Are Heat Pumps Cheaper Than Gas?

Article • Running Costs

Are Heat Pumps Cheaper Than Gas?

One of the biggest questions homeowners ask is whether heat pumps are cheaper to run than gas boilers. The answer depends on electricity prices, system efficiency, and how the home is heated.

Why the comparison isn’t simple

Gas is currently cheaper per unit of energy than electricity in the UK. However, heat pumps are significantly more efficient than gas boilers.

A modern gas boiler typically converts around 90% of gas energy into heat.

Heat pumps can produce 3–4 units of heat for every unit of electricity they use.

Typical efficiency comparison

Heating system Typical efficiency
Gas boiler ~90%
Heat pump (SCOP 3) 300%
Heat pump (SCOP 4) 400%

SCOP represents seasonal efficiency over an entire heating season.

Example cost comparison

To illustrate the difference, consider typical UK energy prices.

Energy source Example cost per kWh of heat
Gas boiler ~7–9p
Heat pump (SCOP 3) ~9–11p
Heat pump (SCOP 4) ~7–8p

This means running costs can sometimes be similar depending on efficiency and tariffs.

When heat pumps can be cheaper

  • Homes with good insulation
  • Systems running low flow temperatures
  • Smart electricity tariffs
  • Homes replacing oil, LPG or electric heating

When gas may still be cheaper

  • Poorly insulated homes
  • High flow temperature systems
  • Older radiator systems not designed for heat pumps

Future energy price changes

Energy prices and policy changes may affect the comparison over time.

Many analysts expect electricity to gradually become relatively cheaper compared with gas as the energy system decarbonises.

Key takeaway

Heat pumps can sometimes cost similar to gas to run, but system design and efficiency have a major influence on the final outcome.

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