Heat pump payback: how to calculate it

Heat pump payback is not a single figure that applies to every house. It depends on the price of the equipment and installation, the subsidy, what you heat with today and energy prices. When replacing a gas boiler it can be long, while elsewhere something other than savings may decide. It is therefore better to calculate it for your own house.

How to calculate it

1. Additional investment: the price of the heat pump with installation minus the subsidy, if you are eligible. In a new build, also deduct what another option would cost, such as a boiler and connection.
2. Annual saving: your current heating and hot water costs minus the estimated costs with a heat pump.
3. Payback: the additional investment divided by the annual saving.

The result is an estimate. Energy prices change, so it is worth comparing several scenarios.

What affects the result most

• the heat loss of the house and the heating water temperature,
• your current heat source and its actual consumption,
• the correct output and control settings,
• the electricity tariff, see the article Heat pump electrical connection: breaker, supply and tariff,
• whether you have photovoltaics,
• the subsidy and meeting its conditions, see the Subsidies page.

New build

In a new build you are not comparing a replacement, but a decision during construction. The calculation also includes the fact that without gas there is no connection or flue. A house under construction is not eligible for the Zelená domácnostiam II contribution, so do not rely on the subsidy in the calculation. Read more on the Heat pump for a new build page.

Replacing a gas boiler

If you have a working gas boiler, the financial payback may be long and may not be the main reason for changing. The end of the boiler’s life, summer cooling or less dependence on gas may also decide. You will find a comparison in the article Heat pump or gas boiler: a comparison.

What to watch out for

• Flat percentage savings say nothing without data about your house.
• Cheaper equipment does not pay off if it does not suit the house or the quote has a different scope. See how to compare quotes.
• Poor design increases costs, especially when the electric backup heater switches on often. See the article Heat pump heating costs: what increases and reduces them.

What to prepare

• your energy consumption over recent years,
• your current energy price and tariff,
• the project or energy performance certificate, if you have one,
• the type of heating and the number of people in the household.

Send us these details and we will prepare a Daikin heat pump design with an estimate of running costs for your house.