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. 

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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

The post Are electric boilers better than heat pumps? appeared first on Mouthy Money.

The UK Government is currently pushing heat pumps hard in its quest to achieve Net Zero.

As I said in my recent article for Mouthy Money, however, they are definitely not a one-size-fits-all solution for home (or business) heating.

Even the government admits heat pumps are unsuitable for around four million UK homes, for a variety of reasons including lack of outside space and planning restrictions. Industry estimates suggest the real number is closer to eight million [source].

Even if your home is theoretically suitable for a heat pump, there are good reasons why you might not want one. As previously discussed, these include the high initial cost, the potential noise issues, and the fact they work less well in cold weather (just when you need them most!). 

For heat pumps to operate effectively, properties must be well insulated, and bigger pipes and radiators are likely to be needed. This can add considerably to the cost, not to mention the disruption. In my personal view heat pumps are best suited to new-build homes that can be designed around them.

So today I thought I would set out a range of other home heating solutions you might want to consider. I will also set out some points to take into account before making any decision.

Heat pump alternatives

1. Gas boilers

Gas boilers have been a staple in UK homes for decades, and they remain a very popular choice for heating. They provide reliable and instantaneous heat, making them particularly suitable for homes with high hot water demand. While they rely on fossil fuels, modern condensing boilers are more energy-efficient, helping to reduce carbon emissions (and costs) compared to older models.

2. Oil boilers

For properties not connected to the gas grid, oil boilers offer a viable alternative. They work similarly to gas boilers but use heating oil stored in a tank on the property. While oil prices can fluctuate, modern oil boilers are highly efficient and can provide consistent warmth to homes in rural areas or those without access to natural gas.

• In future oil boilers may be converted to run on hydrotreated vegetable oil (HVO), which is a renewable and 100% biodegradable alternative [source].

3. Biomass boilers

Biomass boilers use organic materials such as wood pellets, chips or logs to generate heat. They’re a sustainable option, as wood is a renewable resource.

Biomass boilers can be integrated into existing heating systems and may be eligible for government incentives such as Green Deal, making them an attractive choice for environmentally conscious homeowners.

4. LPG (liquefied petroleum gas) boilers

LPG is a clean-burning fossil fuel typically stored in a tank on the property, providing a reliable source of heating and hot water. LPG boilers function similarly to natural gas boilers, offering instant heat and efficient performance. They’re particularly popular in rural areas where mains gas is unavailable, providing homeowners with a convenient and cost-effective alternative for heating their homes.

5. Electric heating systems

Electric heating systems come in many different forms, including electric radiators, storage heaters and underfloor heating. They also include low-emission infrared panels.

While electricity prices can be higher than gas or oil, advances in technology have led to more energy-efficient electric heating options. They are often easier – and therefore cheaper – to install and require less maintenance compared to traditional boiler systems. They can be a good choice for smaller properties and those with limited space.

6. Air conditioning systems

Traditionally associated with cooling, modern air conditioning systems can also provide heating during colder months through a process known as reverse cycle or heat pump technology. 

These systems extract heat from the outdoor air and transfer it indoors, offering both heating and cooling capabilities in a single unit.

While more common in warmer climates, air conditioning systems are becoming increasingly popular for heating purposes in the UK due to their energy efficiency and versatility.

7. Electric boiler systems

Electric boilers function similarly to gas or oil boilers but use electricity as their primary energy source. They heat water for central heating and domestic hot water supply, offering a clean and convenient heating solution.

They can normally be used with the same radiators as gas boilers, unlike heat pumps which (as mentioned above) typically require the installation of bigger radiators and pipes.

Electric boilers are compact, quiet, and emit no emissions on-site, making them suitable for properties where space or ventilation is limited. While electricity costs may be higher than some other options, electric boiler systems can be an efficient and low-maintenance option.

• The MInistry of Defence recently decided to opt for electric boilers rather than heat pumps as a more cost-effective solution for barracks and other military installations [source].

8. Hybrid heating systems

Hybrid heating systems combine two or more heating technologies to optimize energy efficiency and performance.

For instance, a hybrid system might pair a gas boiler with a heat pump or integrate solar thermal panels with a conventional boiler.

These systems offer flexibility and can adapt to changing energy demands, providing homeowners with both reliability and sustainability.

9. Solid fuel stoves

Solid fuel stoves, such as wood-burning or multi-fuel stoves, provide both warmth and ambiance to homes. They’re particularly popular in rural areas where homeowners have access to firewood or other solid fuels.

While they require manual operation and regular maintenance, solid fuel stoves can significantly reduce heating costs and add character to any living space.

10. District heating networks

In urban areas, district heating networks supply heat to multiple buildings from a central source, such as a combined heat and power (CHP) plant or biomass facility.

This communal approach to heating can be more efficient and cost-effective than individual heating systems, offering residents a sustainable and reliable heat supply without the need for on-site boilers or heat pumps.

Considerations when choosing an alternative

When exploring alternatives to heat pumps, various factors need to be considered. 

Cost: Evaluate the initial investment, ongoing maintenance costs, and potential savings (or otherwise) on energy bills.

Space: Consider the available space for installation and the requirements of each heating system.

Energy efficiency: Look for heating solutions with high energy efficiency to minimize running costs and environmental impact. 

Fuel availability: Assess the availability and accessibility of fuel sources in your area.

Control options: Explore the available control features, such as programmable thermostats or smart technology integration, for convenient operation and efficient energy management.

Lifestyle factors: Some heating methods (e.g. electric) are good if you are out and about a lot but want rapid warmth when you get home. Other methods (including heat pumps) are better suited to those who are around more in the day and like to keep their home at a fairly constant temperature.

Political and economic factors: Bear in mind that the government is keen to achieve its Net Zero targets, and as a result some heating options may become more costly in future and harder (or even impossible) to access. That applies to fossil fuels in particular; although realistically it is hard to see fuels such as gas being banned entirely any time soon.

Finally, I’d like to sound a note of caution about putting all your home heating eggs in one metaphorical basket, especially that of electricity.

As the UK transitions from fossil fuels towards (supposedly) greener electricity, power cuts are likely to become more frequent and longer.

The growing use of heat pumps and EVs will add to the demand for electricity from a distribution network that is already struggling to cope. And renewable energy sources such as solar and wind, while they may be more environmentally friendly, produce significantly 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 outages (especially if there are older people in the house). In my view there is much to be said for having a backup heating source, e.g. solid fuel, to keep your home warm if the mains electricity fails. Of course, this applies with regard to heat pumps as well, as they require electricity to function.

It’s also worth noting that in Scandinavian countries, where heat pumps are more common, most families have an additional source of heating as well as heat pumps to get them through the coldest months.

• A home battery system, as discussed in this recent article, can also reduce your vulnerability in case of power cuts, especially when combined with solar panels.

Closing thoughts

In summary, while the government and energy companies are pushing heat pumps hard, they are far from the only possible home heating solution, either now or in future. 

If you’re considering upgrading your heating, take time to evaluate all the options and don’t be unduly swayed by the heat pump hype (and even misinformation). While these devices can work well for new-builds in particular, they are definitely not the only option.

By exploring alternatives such as gas and oil boilers, biomass systems, electric boilers, LPG boilers, solid fuel stoves, aircon systems, and others, you should be able to find a heating solution to suit your budget, your lifestyle, your priorities and your property size and character.

Good luck, and stay warm! 

As always, if you have any comments or questions about this article, please do post 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

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