Heat Pump vs Air Conditioner: Which One Saves You More Money in 2027?
If you’re after a new HVAC system this year, you’ll want to see what’s best for your needs and the prices. We’ll delve into the air conditioner vs heat pump electricity bill, the benefits of air conditioners for your home and provide you with the benefits overall of both of these systems.
Simply put, you will need a heat pump if you require both cooling and heating, whereas if you need just cooling, then an air con unit is the way to go.
Heat Pump vs Air Conditioner: What’s the Difference?
If you want to replace your old gas boiler and get all round central heating and hot water, then consider an air-to-water heat pump. On the other hand, if you want targeted cooling over the summer with room-by-room heating, then an “air conditioner” (air-to-air heat pump) is the perfect solution.
*Before choosing either, be aware that in the UK an air-to-air heat pump is also called an air conditioner. It is a type of air source heat pump.
Let’s see the difference between an air-to-water heat pump and an air conditioner (air-to-air heat pump) in the table below.
| HVAC UNIT | Heat Pump (air-to-water) | Air Conditioner/Air-to-air Heat Pump |
| What it does | Provides both heating and cooling. | Provides cooling and heating through blown air.
Cooling only units are now very rare in the UK. |
| How it works | Brings outdoor heat inside (heating) and transfers it into water for central heating & hot water.
Removes heat from inside and moves it outside (cooling) |
Pulls heat from outside air and blows the heated air directly into home.
To cool, it takes heat form indoor and pumps it outside. |
Heat Pump (boiler replacement) vs Air Conditioner cost Comparison
| Type of HVAC Unit | Installation Cost | Annual running costs | Heating & Cooling? |
| Air-to-water Heat Pump (boiler replacement) | Up to £19,000. (Boiler Upgrade Scheme can pay for up to £7,500 of this)
£4,500 – £11,500 |
Between £900 – £1500 annually
|
Yes, but cooling requires specialist fan-coil radiators or underfloor cooling to prevent any water condensation
An air-to-air heat pump can. This generally costs between £800- £1400 every year |
| Air conditioner (air-to-air split system) | £3,000 – £8,000 for a multi-split air conditioning system which cools between 2-3 main rooms | This will be cheaper to run every year as it’s only for cooling. You can expect to pay up to £350 annually to run this | Yes. Modern split air con units are reverse cycle heat pumps; they can provide both |
Heat Pump running costs UK
When looking at the air-to-water heat pump installation, keep these facts in mind:
- You will pay 0% VAT on installation, thus saving you money on upfront costs.
- The Boiler Upgrade Scheme! If you’re a homeowner in England or Wales, the government will give you a grant of £7,500 to go towards installation
- Ground source heat pump – around £800 to run every year (size dependent)
- The air source heat pump can be anywhere from £900 to £1200 annually (size dependent)
Do heat pumps work in cold weather in the UK?
Yes, despite the cold temperatures, there is still loads of heat in the air outside for a heat pump to utilise and take into your home (thermal energy). Modern units are designed to work in temperatures up to below -20°C. The system is equipped with liquid refrigerant which has an extremely low boiling point, typically between -20°C to -30°C. Therefore, a British winter is no issue here.
What are the benefits of a Heat Pump?
These are known for being top tier for eco friendliness and are supported with a special UK government scheme. The scheme (boiler upgrade schemes) will grant you up to £7,500 for a regular air source or a ground source heat pump.
In terms of operation, the efficiency is remarkable. Far more so than traditional heating systems in the UK. In fact, they can be up to 400% more efficient than a gas boiler (moneysavingexpert).
This efficiency leads to lower amount of carbon emissions and a reduction in energy bills.
Overall, which is cheaper: a heat pump or air conditioner?
It depends on what you need.
If you just need that summer relief from the heat, then a fixed air conditioner has a lower upfront install cost and an increase to summer electricity bills.
If you need to replace your whole heating system though, then air-to water heat pump is the most cost efficient, and best long-term option for you. You’re backed by the governments boiler upgrade scheme and get cooling and heating in one system. Not forgetting, they are incredibly efficient and eco-friendly.
FAQ
What is the boiler upgrade scheme?
It’s a UK government grant that gives homeowners up to £7,500 towards the cost of installing a heat pump.
Is a heat pump expensive?
It can be initially, but in some cases they can be more cost saving than a gas boiler.
What’s the best heat pump in UK 2027?
To discuss the best heat pump for your property, get in touch with our BDS Energy team.
What are the two types of heat pumps?
The two types of heat pumps are ground source and air source.
Is a heat pump loud?
A modern heat pump will operate at around 40 to 60 decibels so though not loud, they will produce a noticeable humming sound if you are standing near it.