Heat pumps are not the solution to improving the EPC ratings of rental properties, according to energy efficiency platform epIMS.
As it stands EPCs aren’t based purely on the efficiency of a property; they are also based on the cost required to heat and power a home.
This often means that a cheaper energy source will result in a better EPC rating, which has historically favoured gas boilers due to the lower price of gas versus electricity.
Craig Cooper, chief operating officer of epIMS, said: “Whilst an Air Source Heat Pump is more environmentally friendly than an efficient gas boiler and in the right circumstances can be less expensive to run, they currently don’t improve most EPC ratings.
“As a consequence, landlords need to look carefully at what improvement measures contribute towards a C rating, which is widely expected to become mandatory by 2030.
“The good news is that there are a raft of smaller, more cost-effective changes that can be made to a property which are likely to boost an EPC rating, such as installing PV panels over internal or external wall insulation.
“For those who are looking to meet that all-important C requirement, accredited energy assessors are best qualified to advise on what will and won’t work, to avoid wasting money on costly improvements.”
In the past five years some 113,500 government-supported heat pump installations have taken place, including 9,871 in Q2 2024.
Gas boilers use 11,212 kWh in energy per year and have 85% efficiency. In comparison ground source heat pumps use 2,383 kWh and have an efficiency level of 400%, while air source heat pumps are 300% efficient and use 3,177kWh.
However it’s often cheaper to use a gas boiler, as electricity is more expensive than gas in terms of raw energy prices (£0.2450 vs £0.0624 pence per kWh) and standing charges (£0.6099 vs £0.3166 pence per day).
Therefore, according to analysis the annual bill for heating and hot water when using a ground source heat pump is £806, just £9 cheaper than a traditional gas boiler, whilst heating a home with an air source heat pump will set you back £1,001 a year on average.