Heat pump running costs UK 2026: the real numbers

Three numbers matter: how much heat your home needs, how efficient the pump is, and what you pay per kWh of electricity. Get those right and the running cost is predictable. Most marketing materials get the third one wrong.

The headline figures

For a typical UK home (3-bed semi, EPC C-D, decent insulation):

• Heat pump: £900-£1,400/yr at standard tariff, £600-£900/yr on a heat-pump-friendly tariff.
• Gas boiler: £950-£1,300/yr at current gas prices.
• Oil boiler: £1,400-£2,000/yr.
• Electric storage heaters: £1,800-£2,500/yr.

Heat pumps are usually cheaper than gas, dramatically cheaper than oil or electric. But the spread depends almost entirely on your tariff.

Why the tariff matters so much

A gas boiler turns 1 kWh of gas into ~0.9 kWh of heat. A heat pump turns 1 kWh of electricity into ~3 kWh of heat. So electricity has to be more than 3.3× the gas price for a heat pump to lose on running costs.

At standard variable tariff, electricity is around 28-30p/kWh and gas around 6-7p/kWh — a ratio of ~4.3×. That is right on the edge.

On a heat-pump-specific tariff (Octopus Cosy, OVO Heat Pump Plus, EDF Heat Pump Tracker), you pay 13-18p/kWh during off-peak hours when the pump runs hardest. The ratio drops to ~2.5×, and the heat pump runs about 30-40% cheaper than gas. Our guide to heat-pump tariffs walks through which one fits which household.

What pushes your bill up

• Bad install — undersized radiators or a flow temp set too high. The pump runs in inefficient cycles.
• Cold snaps — efficiency drops below freezing. Expect 10-20% higher running costs in January.
• Hot water demand — a teenager-heavy household with frequent hot showers can add £100-£200/yr.
• Standard tariff — never. If you have a heat pump, switch to a heat-pump tariff.

What brings it down

• Time-of-use tariff with the pump scheduled to run on cheap-rate hours.
• Solar PV + battery — the heat pump runs on free electricity during summer hot-water cycles, and battery-stored cheap-rate electricity overnight.
• Lower flow temperature — every 5°C drop in flow temp lifts SCOP by ~10%.
• Weather compensation — a control feature that adjusts flow temp based on outside temperature. Should be enabled by default; check yours is.

How to estimate your own running cost

Take your annual gas usage in kWh (on your bill). Divide by SCOP (use 3.0 as a conservative estimate). Multiply by your electricity rate.

Worked example: 12,000 kWh/yr gas demand → 4,000 kWh/yr electricity demand → £1,200/yr at 30p/kWh, or £640/yr at 16p/kWh on a heat-pump tariff.

The bigger picture

Running costs are roughly comparable to gas at standard tariff and 30-40% cheaper on a heat-pump tariff. Combine with solar and the running cost can drop to under £500/yr for a typical household. The £7,500 BUS grant covers most of the install premium, so the payback maths is more about whether you would have replaced your boiler anyway than whether the running cost is lower.

Run our free pre-survey check for a personalised running-cost estimate based on your property and current heating fuel.