Levelised cost of heating for air-to-air and air-to-water heat pumps and gas boilers for selected countries, and sensitivity to fuel prices, H1 2021 - H1 2022

Notes

AAHP = Air-to-air heat pump, AWHP=air-to-water heat pump. The levelised cost of heating estimates the average cost of providing 1 MWh of heating over the lifetime of the equipment, considering capital costs, basic installation costs and operating expenditures, which include fuel and regular maintenance costs. Estimates are based on medium market prices for equipment. A lifetime of 17 years is assumed for gas boilers and 18 years for air-water heat pumps. Fuel prices correspond to average residential consumer prices for electricity and natural gas, including taxes, for the first semesters of 2021 and 2022. Calculations use a discount rate of 3% and assume national household average heat demand for Italy and Sweden, and heat demand corresponding to the heating degree days of Paris, Berlin, Edinburgh and Detroit (colder climate than the national average) for France, Germany, the United Kingdom and the United States. Subsides correspond to minimum available subsidies for a household with median income. They reflect available grants, tax credits and reduced tax rates. In practice, higher subsidies may be available for low-income households or for higher investment costs or high-efficiency heat pumps, depending on the country.