Increasing the temperature of waste heat is crucial to enable its recovery. Vapor compression heat pumps and absorption heat transformers are the two heat upgrade technologies most commonly used for this purpose. Heat pumps have the advantage of entirely recovering the waste heat and the disadvantage of requiring electricity as input. Heat transformers need a negligible amount of electricity but reject at part of the waste heat input at low temperature. Due to these differences, the choice between the two options depends on the application. In this work, the environmental and economic performance of heat pumps and heat transformers are compared in some relevant applications. Indications about the most suitable technology are provided based on the availability of the waste heat, of the CO₂ content of the electricity and of the electricity–gas price ratio. Heat pumps perform better when the waste heat availability is limited compared to the upgraded heat requirements and has a better environmental profile when the electricity has low carbon content. Heat transformer results are often economically convenient, especially when the availability of waste heat is large.

The aim of this paper is to compare energy consumptions, CO₂ emissions, and operative costs of condensing boilers, electric vapour compression heat pumps and gas driven absorption heat pumps to provide space heating and domestic hot water. The analysis is performed for 140 m² single-family houses in five different Italian cities whose envelope features depend on the location. For each location, two different envelope conditions are considered. The first one is a non-insulated building, while the second one is the same building, but an external thermal insulation is added on vertical walls and roof. To avoid internal renovation, radiators are maintained as emission system. Combined dynamic simulations are performed to appreciate building and system interactions. A 6 second time step is set to evaluate properly interactions and the DHW profile demand. In addition, the GHP dynamic model is a grey box model experimentally validated. The results show that electric vapour compression heat pumps reach the highest non-renewable primary energy savings (>32%) compared to condensing boilers, but their operative costs are higher due to the higher specific cost of electricity in Italy. Gas driven absorption heat pumps achieve a lower consumption reduction than electric heat pumps (>22%), but they have also the minimum operative cost among the three technologies.