What should be included in this category?
Investment cost of the technology and installation of a heat pump. Note, all costs are in KW of heat delivered net of conversion losses.
What should be excluded from this category?
Non-market costs, such as hassle costs
How are these costs used in the 2050 Pathways model?
Domestic - Assume an average installation size of 14KW per household and use the investment cost per kw to derive a cost of a heat pump per household. Please see: IX.a Domestic space heating and hot water costs for the full methodology
Commercial - Multiply the investment cost per kw by the load factor (typical annual average output) then uprate to give a cost per TWh (annual) of meeting commercial heating demand. This figure is then multiplied by 2 to account for peak load. Please see: IX.C COMMERCIAL HEATING AND COOLING COSTS for the full methodology