Important Notice
Running costs vary significantly by property, insulation level, climate, usage patterns, and electricity tariff. Figures here are compiled from Energy Saving Trust data and industry publications as general indications. Your actual costs will depend on your specific circumstances.
How Heat Pump Running Costs Work
Heat pump running costs are determined by two main factors: how much heat your home needs, and the Coefficient of Performance (COP) of your heat pump system.
The COP measures efficiency. According to manufacturers, a COP of 3 means the heat pump produces 3 kWh of heat for every 1 kWh of electricity consumed. In practice, seasonal COP (SCOP) across a full year is typically lower than peak-rated COP.
This efficiency multiplier is why heat pumps can compete on running costs despite electricity costing roughly 3-4 times more per kWh than gas. The heat pump effectively neutralises the price difference through efficiency.
The Running Cost Equation
Electricity and gas unit rates change regularly. Check current rates for accurate calculations.
Running Costs by Fuel Type Replaced
According to the Energy Saving Trust, the savings depend heavily on what heating system you're replacing. These are general indications — your results will vary.
Replacing Oil Boiler
Oil heating is typically the most expensive, so heat pumps usually show clear running cost savings. Oil price volatility also makes costs less predictable.
Replacing Gas Boiler
Gas is currently cheaper per unit. Running costs may be similar in well-insulated homes. The environmental benefit remains significant regardless.
Replacing Electric Heating
Direct electric heating (storage heaters, panel heaters) is very expensive. A heat pump uses the same fuel but 3-4x more efficiently.
Factors That Affect Your Running Costs
Property Insulation
The single biggest factor. Well-insulated homes need less heat, meaning the heat pump runs less and uses less electricity. Poor insulation increases demand and costs.
System Sizing
A correctly sized system runs efficiently. An oversized or undersized heat pump wastes energy. This is why a proper MCS survey is essential before installation.
Flow Temperature
Heat pumps work most efficiently at lower flow temperatures (35-45°C vs 60-80°C for boilers). Larger radiators or underfloor heating allow lower flow temperatures.
Electricity Tariff
Time-of-use tariffs can reduce costs by running the heat pump during cheaper off-peak hours. Solar panels paired with a heat pump can further reduce electricity costs.
Check Your Heat Pump Grant Eligibility
The £7,500 BUS grant reduces upfront costs, making heat pump economics even more favourable
Key Eligibility Factors:
- Replacing gas/oil/LPG boiler
- Property suitable for heat pump
- England or Wales
Get comprehensive property analysis with grant recommendations, savings estimates, and installer connections.
Full Property AnalysisRelated Guides
Installation Costs 2026
Full upfront cost breakdown including grants and additional expenses.
Read guide →Heat Pump vs Gas Boiler
Full side-by-side comparison of heat pumps and gas boilers.
Read guide →Improve Your Insulation
Better insulation = lower heat pump running costs. Many improvements are grant-funded.
Read guide →Get Personalised Running Cost Estimates
MCS-certified installers can provide accurate running cost projections based on your specific property.