Acquisition, Operation, Subsidies, and Cost-Effectiveness
Heat pumps are becoming a popular choice for households looking to cut energy bills and reduce carbon emissions. But many homeowners still ask: What do they cost to buy, what are the running expenses, and are there subsidies to help? This guide explains the full picture – from purchase and operation to available financial support – so you can see when a heat pump really pays off.
The upfront cost of a heat pump varies widely, depending on the system type and the property it serves. Because these factors vary, heat pump costs can differ significantly between households. While the upfront cost may appear higher, heat pumps consistently reduce energy bills and deliver lower lifetime heating costs than gas or oil boilers, making them the most cost-effective and sustainable choice for homeowners looking to future-proof their property.
Several factors influence the final price:
Air source heat pumps are usually at the lower end of the range, while ground source systems often require an additional investment due to drilling or groundworks.
Larger homes or those with higher heat requirements need more powerful systems.
Upgrades to the existing heating system, or additional works such as underfloor heating, can increase costs.
Labour costs vary across regions, and installation prices can differ depending on local market rates and travel requirements.
If you’re comparing heating options, the real question isn’t just “How much does it cost to install?”—it’s “How much will I pay every year, and when does it pay back?” The table below shows total installed investment as a % of a standard gas boiler and typical running costs as a % of gas. You’ll see that while heat pumps require a higher upfront investment, they cut yearly bills dramatically, so the payback is clear.
Energy price stability: You’re less exposed to fossil-fuel volatility; solar PV can lower costs further.
Low maintenance. One annual service keeps efficiency high and savings predictable.
Property value. A modern, low-carbon heating system improves EPC/energy ratings and buyer appeal. With ground-source solutions, the underground collectors/boreholes often outlast the heat-pump unit (50+ years), so future owners inherit long-lived infrastructure—another resale advantage.
All figures are indicative and modelled for an average European household (20 MWh annual heat demand) using SCOP 5.2 (ADAPT) and SCOP 8.48 (ETERA, water-water). Assumed prices: electricity € 0.23/kWh, natural gas € 0.13/kWh, boiler efficiency 0.92. Values reflect device-only comparisons (installation and maintenance excluded). Actual results may vary with local tariffs, climate, and usage patterns.
| Heating System | Initial Investment | Typical Running Costs (per year) | ROI (Payback Time) |
|---|---|---|---|
| Air Source Heat Pump – ADAPT (SCOP 5.20) | ~210% | Low (≈ 30 % of gas) | ~ 5 years |
| Ground Source Heat Pump – ETERA (SCOP 8.48) | ~155% | Very low (≈ 20 % of gas) | ~ 3 years |
| Gas Boiler (baseline) | 100% | Medium (baseline, 100%) | — |
| Oil Boiler | ~120–140% | High (≈120% of gas) | No ROI vs gas |
| Pellet / Biomass Boiler | ~180–220% | Medium-low (≈80% of gas) | ~10–14 years (fuel-dependent) |
| Direct Electric Heating | ~50–70% | Very high (≈200–250% of gas) | No ROI (most expensive long-term) |
Heat pumps are one of the smartest and most efficient ways to heat and cool buildings today. Instead of generating heat by burning fuel, a heat pump moves heat from one place to another – using renewable energy available in the air, the ground, or water.
You can think of a heat pump like a reverse refrigerator:
A refrigerator removes heat from the inside and pushes it outside, keeping food cold.
A heat pump captures heat from the outside (even in the winter) and pushes it inside to warm your home. And in the summer, the system can reverse the process to cool your home, replacing an air conditioner.
Heat Capture (Evaporation):
The heat pump absorbs low-temperature heat that is actually free energy from the environment (air, ground, or water) using a special fluid called refrigerant.
Heat Compression (Compression):
A compressor squeezes the refrigerant, increasing its temperature significantly – just like your hands get warm when you rub them together.
Heat Transfer (Condensation):
The hot refrigerant releases its heat into the water used for your home’s heating system (radiators, underfloor heating, or domestic hot water).
Pressure Reduction (Expansion):
After releasing heat, the refrigerant cools down and the cycle begins again.
Imagine using just 1 kWh of electricity – about the same as running a hair dryer for half an hour. Thanks to KRONOTERM’s exceptional efficiency (SCOP of up to 8.48), that small amount of electricity can produce over 5.2 kWh of heating energy.
This is enough to keep a well-insulated 100 m² home warm for 1 to 3 hours, depending on outdoor temperatures while using only a fraction of the energy that traditional heating systems would consume.
This is the power of a modern heat pump: small input, massive renewable output.
Even in freezing conditions, the air still holds usable thermal energy. Air-source heat pumps capture this renewable heat using a special refrigerant that evaporates at extremely low temperatures — often below −30 °C. As a result, they can still deliver efficient heating even when outdoor temperatures drop to −20 °C.
For maximum stability and efficiency, ground-source and water-source (geothermal) heat pumps tap into the consistent temperature of the earth or groundwater, which stays almost unchanged throughout the year. This makes geothermal systems one of the most reliable and energy-efficient renewable heating solutions, even in the coldest climates.
A DHW heat pump works like a refrigerator – but in reverse. While a refrigerator extracts heat from inside and pushes it outside, a DHW heat pump takes heat from ambient air (such as a basement) and uses it to heat water. Air is drawn in and compressed to heat water efficiently.
Here’s how it works:
To heat 200 liters of water from 10°C to a comfortable 40°C, a DHW heat pump consumes only about 1.7 kWh of electricity. This exceptional efficiency is possible due to its Coefficient of Performance (COP) above 4 – meaning for every 1 kWh of electricity used, the heat pump extracts over 4 kWh of heat from the ambient air.
Energy Use Comparison:
Thus, a DHW heat pump consumes less electricity than typical household appliances while providing hot water for the entire family, even during summer, without combustion.
As the DHW heat pump heats water, it simultaneously removes heat from the space, effectively acting as a passive cooling device:
In summer, the DHW heat pump doesn’t only reduce electricity consumption for hot water, it also cools living spaces comfortably without extra costs, a highly valued feature in homes without air conditioning systems.
If connected to an air duct system or using a model with adjustable airflow, cooling can be directed precisely where needed. As an added benefit, the condensate water produced during operation can be collected and reused for watering plants or cleaning, making it an even more sustainable and eco-friendly solution.
A heat pump is a long-term investment in comfort and efficiency. Overall heat pump costs are shaped by your property, the chosen system type, and installation details, while ongoing spend is driven by SCOP and tariffs, with subsidies improving ROI.
Your home’s characteristics determine how powerful the heat pump needs to be. More required power means a higher installed heat pump cost. The key drivers are heat loss, floor area or room volume, and the water temperature needed to keep rooms comfortable.
What increases required power (and pushes cost up)
High heat loss: Older walls, poor insulation, draughts, and single glazing let heat escape, so a more powerful system is needed.
Large floor area or tall ceilings. Bigger spaces require higher output, even with decent insulation.
Higher water temperature for comfort. Homes that feel warm only at 55–70 °C (typical for radiator systems) need a more powerful setup and slightly more complex installation — but because they also use more energy, the potential savings from a heat pump are even greater.
Heavy hot-water use. Large families or frequent baths and showers raise DHW demand, which requires a more powerful system.
Ways to reduce required power and system price
Improve the building fabric: add insulation, upgrade glazing, and seal draughts to lower heat loss before installation.
Use underfloor heating to keep water around 35–45 °C for comfortable, efficient heating.
Your existing radiators, underfloor heating, and pipework determine the water temperature your system needs and how the installation will be designed. Most homes can be adapted easily.
What can affect installation scope and cost
Higher water temperatures for comfort: Homes that need warmer water (around 55–70 °C) may require a more powerful system, which can slightly raise installation cost. However, because these homes also use more energy overall, the savings from switching to a heat pump are often even greater.
Extended pipework or multiple heating zones: Longer pipe runs or complex layouts can take more time to connect and balance, which may influence installation time and cost.
Geographic conditions such as soil type and groundwater access have a direct impact on the installation cost and efficiency of a ground-source (geothermal) heat pump.
In areas with soft or easily accessible soil, drilling or trenching is simpler and more affordable.
Where groundwater is stable, the system can achieve higher seasonal efficiency and lower long-term operating costs.
In contrast, air-source heat pumps typically involve lower upfront costs and a faster, simpler installation process, making them ideal when space or ground conditions are less suitable for geothermal systems.
Choosing the right heat source for your property helps balance installation costs, available space, and year-round efficiency, ensuring the best return on investment.
Heat pump running costs are driven by unit efficiency, system settings, and how you heat hot water. KRONOTERM is built for lower bills: ADAPT typically uses 25–40% less electricity than an average air-source heat pump, and ETERA about 40–55% less than an average ground-source model. For a well-insulated, average EU home at typical electricity prices, a KRONOTERM heat pump costs about €400–€1,000 per year to run. Below, we explain the key factors that shape day-to-day operating costs and how to keep them down.
SCOP is seasonal efficiency. It tells you how much heat the pump delivers per unit of electricity over the whole heating season. Higher SCOP means less electricity for the same comfort and lower running costs every month. A heat pump with a clearly higher SCOP can cut annual consumption by tens of percent versus an average model. Start by comparing SCOPs when you compare quotes.
Flow temperature drives efficiency. Lower water temperature protects SCOP and reduces consumption. Each extra 1°C of indoor setpoint typically adds about 5% to seasonal energy use. A correct weather-compensation curve raises water temperature only when outdoor temperatures fall, which prevents waste. Many homes see 10–30% lower consumption after optimising flow temperature, setpoint, and weather curve together.
Hot water affects running costs and the heat pump’s efficiency. Heat water at sensible times that match your routine and electricity tariff. Keep hygiene cycles enabled but avoid unnecessary high setpoints. Well-tuned DHW settings can trim total electricity use by 10–20% in family homes.
Solar PV reduces grid electricity use directly. Daytime PV can cover most or all heating needs on sunny days. With good sun, PV can push operating costs close to zero for those hours and deliver meaningful annual savings.
Many countries offer heat pump grants, subsidies, and utility rebates that cut the upfront cost. The exact amounts and rules change, but most programmes support high-efficiency systems installed by certified contractors and often prioritise boiler replacements. Check your national or local official pages for current eligibility and deadlines – our KRONOTERM partners can guide you to the right scheme and paperwork.
Many countries run heat pump grants, government incentives, and utility rebates to reduce upfront cost. Names, amounts, and dates change, but the pattern is stable: funding supports efficient heat pumps, certified installation, and replacement of fossil-fuel boilers. In the UK you’ll often see this described as a heat pump grant or government heat pump scheme; across the EU there are national, regional, and municipal programmes. Some markets also offer low-interest green loans or tax relief alongside grants.
Where to look:
National energy agency pages (e.g., heat pump grants, renewable heating incentives).
Regional/municipal programmes and building-renovation funds.
Electricity and gas suppliers offering rebates or time-of-use bonuses.
Most schemes share similar rules and paperwork. They typically prioritise a boiler replacement (gas, oil, LPG) with a high-efficiency heat pump installed by a certified contractor.
Typical eligibility & documentation:
Approved product meeting seasonal efficiency targets (often expressed as SCOP) and sound limits.
Certified installer and a heat-loss calculation / home survey.
Formal system design & quote, proof of address/ownership, and EPC/energy data where available.
Pre-approval before installation in some schemes; in others, the grant is paid after commissioning.
Plan the application before installation so you don’t miss pre-approval windows or budget cut-offs. A certified installer should lead the process, but here are the most common steps:
Check the official scheme page first. Confirm you’re eligible, whether pre-approval is required, and which documents and deadlines apply.
Confirm requirements and prepare your quotation. Some schemes may require a heat-loss calculation or specific documents. Contact us early so we can review what’s needed together.
Gather the paperwork up front. Typically needed: proof of address/ownership, photo ID, recent energy bill, photos of the existingsystem, product datasheets, and (if relevant) planning approval.
Submit and track. If pre-approval is required, wait for the grant confirmation before work starts. After installation, retain invoices, the commissioning certificate, serial numbers, and “after” photos—audits are common.
Know the payment route. Some schemes pay the installer and discount your invoice; others reimburse you after commissioning. Agree the cashflow in writing so there are no surprises.
For most modern or renovated homes, a KRONOTERM heat pump pays back fast, usually in less than a decade. High seasonal efficiency means lower bills from day one and savings that compound year after year.
Ideal in modern, well-insulated buildings or after energy renovations
Cost-effective when replacing an old gas, oil, lpg or direct-electric system
A long-term investment with a long lifespan, low maintenance and emissions
If you want reliably low running costs with future-proof comfort, choose a high-efficiency heat pump. KRONOTERM systems are engineered for top seasonal efficiency, quiet operation, and smart control that keeps bills down.
| Heat pump | High seasonal efficiency (SCOP) | Very low noise levels | Smart Controls & Remote Monitoring | PV / Tariff Integration | Grant / Certification Readiness | Service Network & Support |
|---|---|---|---|---|---|---|
| KRONOTERM | ★★★★★ Market-leading | ★★★★★ Extremely quiet | ★★★★★ Standard | ★★★★★ PV-ready | ★★★★★ Certified (most countries) | ★★★★★ Partner network |
| Market average | ★★★☆☆ Typical | ★★★☆☆ Mixed | ★★★☆☆ Often optional | ★★☆☆☆ Limited | ★★★☆☆ Varies | ★★★☆☆ Varies |
From a quick survey and clean installation to one simple annual service, the process is easy and predictable. After commissioning, there are virtually no extra costs, so lower running costs start the payback immediately. Over the long term you get quiet, reliable, worry-free comfort with low maintenance and consistently low bills.
After the initial consultation, the installer will review your project details and recommend the best system setup for your home. In some cases, a site visit may be arranged to confirm installation options and ensure the right system size and placement. This step helps achieve optimal performance, quiet operation, and long-term energy efficiency tailored to your property.
Air-source installation
We place the outdoor unit on a firm base with clear airflow. Indoors we fit an indoor unit, connect tidy pipework and a dedicated electrical supply, then commission the system. Most air-source heat pump installations are done in a single day.
Ground-source installation
If you choose ground-source, vertical collectors or horizontal ground collectors will be installed in the garden and bring insulated pipes to an indoor unit. Groundworks are usually 1–3 days, with 1 day for the plant room and commissioning.
Water-source
With access to groundwater, we install immersed or open-loop collectors, add filtration, and connect them to the indoor plant. Permits are arranged up front.
KRONOTERM heat pumps are low-maintenance by design. You only need one annual service to keep efficiency high, comfort stable, and the warranty in good standing. A certified technician handles safety and pressure checks, a quick drain inspection, and a software update – no fuss, no downtime.
Day to day, there’s nothing you need to do. You don’t have weekly checks or filter routines to worry about. If anything seems unusual, just let us know and we’ll take it from there.
With CLOUD.KRONOTERM remote monitoring, over 70% of issues can be diagnosed and fixed remotely, often without a site visit. When on-site support is needed, service engineers arrive fully prepared with the correct parts and settings, ensuring that heat pump maintenance remains fast, predictable, and hassle-free.
KRONOTERM heat pumps are built to last. With a simple yearly service, the unit typically delivers several decades of reliable operation. For geothermal systems, the ground loops and boreholes are designed as long-term infrastructure, built to serve multiple generations and to preserve the value of your investment far into the future.
Reliability comes from high-quality components, low-vibration engineering, and a modular design that lets us refresh individual parts over time instead of replacing the whole system. This matters most on ETERA – the underground array stays in place while above-ground modules are upgraded as needed, extending lifespan and keeping costs predictable.
Your system also stays future-ready. KRONOTERM integrates with solar PV and time-of-use tariffs, so you can use cheaper or self-generated electricity for hot water and gentle pre-heating.
Upfront cost depends on the system type (air vs ground), home size/heat loss, and integration (radiators vs underfloor, hot-water cylinder, groundworks). Air-source is the lowest upfront; ground-source is higher due to boreholes/collectors but has the lowest running costs. Grants can reduce the net price significantly.
Typically air-source heat pumps are the most affordable to install and fit most homes. Choose ground-source if you want the lowest bills long-term and have space for boreholes or ground loops.
For a well-insulated, average EU home and typical tariffs, a KRONOTERM heat pump is usually about €400–€1,000 per year to run (model, water temperature, and tariff dependent). Lower flow temperatures and solar PV can reduce this further.
Most households see payback in ~5 years from energy savings; grants and PV can shorten this.
Yes—and the savings can be even higher, because older homes usually have higher heat demand. That bigger baseline means every % of efficiency gains translates into more money saved per year, often leading to faster payback (especially with grants).
Yes, modern KRONOTERM heat pumps are perfectly suitable for radiator systems. Thanks to advanced compressor technology and higher output temperatures, they can efficiently heat existing radiators without major system changes. This makes them ideal for renovations and retrofits, where homeowners want to replace old boilers while keeping the comfort of their current heating setup.
In most countries, heat pump grants continue from year to year, but names, amounts, and rules change. Always check your official national/regional grant page before ordering and follow the required pre-approval steps.
Combination rules vary. Many areas allow stacking a national grant with a regional/utility rebate, while some schemes don’t permit overlap. Check the official guidance for your area and apply in the correct order (pre-approval is often required).
