Something very basic I've been meaning to do for a good
while (as simple as using back of envelope, calculator or
website finance calculator) is to work out the real investment
cost of adding 12.5k to a mortgage to fund a well specified
heat pump system or wood pellet system with bulk storage.
Maybe my simple analysis is flawed (please correct me if so)
but I am finding that to add 12.5k to say an AIB standard
variable rate loan (and making the rash assumption that
rates won't go much upwards over the next 20-25 years).
Most analysts would say they'll go up rather than down in
any case. What I am finding is that 12.5K added to a mortgage
equates to 20-22k of total additional payment when looking
at the whole term of the mortgage (more if interest rates
increase). OK, wages will inflate too .. but....
By that reckoning if a heat pump saves 1500Euro on fuel
each year (remember ESB prices are going up too ... so
this is ambitious) then it would be more like 13.5 years
for the heat pump to pay for itself. A plumber who knows
the heatpumps told me that the circulation pump for
the collector has an approx 10 yrs lifetime. I don't know
how much it costs to replace that pump but I'm sure it
is more expensive than standard oil boiler component costs.
They say the main compressor of heatpump has more like
a 20yr lifetime but I'm not so sure of whether those lifetimes
might be shortened in the more contrary Irish climate where
demands placed on the pump can vary a lot day to day.
This looks a bit depressing to me. The investment is way
bigger when you count lending rates in (I've allowed for
SEI grants here by the way)
Am I looking at a glass half empty when I should be looking
at the glass half full. Is this pessimism or realism ??
while (as simple as using back of envelope, calculator or
website finance calculator) is to work out the real investment
cost of adding 12.5k to a mortgage to fund a well specified
heat pump system or wood pellet system with bulk storage.
Maybe my simple analysis is flawed (please correct me if so)
but I am finding that to add 12.5k to say an AIB standard
variable rate loan (and making the rash assumption that
rates won't go much upwards over the next 20-25 years).
Most analysts would say they'll go up rather than down in
any case. What I am finding is that 12.5K added to a mortgage
equates to 20-22k of total additional payment when looking
at the whole term of the mortgage (more if interest rates
increase). OK, wages will inflate too .. but....
By that reckoning if a heat pump saves 1500Euro on fuel
each year (remember ESB prices are going up too ... so
this is ambitious) then it would be more like 13.5 years
for the heat pump to pay for itself. A plumber who knows
the heatpumps told me that the circulation pump for
the collector has an approx 10 yrs lifetime. I don't know
how much it costs to replace that pump but I'm sure it
is more expensive than standard oil boiler component costs.
They say the main compressor of heatpump has more like
a 20yr lifetime but I'm not so sure of whether those lifetimes
might be shortened in the more contrary Irish climate where
demands placed on the pump can vary a lot day to day.
This looks a bit depressing to me. The investment is way
bigger when you count lending rates in (I've allowed for
SEI grants here by the way)
Am I looking at a glass half empty when I should be looking
at the glass half full. Is this pessimism or realism ??