Heat pumps are increasingly being promoted as the future of home heating in the UK - but are they actually cheaper to run than what you have now? The honest answer is: it depends. Here's a clear breakdown of the factors that determine whether a heat pump will save you money.
Why Heat Pumps Are Efficient
The key difference between a heat pump and a conventional heater is that a heat pump doesn't generate heat - it moves it. By extracting heat energy from outdoor air or the ground and transferring it indoors, a heat pump can deliver significantly more heat energy than the electrical energy it consumes.
This ratio is expressed as the Coefficient of Performance (COP). A COP of 3 means the system delivers 3kW of heat for every 1kW of electricity used. High-performing modern systems can achieve COPs of 4 or above in mild conditions - something no gas boiler, oil heater, or direct electric heater can match. For context, a standard electric heater has a COP of exactly 1.
Heat Pump vs Gas: The Running Cost Comparison
Electricity costs more per kWh than gas in the UK - currently around 24p/kWh for electricity versus approximately 6p/kWh for gas. This means a heat pump needs to achieve a COP of around 4 just to match the running cost of a gas boiler.
Modern air source heat pumps typically achieve COPs of 2.5-4 depending on outdoor temperature and system design. In a well-insulated home with correctly sized radiators or underfloor heating, running costs can be comparable to or lower than gas. In a poorly insulated home, the advantage narrows considerably.
If you don't have access to mains gas - common in rural UK properties - a heat pump is almost always cheaper to run than oil, LPG, or direct electric heating.
Types of Heat Pump
Air Source Heat Pumps (ASHP)
Air source heat pumps extract heat from outdoor air, even at temperatures as low as -15C. They are the most common type in the UK, with lower installation costs than ground source systems and no requirement for land excavation. They work well in the UK's moderate climate and are the type most commonly supported by government grant schemes.
Ground Source Heat Pumps (GSHP)
Ground source systems extract heat from the ground via buried pipework (a ground loop). Ground temperatures are more stable than air temperatures, meaning ground source systems typically achieve higher and more consistent COPs than air source. However, installation costs are significantly higher due to the groundwork required, and you need sufficient outdoor space for the ground loop.
Key Factors That Affect Running Costs
- Home insulation: Heat pumps work best in well-insulated homes. Poor insulation forces the system to run longer and at higher flow temperatures, reducing efficiency. Improving insulation before installing a heat pump is strongly recommended.
- System design: Heat pumps work most efficiently at lower flow temperatures (35-45C) over longer periods. They pair best with underfloor heating or oversized radiators designed for low-temperature operation.
- Pipework insulation: Well-insulated refrigerant pipework reduces heat loss between the outdoor and indoor units. Armaflex EVO pipe insulation and K-FLEX ST insulation tape are suitable for this application.
- Regular maintenance: Dirty filters and coils reduce efficiency. Annual servicing keeps the system performing at its rated COP.
Upfront Costs and Available Grants
Heat pumps have higher upfront installation costs than gas boilers - typically £8,000-£15,000 for an air source system including installation. However, the UK government's Boiler Upgrade Scheme currently offers grants of £7,500 for air source heat pumps in eligible properties, significantly reducing the net cost.
Over a 15-20 year lifespan, lower running costs and minimal maintenance requirements mean the total cost of ownership is often competitive with gas central heating - particularly as gas prices continue to rise.
We Stock Daikin Heat Pumps
We supply the full Daikin heat pump range, including air source systems for domestic and light commercial applications. Daikin is one of the world's leading heat pump manufacturers, with a strong track record for efficiency and reliability in the UK climate. Contact us for availability, specifications, and pricing - or check back as we add the full range to the site shortly.
Frequently Asked Questions
Are heat pumps worth it in the UK?
For most homes - particularly those without mains gas, or with good insulation - yes. The combination of high efficiency, government grants, and rising gas prices makes heat pumps an increasingly compelling choice.
Do heat pumps work in cold weather?
Yes. Modern air source heat pumps operate effectively down to -15C or below. Efficiency does reduce in very cold conditions, but the systems are designed to handle UK winters without issue.
How long does a heat pump last?
A well-maintained heat pump typically lasts 15-20 years. Ground source systems often last longer due to the stability of ground temperatures and lower stress on the compressor.
What maintenance does a heat pump need?
Annual servicing by a qualified engineer, regular filter cleaning, and periodic checks of refrigerant levels and pipework insulation. For more detail, see our HVAC winter preparation guide.
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