Heat pump running costs UK 2026

Heat pumps use electricity to extract heat from the outside air or ground, typically generating 2.5–4 units of heat for every 1 unit of electricity used. Whether they are cheaper to run than your existing system depends on your current fuel type, tariff and property insulation.

How heat pump efficiency works

Heat pumps are measured by their Coefficient of Performance (COP) or Seasonal Coefficient of Performance (SCOP). A typical air source heat pump achieves an SCOP of 2.5–3.5, meaning for every 1 kWh of electricity used, it delivers 2.5–3.5 kWh of heat.

This efficiency is highest when the outdoor temperature is mild and the heating system runs at lower temperatures (e.g. underfloor heating or oversized radiators). Efficiency drops slightly in very cold weather.

Comparing running costs

Running cost comparisons depend on current energy prices, which change regularly. The general principle:

• Versus gas: Gas is currently cheaper per kWh than electricity in the UK. However, with a SCOP of 3+, a heat pump can be competitive or cheaper overall. The gap narrows as gas prices rise.
• Versus oil: Oil prices have risen significantly. A well-installed heat pump is often cheaper to run than an oil boiler in off-gas-grid properties.
• Versus LPG: LPG is one of the most expensive fossil fuels. Heat pumps are usually cheaper to run than LPG, especially in well-insulated homes.
• Versus electric storage heaters: Heat pumps are typically significantly cheaper to run than direct electric heating, including storage heaters.

Note: All comparisons assume typical 2025-2026 tariff ranges. Actual costs depend on your specific tariff, usage patterns and property. Get quotes from MCS-certified installers for accurate projections.

When does a heat pump make financial sense?

A heat pump is most likely to make financial sense when:

• Your current fuel (oil, LPG, direct electric) is expensive per unit
• Your home has good insulation or you plan to improve it
• You have space for the outdoor unit (air source) or land/water source (ground source)
• You can access a grant to offset the installation cost
• You are on or can switch to a heat pump tariff