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Are electric boilers better than heat pumps?
Nick Daws explores an alternative to heat pumps that could be a better option for some
As you will doubtless know, the government and energy companies have been promoting heat pumps hard as a means of achieving their Net Zero emissions targets.
But, as I have noted before on Mouthy Money, while they have their attractions, heat pumps do have significant drawbacks as well, especially for older/smaller properties. They are far from being a one-size-fits-all solution.
So today I thought I’d take a closer look at an alternative to heat pumps that may be a better choice for some. Electric boilers receive far less publicity than heat pumps; indeed, you may not even have heard of them. But if you’re looking to switch to a heating system that runs on electricity rather than fossil fuels, they do have several advantages.
So what’s the difference?
Both heat pumps and electric boilers use electricity, but apart from that there are major differences between them.
Heat pumps extract heat from external sources like the air, ground or water. They amplify this using an electrically-powered refrigerant cycle, before distributing it within the home to supply heating and hot water.
Electric boilers are simpler (and therefore generally cheaper) devices. They heat up water directly using electricity. This is then circulated through pipes and radiators to heat the home and supply hot water. Unlike heat pumps, you won’t generally have to fit new pipework and radiators as well.
Pros and cons
Heat pump pros
Energy efficiency – Heat pumps are highly efficient, often achieving efficiency rates of 300-400%. This means they can produce three to four units of heat for every unit of electricity consumed. This efficiency is significantly higher than that of traditional heating systems.
Reduced carbon emissions – By using renewable energy sources, such as air, ground, or water, heat pumps contribute to lower carbon emissions. This may make them a greener choice.
Versatility – Most modern heat pumps can provide both heating and cooling, offering a year-round solution for temperature control. This dual functionality can be particularly beneficial in the variable UK climate.
Government incentives – The UK Government offers financial incentives such as the Renewable Heat Incentive (RHI) to encourage the adoption of heat pumps. These can help offset the initial costs.
Heat pump cons
High initial costs – Even with government grants and incentives, installing a heat pump system can be expensive, with costs ranging from £8,000 to £15,000 or more, depending on the type and complexity.
Installation challenges – Installing a heat pump may require significant modifications to your property, such as extensive groundworks for ground-source heat pumps or adequate outdoor space for air-source units. Also, heat pumps typically operate at lower temperatures than gas or oil central heating, so you may need to install bigger radiators and pipework. Extra home insulation may also be required. Naturally all this costs money and may entail significant disruption.
Performance in cold weather – While modern heat pumps are designed to work in cooler climates, their efficiency is reduced. Performance can be badly impacted during extreme cold spells, potentially necessitating a backup heating system.
Maintenance requirements – Heat pumps require regular maintenance to ensure optimal performance, adding to the long-term costs.
Electric boiler pros
Lower up-front costs – Electric boilers are generally less expensive to purchase and install compared to heat pumps. Installation costs typically range from £1,500 to £2,500.
Ease of Installation – Installation of electric boilers is straightforward. It can often be done in a day as it doesn’t require significant modifications to the property. They can easily replace existing gas or oil boilers.
Space efficiency – Electric boilers are compact and do not require external components, making them ideal for smaller properties with limited inside and/or outside space.
Cheap to maintain – As with other types of boiler (and heat pumps) an annual service is usually recommended. Due to the small number of moving parts, however, the price may be lower. Modern electric boilers are generally very reliable, reducing the cost of repairs and maintenance over the lifetime of the boiler (typically 15-25 years).
Quiet operation – Electric boilers run almost silently, without the noise often associated with heat pumps. This can be an important consideration in noise-sensitive environments.
Electric boiler cons
Higher running costs – Electric boilers are less efficient than heat pumps, with efficiency rates around 99-100%. Despite being efficient, the cost of electricity in the UK is relatively high, which can result in higher running costs.
- Of course, you can use electricity from renewables such as solar panels and wind turbines (ideally in conjunction with home storage batteries) to help keep running costs down.
Less environmental benefit – While electric boilers produce no on-site emissions, the environmental impact depends on the source of the electricity. If the grid relies heavily on fossil fuels, the overall carbon footprint may be higher compared with more efficient heat pumps (though of course heat pumps draw electricity from the grid as well).
No cooling capability – Unlike heat pumps, electric boilers cannot provide cooling, which may be a drawback for those looking for a year-round temperature-control solution.
How to choose
As you can see, heat pumps and electric boilers both have their attractions and drawbacks, and choosing between them may not be straightforward. Beside the considerations already mentioned, a further factor to bear in mind is your lifestyle.
Electric boilers produce heat and hot water relatively quickly, making them a good choice if you are out and about a lot but want rapid warmth and hot water when you get home. Heat pumps are slower to warm up and may be better suited to those who are around more in the day and want to keep their home at a fairly constant temperature.
Choosing between a heat pump and an electric boiler depends on various factors, including your initial budget, property size and type, long-term cost considerations, and (as mentioned above) your lifestyle.
A note of caution
I do just want to sound a note of caution here about putting all your home heating eggs in one metaphorical basket, especially that of electricity.
As the UK transitions from fossil fuels towards electricity, power cuts are likely to become more frequent and longer, with London and the South-East especially vulnerable. This was recently acknowledged by the National Grid [source].
The growing use of heat pumps and EVs will add to the demand for electricity from a distribution network already struggling to cope. And renewable energy sources such as solar and wind, while they might be more environmentally friendly, produce less electricity when the sun doesn’t shine or the wind doesn’t blow.
If you’re entirely reliant on electricity for your home heating, this could make you vulnerable in the event of blackouts (especially relevant if there are older people in the house). In my view there is much to be said for having a backup heating source not dependent on electricity to keep your home warm if the mains electricity fails. Of course, this applies equally with regard to heat pumps and electric boilers.
- I wrote about a wide range of alternative home heating options in this recent Mouthy Money article. A home battery system, as discussed in this recent article, can also reduce your vulnerability in case of power cuts.
Closing thoughts
Summing up, heat pumps can be a good choice for home heating, especially in new-build homes which have been designed around them with good insulation. The added benefit of cooling is also worth bearing in mind. However, the high up-front costs and potential installation complexities should be carefully considered.
Electric boilers offer a more straightforward, cost-effective solution with lower initial costs, making them suitable for properties with space constraints inside and/or out. Though in the longer term their potentially higher running costs might be a concern.
Ultimately, the decision should align with your needs, financial situation and long-term plans and goals. A professional heating engineer can provide tailored advice to help you make the best choice for your home.
Hopefully by this means you can find a heating solution that will suit your budget, your lifestyle, your priorities, and your property size and character.
As always, if you have any comments about this article, please do share them below.
Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.
Photo credits: Pexels
