How much can you save on your energy costs with a heat pump?

There are many reasons to choose a heat pump. That’s why Daikin has created the whitepaper Drivers to Heat Pump Adoption by European Households, offering fact-based insights to help consumers make an informed decision. It explores key factors such as energy cost savings, government incentives, environmental impact, policy developments, and how heat pumps integrate with renewable energy solutions to future-proof homes.

In this article, we’ll focus on how a heat pump can help reduce your energy costs through improved efficiency and lower reliance on fossil fuels.

Switching from a gas boiler to a heat pump for heating and domestic hot water production is projected to generate significant energy savings over the next 10 years. These savings are expected to increase over time. Daikin Europe's simulation, which considers future energy prices and factors like the European Emission Trading System and Carbon Taxation, highlights the growing financial benefits of heat pumps.

Lower energy bills and future energy-prices

One of the main reasons to install a heat pump is its lower energy consumption, leading to reduced bills and therefore increased savings for households. Daikin Europe has conducted a simulation to forecast future energy prices in Europe, based on historical data and considering factors like the European Emission Trading System and future Carbon Taxation. While these forecasts involve some uncertainty, they provide a solid foundation for assessing potential savings.

How will carbon taxation impact future energy prices?

Although forecasted prices after 2032 are beyond the scope of this project, it is worth noting how after 2035 the effect of ETS and Carbon Taxation will play an even greater role in rendering fossil fuels more expensive for European households.

Case study: comparing energy consumption of a heat pump vs. gas boiler

The simulation included a case study comparing the energy consumption of a heat pump and a gas boiler in a home with a space heating demand of 10,000 kWh annually, equivalent to around 1,100 m³ of gas consumption. This scenario reflects a new 200 m² house or a mid-sized renovation of up to 120 m² with an E energy class rating.

The results indicate that installing a heat pump can lead to steady and growing savings over the forecasted 10-year period, with a total estimated savings of €2,602 by the end. These savings increase as the price gap between electricity and natural gas widens.

Future-proofing home heating investments

It's important to note that these projections are based on current trends and assumptions, including the implementation of carbon taxes starting in 2023 and a gradual phase-out of non-condensing boilers. While the future energy market is unpredictable, these simulations offer valuable insights into the potential benefits of heat pumps.

For detailed data, sources, and references, please refer to the full whitepaper (available for download in English).