The cost of gas has soared in recent years, leading many people to look for alternative ways of heating their homes. Rising costs and the government’s 2050 target for a carbon-free future have put heat pumps firmly in the spotlight.
Powered by electricity, they emit fewer pollutants – but are heat pumps cheaper than gas? This post looks at the cost of running a heat pump versus a gas boiler.
How do heat pumps work?
There are two types of heat pumps: air-source and ground-source.
Already widely used in some parts of Europe, air-source heat pumps extract thermal energy from the air outside and use it to heat the water that supplies your radiators and taps. It can work in temperatures as low as -25℃.
The pump runs on electricity, which produces some carbon dioxide and air pollutants, though much less than a gas boiler.
However, heat pumps are more expensive to buy and install than gas boilers. Modern boilers have been around for much longer, so the parts are cheaper to buy, and the installation process is much more straightforward.
How much does a heat pump cost to run?
Electricity is more expensive than gas, so you might assume that running a heat pump will cost you more every month. According to uSwitch, the average electricity bill in the UK is £603.72 per year compared with a gas bill of £630.20 per year (as of 1 July 2024).
| Electricity | Gas | |
| Unit rates | 24.50p per kWh | 6.24p per kWh |
| Standing charge | 60.99p per day | 31.66p per day |
Average unit rates and standing charges from 1 October to 31 December 2024 (USwitch).
In addition to fluctuating energy tariffs, you should also factor in the size of your property and how well it’s insulated. Air-source heat pumps are set at a lower temperature as they are designed to warm the space gradually.
Adequate insulation is crucial to prevent heat from escaping and maintain the temperature.
Many homes in the UK lack the proper insulation to make an air-source heat pump affordable, which is why new gas boilers are still the top sellers. Gas boilers heat the space rapidly and maintain it even as heat is escaping.
Heat pump vs gas boiler running cost
Heat pumps are much more efficient than the average gas boiler, which outweighs the cost of electricity and results in lower overall running costs. In other words, a heat pump uses less energy to produce the same amount of heat as a gas boiler.
For every kilowatt it uses, a heat pump provides three to four times as much heat (a 300 – 400% return). In contrast, A-rated condensing boilers are only 90% efficient, so for every £1 you spend running your gas boiler, 10p is lost.
Electricity is more expensive, but the uber-efficient heat pump is so good at transforming energy into heat that, with the proper insulation, it has the potential to be cheaper to run than a gas boiler.
Saving money on the cost of running a heat pump
You can bring down the cost of running a heat pump by signing up for a special heat pump electricity tariff. Companies like Octopus, EDF, and OVO Energy offer tariffs specifically for heat pumps.
It works by giving you periods during the day when you can run your heat pump for less than the standard electricity rate, saving you money on your energy bill. Be aware that prices will fluctuate on this variable tariff, but you will still get a discount on the standard rate.
According to the energy companies, powering your heat pump this way can save you hundreds of pounds on your electricity bill. But as always, read the terms and conditions closely before you sign anything!
For even greater savings, consider powering your heat pump with solar energy.
Heat pumps are compatible with solar PV panels, allowing you to harness the sun’s energy to heat and cool your home efficiently. Combining a heat pump with solar panels can significantly reduce your energy bills and carbon footprint.
The final verdict: Heat pump vs gas boiler
An efficient heat pump can be cheaper to run than a gas boiler. Electricity is more expensive than gas (at the standard rate), but the uber-efficient heat pump requires less energy to produce the same amount of heat as a gas boiler.
You can offset the price of electricity by signing up for a heat pump tariff with one of the big electricity companies or even adding solar panels to your home for a cleaner way to power your heat pump.
Heat pumps can only operate efficiently in well-insulated modern homes. If heat can easily escape from your property, a heat pump will likely cost you more than a gas boiler.
When it comes to heat loss, the UK lags behind other countries like Norway and Germany, where heat pumps are popular. To catch up, we must invest heavily in making our homes as energy-efficient as possible.
FAQs: The cost of running a heat pump
Have we missed something? You might find the answer in our FAQs.
Will a heat pump reduce my bills?
Consider the heating method you’re switching from. If your boiler is old and inefficient but your house is well-insulated, you’ll likely see a significant reduction in your energy bill if you switch to a heat pump.
When you’re working out whether a heat pump is cheaper to run than a gas boiler, take into account the size of your house and its insulation, plus the current electricity tariff.
Is electricity cheaper with a heat pump?
Many of the top energy companies offer a special heat pump tariff. It works by giving you periods of cheaper electricity during the day when you can run your heat pump. You’ll get a discount on whatever the standard variable tariff is.
Are heat pumps more expensive than gas boilers to maintain?
Air source heat pumps have fewer parts, and there is no threat to safety if anything goes wrong, which means they don’t need servicing as often. However, the cost of servicing a heat pump is more than you’d pay for an annual boiler service.
