We have had a heat pump for 16 years. It has just reached the end of its life.
Before it was installed, a lot of work had to be done to bring the house's insulation up to scratch.
Prior to having it, the house was (poorly) heated by a storage heater in the kitchen and a coal fire with backboiler in the lounge which provided hot water and heated two or three radiators upstairs. Oh, and the built-on downstairs bathroom/toilet had a tiny electric dimplex heater on the wall that struggled to raise the temperature in there above 8° in winter.
Our energy costs dropped dramatically once the heat pump (air- source) was up and running, and the whole house was so much warmer.
The electricity bill alone was lower than it had been previously, before even taking the saving on coal into account. (There is no gas in our village, so that was never an option.)
The system was entirely trouble-free for about 12 years, but has had many repairs over the last 4 years, often leaving us with no heat or hot water for weeks at a time while waiting for the repairs to be carried out. Now, after 16 years, it has reached its end and is due to be replaced in the next month or so.
But would I recommend this system? Not if you own your own home and want to save money.
We don't own our house, and didnt have to pay for any of the associated costs: the system itself; installation, servicing; replacement parts/repairs. Once those things are taken into account, I am not convinced that there would have been any savings whatsoever.
That said, some energy supplier offer cheap deals to some of their customers - our neighbour is about to have a heat pump put in for not much over £4,000. Personally though, I would still advise anyone to think carefully about it unless money is simply not an issue.