Levelized cost of heating (LCOH) for consumers, for selected space and water heating technologies and countries

Notes

The levelised cost of heating ranges shown here are simplified estimates provided for information. The calculation includes investment costs (including VAT., excluding ancillary costs and policy support), maintenance costs and fuel costs over the lifetime of the technology. It does not account for the cooling potentially supplied by reversible heat pumps. For ground-source heat pumps, we considered the lifetime of the borehole (assumed to last 60 years), with replacement of the compressor unit every 20 years. The calculation assumes constant average dwelling space and water heat demand for each country, constant average national end-user fuel prices at 2019 values (unless specified) and a 2% discount rate. In practice, parameters such as heat demand, total investment costs, technology lifetime and efficiency vary significantly across the building fleet, making each installation a specific case.