HEAT PUMP or BATTERY STORAGE only one saves money (UK 2022)

the cost of electricity and heating has risen dramatically in the uk and elsewhere over the past year and it is likely to go up again in the autumn the cost to heat and power my own home has doubled over the past two years as a homeowner and an architect who specializes in altering private homes i have been researching technologies that might help reduce the cost of running a home in the uk beyond the easy stuff like adding insulation or installing low energy electrical fittings what else can a homeowner do there are two main technologies on the market just now which save money on heating and powering a home air source heat pumps and battery storage both are expensive so i decided to work out which technology i would go for first if i had to choose between the two air source heat pumps have been in the news recently because the uk government now provides funds to reduce the cost of installing them in private homes without going into the technicalities an air source heat pump is intended to replace a gas boiler and provide all the hot water needed for a house the pump doesn't burn gas it uses electricity and clever physics to create hot water battery storage is intended to charge up during the night time when electricity costs less and then power the house during the daytime when electricity is expensive thus saving money everyone's home is different and household needs vary but for this comparison i will use my own home because i am seriously considering investing in one of these technologies myself in this video i will compare the installation costs and the savings lightly from each technology i discussed this with a company called latent heat an air source specialist in edinburgh this video isn't sponsored i worked with latent heat on some recent projects and found them very informative i've left a link in the description they advised me that older properties are less well-suited to air source heat pumps i am sure there's a video to be made on this topic alone but having discussed my own needs with them they estimated that after the government funding i would need to pay about 5 000 pounds to install an air source heat pump on top of this i would need to upgrade the radiators and plumbing in my home to ensure the pump runs efficiently so overall i would have to pay about six thousand pounds then i spoke to an electrician i know who installs solar panels and battery storage he recommended the give energy system which would store 8.2 kilowatt hours of electricity this will cost about 5 000 pounds to install and should not require further alterations to my house it's plug and play so now i know the installation costs but how much money will these systems save me over time over the past year my household used 11 200 kilowatt hours of electricity and 14 900 kilowatts of gas at current prices i pay about 28 pence per kilowatt hour of electricity and 7.3 pence per kilowatt of gas so electricity costs our household 3136 pounds per year and gas cost us 1087 pounds per year i should say that for the past four years i have driven electric cars and this makes a big difference to the calculations i typically use about 460 kilowatt hours of electricity per month or 5 500 kilowatt hours per year to run my car so about half our household electricity goes towards driving our house is small just 75 square meters and it was built in the early 1990s so it's reasonably well insulated let's start with the air source heat pump given this replaces a gas boiler the maximum saving i can make is to remove the cost of gas supply for our house we don't use gas for anything else in our home so the air source heat pump would save us at most 1080 pounds per year the pump won't run for free however it requires electricity latent heat advised me that i can expect to use one kilowatt of electricity for every 3.5 kilowatts of heat generated our house requires about 12 000 kilowatts of heat annually at one kilowatt of electricity for every 3.5 kilowatts of heat output that would require 3 400 kilowatt hours of electricity per year to run the air source heat pump at a cost to 28 pence per kilowatt hour that comes to 952 pounds given it costs 1087 pounds to run the current gas boiler this means the air source heat bump will only save me about 135 pounds annually and if it costs me 6 000 pounds to install the payback period will be measured in decades rather than years so what about the electric battery the big advantage here is that i could use nighttime tariffs my current electricity supplier offers a tariff of 9.45 per kilowatt hour between 2am and 6am with electricity costing 32.8 pence outside those hours the downside of a nighttime tariff is that the daytime rate is higher than the normal flat rate given that i work from home and we use electricity for cooking meals as well as cleaning and drying clothes in winter it never made sense to use this nighttime tariff before but with a storage battery this becomes much more feasible i could charge my electric car overnight at one third the current price given i use 500 kilowatt hours to run the car per year this would now cost 520 pounds annually rather than 1540 pounds a saving of about 1 000 pounds per year if we installed an 8 kilowatt hour battery that would provide about half the energy the rest of the house uses each day so rather than paying 28 pence for 15 kilowatt hours costing four pounds 20 per day our household would pay 75 pence for the first eight kilowatt hours and two pounds 29 for the remaining seven kilowatt hours a saving of one pound twenty per day or four hundred and thirty eight pounds per year the combined savings from the house and the electric car would be one thousand four hundred and thirty eight pounds annually using the storage battery given it cost about five thousand pounds to install it would pay for itself in less than three and a half years even without the electric car a battery storage system like this would pay for itself in eleven and a half years which is still well ahead of the air source heat pump as i said at the outset everyone's situation is different and if you are thinking about either of these technologies please speak to a specialist and do your own calculations my name is neil and i have been a self-employed architect in the uk since 2009 i regularly make videos on the reality of altering and extending private homes if you want to see more please subscribe

Channel: Real Life Architecture

Views: 86,295

Keywords: Battery storage payback, air source heat pump payback, Battery storage savings, Givenergy battery storage payback, cost for air source heat pump installation, air source heat pump cost, home battery storage uk, Givenergy, Givenergy battery, Givenergy battery cost, Givenergy battery payback, Givenergy battery storage, Heat pump, air source heat pump, air source heat pump review, Air source heat pump uk

Id: IzPu3HJE3rE

Length: 6min 24sec (384 seconds)

Published: Fri Apr 15 2022