epIMS, the EPC and energy information platform developed for landlords, says heat pumps might not be the way of improving private rental EPC ratings.

Analysis of government data by epIMS shows that the government’s push for heat pumps has seen 113,555 government-supported heat pump installations take place across the UK over the last five years alone.

In Q2 of this year, some 9,871 were installed versus just 2,461 during Q2, 2019, with a 41% increase in the number of heat pumps installed in the last 12 months alone versus the previous 12 months. The vast majority (99%) of these installations were air source heat pumps, with this remaining by far the most common option over the years.

This drive to improve the energy efficiency of homes is based on the fact that heat pumps are generally more efficient when compared to a traditional gas boiler.

Based on an average household and set-up, a gas boiler holds an efficiency (coefficient of performance) level  of 85% and uses 11,212 kWh in energy per year. In comparison, a ground source heat pump uses 2,383 kWh and boasts an  efficiency level  of 400%, whilst an air source heat pump is rated as being 300% efficient and uses 3,177kWh.

However, whilst epIMS concedes that heat pumps may be more efficient, this doesn’t necessarily mean they’re more cost effective. 

This is down to the fact that they use electricity which tends to be more expensive than gas both in terms of raw energy prices (£0.2450 vs £0.0624 pence per kWh) and standing charges (£0.6099 vs £0.3166 pence per day). .

As a result, the total estimated annual bill for heating and hot water when using a ground source heat pump is £806, just £9 cheaper than a traditional gas boiler, whilst heating a home with an air source heat pump will set you back £1,001 a year on average.

But can heat pumps help landlords hit the potentially required EPC C rating by 2030 despite the high costs to implement and operate?

The answer, says epIMS, is no. 

The calculations behind EPC ratings aren’t based purely on the efficiency of a property, they are also based on the cost required to heat and power a home. This often means that a cheaper energy source will result in a better EPC rating which has historically favoured gas boilers due to the lower price of gas versus electricity.

Whilst the energy price cap has brought the price of electricity and gas closer together, landlords might not necessarily be better off with a heat pump when it comes to the EPC rating of their property.

The chief operating officer of epIMS, Craig Cooper, says: “Whilst an Air Source Heat Pump  is more environmentally friendly than an efficient gas boiler and in the right circumstances can be less expensive to run, they currently don’t improve most EPC ratings.

“As a consequence, landlords need to look carefully at what improvement measures contribute towards a C rating, which is widely expected to become mandatory by 2030.”