Heating Cost Comparisons

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    Heating OptionsThe issue of alternative heating systems can be quite complicated and much depends on the nature of

    the individual property. The following is intended to give a brief overview of the main heating options.

    It should be noted that energy prices in general can be expected to rise significantly in the medium to

    long term, and so reduction in demand through measures such as insulation and draught-proofing

    remain important, regardless of the heating method.

    Fuel Costs (average taken from October 07,08,09 Sutherland Tables)

    Stenton average: Space Heating and Hot Water = 35,800kWh

    Fuel Cost per year

    Ground Source Heat Pump 1,280Mains gas 1,390

    Coal 1,440

    Oil 1,615

    Air Source Heat Pump 1,735

    Wood pellets 1,935

    Grid electricity off peak 1,975

    LPG 2,235

    Grid electricity - peak 4,340

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    GSHP Mains gas Coal Oil ASHP Wood

    pellets

    Electricity-

    off peak

    LPG Electricity -

    peak

    Average cost p/kWh CO2 emissions kgCO2/kWh

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    Ground Source Heat Pump

    Heat pumps work by moving heat from one location to another, in this instance from the outside

    ground to inside the home. Pipes are laid either in coils beneath the surface of the ground or in deep

    boreholes through which a refrigerant is passed, absorbing heat from the surrounding ground. This is

    then compressed resulting in a higher temperature which can be used to heat a central heating

    system or underfloor heating. The process is powered by electricity, conventionally expensive as aheating option, but a GSHP can provide more than three times the energy output compared to input so

    can be very cost effective. However, installation costs are high in comparison to more common

    heating systems (although grants support exists) and it can be disruptive to install. In addition to

    the external pipework, an existing central heating system may need to be replaced since the lower

    operating temperatures usually require bigger radiators or underfloor heating. GSHPs have been

    retrofitted successfully in older properties but tend to be more frequently used in new builds where

    standards of insulation and draughtproofing are higher and installation more straightforward.

    Pros Cons

    Low running costs Suitable for off-gas areas Works well with underfloor heating Grants available Running costs can be reduced if using off

    peak or non-grid electricity

    High installation costs 10,000-20,000 Installation can be disruptive Best suited to well insulated &

    draughtproofed properties.

    Mains Gas

    Currently the most common form of heating in the UK, up till now mains gas has been relatively cheap

    and has a lower CO2 emission factor than other fossil fuels. However as with other fossil fuels, gas

    isn't sustainable in the long term, prices can be expected to rise considerably and there areuncertainties over future supplies.

    Pros Cons

    Low/moderate running costs Low CO2 emissions compared to other

    fossil fuels

    Future price rises Future uncertainty over supply Unsustainable in the longer term Not always available

    Coal

    Coal is still relatively cheap but the inefficiency, lack of control and manual work involved has made it

    less common as a heating fuel. It also has a high carbon emission factor, is unsustainable in the

    longer term, and costs can be expected to rise.

    Pros Cons

    Low/moderate running costs Future price rises Unsustainable in the longer term Less efficient heating system Manual operation High CO2 emissions

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    Oil

    Oil has generally been the most popular heating option in off-gas areas. The installation costs of an

    oil fired central heating system are moderate and oil condensing boilers are the most efficient type

    on the market. Historically it has been a comparatively cheap option, although the price has been

    volatile and is likely to rise considerably over the medium to long term.

    Pros Cons

    Low/Moderate running costs Volatile price Future price increases Unsustainable in the longer term High CO2 emissions compared to gas

    Air Source Heat Pump

    Air Source Heat Pumps work in a similar fashion to GSHPs but use air as the heat source, drawing it

    through a fan. ASHPs aren't quite as efficient but will typically achieve around 2.5 times the energyoutput compared to input, although in colder weather efficiency drops. As with GSHPs they tend to

    have lower operating temperatures so work better with oversized radiators or underfloor heating,

    but are becoming increasingly popular in the retrofit market. Installation requires planning

    permission and the fan units do generate some noise so should be sited with care.

    Pros Cons

    Moderate running costs Suitable for off-gas areas Works well with underfloor heating Can work with conventional central heating

    system

    Grants available Running costs can be reduced if using off

    peak or non-grid electricity

    Moderate/high installations costs 6,000-10,000 Efficiency drops as external temperature

    falls

    Best suited to well insulated &draughtproofed properties.

    Planning permission required Possible noise issue

    Wood Pellet Boiler

    Wood pellet boilers have become more popular but are currently still a small part of the market.

    Whilst reliable in themselves there have been problems in the past with certainty of pellet supply

    although this appears to be becoming less of an issue. The pellet store required is quite sizeable and

    needs to be accessible for delivery, but otherwise the system is similar to a typical central heating

    system.

    Pros Cons

    Moderate running costs Suitable for off-gas areas Compatible with existing central heating

    systems

    Very low CO2 emissions Grants available

    High installations costs 10,000+ Sizeable pellet store required Access for delivery required Previous uncertainty over supply Limited market Less responsive than oil/gas

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    Off-peak electricity (storage heaters, electric wet central)

    Off peak electricity is most often used with storage heaters. These charge over night at a low rate

    and then release heat during the day. This can suit people who are at home during the day but much

    of the heat can be lost by evening so additional heating is sometimes required. An alternative is an

    electric wet central system with conventional radiators heated by an electric boiler. These can

    work well but require a cheap rate tariff such as Economy 10, supplying cheap rate electricity atdifferent periods during the day. If used with peak rate electricity the running costs begin to rise

    significantly.

    Pros Cons

    Suitable for off-gas areas Low/moderate installation costs

    Moderate/high running costs Can be difficult to control Additional heating sometimes required Can restrict electricity suppliers High CO2 emissions due to current

    generation

    Liquid Petroleum Gas

    LPG is generally less popular than oil in off-gas areas. On average it has been more expensive than oil

    but the price has tended to be less volatile.

    Pros Cons

    Suitable for off-gas areas Moderate installation costs Compatible with existing central heating

    systems

    Moderate/high running costs Future uncertainty over price Unsustainable in the longer term

    On-peak electricity

    Electrical heating can be delivered by a variety of means suiting different needs. These can deliver

    considerable heat, very quickly and are usually easily controlled. However, on-peak electricity is very

    expensive compared to all other heating methods and also has the highest associated CO2 emissions

    due to the current generation on the grid.

    Pros Cons

    Suitable for off-gas areas Low installation costs Easily controlled

    Very high running costs Very high CO2 emissions due to current

    generation