Are Heat Pumps Expensive to Run?

No. Heat pumps are the cheapest way to heat a home with electricity, and they are comparable to or cheaper than mains gas. For anyone currently using oil, LPG, or electric heating, a heat pump will reduce running costs -- often dramatically. The key is understanding COP: a heat pump produces 3 kWh of heat for every 1 kWh of electricity consumed.

The confusion arises because electricity is more expensive per unit than gas. But a heat pump does not use electricity the same way an electric heater does -- it uses a small amount to move a large amount of heat. For detailed cost data, see our running costs guide.

Why COP Makes the Difference

At COP 3.0, a heat pump is already slightly cheaper per unit of heat than oil and significantly cheaper than LPG. It is marginally more expensive than gas, but that margin shrinks or reverses with a time-of-use tariff.

Real Annual Running Cost Comparisons

For a typical three-bedroom semi with 11,500 kWh annual heat demand:

The Bottom Line by Fuel Type

For detailed cost analysis, see our running costs guide. For a broader cost picture including installation, see our heat pump cost guide.

Why Some People Think Heat Pumps Are Expensive to Run

The electricity-to-gas price ratio (approximately 3.8:1) looks terrible if you assume a heat pump uses electricity like an electric heater. But COP 3.0 bridges most of that gap. Other reasons include poorly installed systems with low COPs, comparisons against brand-new boilers (rather than the old one being replaced), and not using time-of-use tariffs. Our installation guide explains what proper installation looks like.

How to Keep Heat Pump Running Costs Low

1. Get a time-of-use tariff: The single most impactful thing you can do. Reduces costs by 20-35%
2. Optimise flow temperature: Ensure weather compensation is enabled. Aim for the lowest flow temperature that keeps your home comfortable
3. Improve insulation: Every improvement reduces heat demand and improves efficiency
4. Use the system correctly: Let it run continuously at low output. Setting the thermostat 1°C lower saves 8-10%
5. Regular servicing: An annual service (£100-£150) ensures the system maintains its efficiency

If you have solar panels, running the heat pump during daytime generation hours further reduces costs.

What About the Future?

Electricity levy rebalancing, increasing renewable generation, smarter tariffs, and heat pump efficiency improvements all point towards heat pump running costs becoming relatively cheaper. For a full future outlook, see our guide on whether heat pumps are worth it.

Frequently Asked Questions

How much does it cost to run a heat pump per month?

For a typical three-bedroom home, expect £50-£110 per month averaged across the year.

Are heat pumps cheaper to run than gas?

At current prices, roughly even. On a TOU tariff, the heat pump typically costs slightly less. See our heat pump vs gas boiler guide.

Will my electricity bill go up if I get a heat pump?

Yes, by typically £600-£1,000 per year. However, your gas/oil/LPG bill disappears entirely.

What is the cheapest way to run a heat pump?

Time-of-use tariff, weather compensation at low flow temps, good insulation, and smart thermal mass management. This can reduce running costs by 25-40%.

Are ground source heat pumps cheaper to run?

Yes, typically by 15-25%. See our ground source guide.

Do heat pumps use a lot of electricity in winter?

More than in summer -- roughly 40-45% of annual consumption in December-February. But far less than electric heating for the same output. Get a personalised estimate with our suitability checker.