending on current heating costs

Worked Examples

Input

12,000 GBP install, 7,500 GBP grant, 400 GBP/year gas saving

Result

Net cost: 4,500 GBP; payback: 11 years; 20-year net saving: 3,500 GBP

Frequently Asked Questions

What is Heat Pump Roi?

Air source heat pumps work at 250-400% efficiency compared to 90% for gas boilers. The UK government offers a Boiler Upgrade Scheme grant of 7,500 GBP to encourage uptake

How accurate is the Heat Pump Roi calculator?

The calculator uses the standard published formula for heat pump roi. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Heat Pump Roi calculator use?

This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Heat Pump Roi calculator use?

The calculator applies the standard formula for this type of calculation. See the 'How It Works' steps above for the detailed formula breakdown.

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