Saturday, August 14, 2021

Heat pump: more expensive/false economy

 A heat pump should save you an average of $500 a year if used "properly" (1).

Heat pumps are generally efficient for 10 years (2)

So a heat pump should save you $5000 dollars over 10 years assuming electricity prices do not go up over 10 years.

But a heat pump can cost between $2000 and $6500 to purchase and install. Lets assume you get a reasonably good one for $3500 (3).

Lets assume you get annual cleaning for 10 years at $125 per year minimum, That's $1250 minimum, some quotes are almost twice as high.

In addition a professional checkup is recommended every 2 years costing $175 per checkup, totaling $875 over 10 years.

So the total cost of a heat pump over 10 years:

$3500 + $1250+ $875 = $5625

So, according to these calculations, a "good" heat pump could easily cost you $625 more than regular heating over 10 years assuming prices do not go up over 10 years and assuming nothing goes wrong with it over that period. 


1. Genesis Energy NZ

2. https://www.heatandcool.co.nz/buy-new-heat-pump/

3. https://www.stuff.co.nz/life-style/homed/living/114431369/how-much-does-it-cost-to-install-a-heat-pump


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