Now is an excellent time to consider alternative central heating systems as you will be future proofing your home and adding value.

Government has banned the installation of gas boilers for water and central heating in new homes from 2025 to help the UK reduce its carbon emissions. But to get to net zero by 2050 we will all need to change the way we heat and power our homes, both new and existing. Today the vast majority of dwellings (85%) in the UK are heated by natural gas, a fossil fuel.  So, what are the cleaner, greener alternatives and how cost-effective are they?

Renewable Heat Incentive (RHI)

While many renewable heat technology systems promise lower heating bills, there is often a higher upfront installation cost. To tackle this affordability issue, there are financial incentives to go green. Under the government’s Renewable Heat Incentive (RHI), homeowners get quarterly payments for the first seven years per unit of renewable heat systems produce. Combine the RHI payments with the lower fuel bills and you shouldn’t be left out of pocket, according to a study by Which?

It’s important to do your own sums. Actual savings will depend on the size of your own property, efficiency of the new technology and type of system it replaces (gas, oil or electric). As regards the perks, government has its own domestic RHI calculator. You can enter specific details about your property to get a rough idea of the amount of money you could earn if you install eligible renewable heat technology  https://www.gov.uk/renewable-heat-incentive-calculator
 

Ground source heat pumps

It may be hard to believe but the soil in your garden can replace your boiler as a source of heat. To harness the heat, you will need a clever piece of kit called a ground source heat pump. The pump turns the heat that is stored naturally in the ground into heat for your radiators, underfloor heating and hot water systems. It works by absorbing heat from the ground (even at low temperatures) into a fluid within a pipe loop buried in the ground. This fluid is pumped to a heat exchanger, where the energy is given up via a refrigeration system. Hot water is fed to a tank and around your heating and hot water circuits. The cooled fluid is then pumped back out into the ground loop to absorb more heat energy.

This option requires digging deep trenches and laying pipes. The scale of the pipework will vary with the size of your home. Typically, a ground source heat pump requires a lot of space. Installing the pump is expensive as it requires major excavation work. The heat pumps cost between £11,000 to £18,000 depending on the size required to heat your home.

Air source heat pumps

Air source heat pumps are an ingenious way of collecting heat from the air surrounding your property even when the temperature is as low as -15C. It works like a fridge in reverse. Warmth from the air is absorbed at low temperature into a fluid. This fluid then passes through a compressor powered by electricity where its temperature is increased. This heat is transferred to the hot water system in the house and can be used to heat radiators, underfloor heating and hot water systems.

Easier and cheaper to install than a ground source heat pump, the unit looks like an air conditioning unit. You will need a place outside your property where it can be fitted to a wall or placed on the ground. Unlike gas and oil boilers, heat pumps deliver heat at a lower temperature over much longer periods. During the winter they may need to be on constantly to heat your home efficiently. Heat pumps work best in well-insulated homes.

Air source heat pumps cost between £6,000 and £8,000.  But costs will vary with area and size. The fuel savings can be considerable. You may also be eligible for RHI payments.

Water source heat pump

Water source heat pumps work along the same principles as ground and air heat pumps but require a body of water, such as river or lake, close to your home. Pipes are placed under the water which is at a constant temperature between 7 to 12 degrees. A special refrigerant fluid in the pipes draws up the heat which then is passed to a heat pump inside the home. With an electricity-powered compressor, the temperature is increased and transferred to water that is hot enough to pipe around radiators, underfloor heating and hot water systems for taps.

Water source pumps are one of the most efficient heat pumps but aren’t an option for most homes due to lack of nearby river or large pond.  The cost of installing a water source heat pump is around £10,000, making it one of the more expensive options. The advantage is that energy savings are higher. The Energy Saving Trust estimated that this type of heat pump could slash between £395 and £2,000 a year off your bill depending on which heating system it replaces. As with the other pumps, homeowners could benefit from the RHI scheme. Heat pumps aren’t totally green as they require electricity to run, but the heat they extract from the ground, air or water is constantly being renewed.

Solar thermal panels

Most people know you can convert the sun’s rays into electricity using solar panels installed on your roof but there’s another popular way to harness the sun’s power. Solar thermal technologies turn sunlight into heat instead of power.

These eco-friendly systems are fitted to your roof where they absorb the sun’s heat. The heated fluid is then transferred to your hot water tank where it is ready to use. Sadly, solar thermal panels aren’t enough to meet a typical house’s heating demands, so they’re often used with other technology such as heat pumps.

Solar thermal panels work best on south-facing roofs. Like solar PV, they don’t require sunshine to work and can operate on cloudy days. You can choose to install them on the ground instead of the roof (if you have space) so long as they are in direct, unshaded light.

Installation prices vary between £3,000 and £6,000 and the RHI helps recoup the initial investment with quarterly payments over seven years. Solar thermal panels are not suitable for electric showers or cold-fill washing machines/dishwashers.

Biomass (wood fuelled) boilers

Biomass boilers work in a similar way to conventional fossil fuels ones, where fuel is burnt in the boiler which produces energy that is used for space heating and hot water for the entire home. But instead of using gas or oil to produce the heat, they burn logs or wood chips and pellets. On the downside, biomass boilers and stoves require regular cleaning to remove ash although some are self-cleaning.

Biomass boilers cost between £7,000 and £15,000 including installation, a regulation-meeting flue or existing lined chimney and a pellet/log store. If you’re lucky enough to have a free supply of wood, then you can heat your home at zero cost. Biomass boilers are eligible for the RHI subsidies so long as they are bought from an official supplier.

Renewable heating systems can be a great investment for your home, although initially pricey the returns more than justify the initial expense. There is a range of options. Some are more suitable for certain types of properties than others, but they all work best if your home is well insulated. Before applying for RHI payments, you must have an Energy Performance Certificate (EPC) for your home that is less than two years old. To be eligible for the RHI, you must also use an installer and system with current certification from the Microgeneration Certification Scheme (MCS). Solar water heating systems only can also be certified by Solar Keymark. 

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