Heat Pump for Your Central Heating at Home in Spain – Is it Worth it?

Before heat pumps entered the Spanish market in 2006 there was a limited range of options for powering a central heating system.

In most cases, you had a choice between fossil fuels (like gas and heating oil) or a cold house.

But what about in 2024?

The price of gas bottles (bombonas) keeps on rising. The cost of filling a gas tank comes with increasing extra costs like transport. And then there’s the complaint we hear a lot in Spain: gas cutting out at the worst possible time.

This year, more and more people are asking me about heat pumps for central heating.

The most common questions are:

• Can a heat pump replace a gas boiler?
• Is a heat pump cost-effective?
• What can I use a heat pump for?

Most homeowners are considering replacing their gas boiler with a heat pump system, so I am assuming this is your situation to.

For other questions please request a call-back so I can help provide answers.

What Is a Heat Pump?

When we say ‘heat pump’ in Spain, we are talking about an ‘air source heat pump’.

It is electrical device that has a high efficiency to heat your home – when installed correctly.

But what does high-efficiency really mean?

As an example, a conventional electric heater needs 1 kW of electrical energy to produce 1 unit of heat energy. 

A heat pump can do better.

A heat pump can turn 1 kW of electrical energy into as much as 5 units of heat energy. It does this by using heat energy from the outside air. This is why it’s called an ‘air-source’ heat pump.

If it sounds complex, the technology is much more common that you think.

Your fridge uses heat pump technology – just in reverse.

Nearly all air-conditioning units in Spain also use a heat pump. For example, the efficiency rating of an AC is related to the amount of heating or cooling energy they can produce from a single kW of energy.

Heat Pump Coefficient of Performance (COP)

A heat pump’s efficiency is measured based on a rating called the ‘coefficient of performance’ or COP.

A heat pump with a COP of 3.8 is able to produce 3.8 units of heat energy per unit of electrical energy.

You will find any new AC has an energy efficiency rating between A-G in Spain.

An AC unit with an A rating will produce the highest heating or cooling power for the lowest consumption of electricity possible. If installed correctly, this means you are saving money in your electricity bills.

The Two Kinds of Heat Pump

There are some dividing lines in the world of heat pumps:

• Ground-source heat pumps
  These are common in the United States where they utilise heat energy from the ground, but they’re very rare in Spain.
  
• Air-source heat pumps
  These are common in Spain and utilise heat energy from the air.

There is another crude dividing line too:

• Air-to-air heat pumps
  A heat pump unit that heats or cools the air inside a property (i.e. an AC unit).
  
• Air-to-water heat pumps
  A heat pump unit that heats up water for central heating or domestic hot water.

In reality, however, there are heat pumps which can both heat both air and water at the same time (see below).

This is why the following is the most important dividing line in the world of heat pumps:

• MonoBlock
  A single heat pump unit. This is the most common heat pump we are installing to heat water for underfloor heating, radiators, domestic hot water and similar central heating systems.
  
• BiBlock
  This heat pump system is split in two. There is a unit outside the property with a compressor and then an internal unit – much like the common split-type AC with a compressor outside and a distribution system inside. It’s possible to add a heat exchanger unit inside the property to heat both air and water.

This covers the main heat pump distinctions…

But there is one extremely important dividing line in the world of heat pumps. If you get this next bit wrong, your entire system could be a waste of money.

Can a Heat Pump Replace a Gas Boiler in a Central Heating System?

Yes, it can.

In theory you wouldn’t need to change any other part of the central heating system – just take out the gas boiler and connect up a heat pump.

But the kind of heat pump you need depends on two important questions:

• Does your central heating system use radiators?
• Does your central heating system use underfloor heating?

For radiators to heat up your home, water needs to circulate at 65 °C or higher through the system.

With an underfloor heating system, water needs to circulate around 37-40°C.

This has been a cause of concern in the UK. There was a rush to install heat pumps, and then many homeowners found their radiators were lukewarm at best. The solution was to install over-sized radiators at an extra cost – and this has damaged the reputation of heat pumps.

But you can now find heat pumps on the market capable of both heating water to 80°C and heating domestic hot water to a degree that doesn’t burn.

This is incredibly important to understand.

And it’s the main reason why I want to offer you a chance to talk to me and the team about the best option for you.

Are Heat Pumps Cost-Effective?

Here’s a real example from a heat pump installation we completed in the Costa Blanca North in Spain before the winter of 2023-2024. 

Our client used to spend €3,000 a year on gas for central heating and domestic hot water.

The replacement heat pump system cost €12,000 euros (equipment + installation).

The heat pump cut out the homeowner’s consumption of gas. But it also added €300 euros a month to his electricity bill for four months over the winter period. This worked out as an extra electricity cost of €1,200 annually.

To sum up…

This client went from spending €3,000 a year on gas to spending €1,200 a year on electricity to get the same results.

That’s an immediate saving of €1,800 per year. 

Without accounting for energy inflation, the homeowner is looking at an annual return on investment of 15% and a payback period of 6-7 years.

What Are the Other Benefits of a Heat Pump Heating System?

The client in this example had 5 more good reasons to install a heat pump.

1. Avoiding One-Time Payments of €3,000

This client had an external gas tank and it cost €3,000 every time it needed refilling. 

He found it easier to pay once for the heat pump heating system, and then only have to worry about an extra €300-400 per month in electricity over the winter period.

2. No Inconvenient Outages

The gas tank frequently ran out at inconvenient times. Sometimes, he wasn’t at home but had guests who suddenly had no hot water, hot showers or heating. 

It was becoming a stressful situation that he could do without.

A heat pump system avoids the problem entirely.

3. Less Maintenance

His existing boiler was already old and needed replacing. 

Instead of paying €1,500-4,000 on a new gas boiler, it made sense to increase his budget and get a heat pump heating system at home that would pay for itself in savings.

The added benefit is less maintenance. Modern heat pumps have an estimated lifespan of 15-20 years, while a regular gas boiler can last for 10-15 years.

A heat pump is less prone to problems and breaking down as well.

4. The Rising Cost of Gas

The cost of liquified natural gas (LNG) is rising and rising in Spain. And it will only keep going up.

During the last crisis in January 2022 the price of gas hit a price 12x more expensive than in January 2021. Any bottlenecks in supply will only cause the price of gas to rise once again.

Meanwhile, Spain is increasingly relying on renewable energy to produce electricity. In 2023, Spain became the most solar-powered nation on earth as the installed PV solar capacity is equivalent tp 19% of national consumption.

If the price of gas spikes in the future the price of electricity shouldn’t directly follow.

The cost of gas from January 2021 through to the energy crisis of January 2022. CNMC.

5. Installing Solar 

The biggest deal-breaker for the client was his plan to install solar later in 2024.

Being able to run the heat pump off his own solar energy would reduce electricity costs and help him reach break even in 4-5 years rather than 6-7 years.

A home solar energy system means greater protection from energy inflation.

The added benefit of solar alongside a heat pump is also environmental. 

Switching over from gas would mean a huge reduction in carbon emissions, which is important for many homeowners who want to play a part in the energy transition.

Will a Heat Pump Heating System Make Sense for You?

For the client in this example…a heat pump made sense.

This was because the heat pump installation saw an annual return on investment of 15% and suited many lifestyle factors.

But will a heat pump make sense for you?

Given the surge in questions on this topic, I am offering anyone interested the opportunity for a short telephone call to discuss your current system and potential options.

Many times, I will tell someone that the heat pump isn’t the best choice.

To get answers to your questions quickly please leave your details below. I will usually phone you within 24 hours (week days).