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.
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Why COP Makes the Difference
| Heating System | Cost Per kWh of Heat (October 2026) |
|---|---|
| Electric heater (COP 1.0) | 26.32p |
| Oil boiler (90%) | ~12.7p |
| Below-average heat pump (COP 2.5) | ~10.5p |
| Gas boiler (90%) | ~8.9p |
| Average heat pump (COP 3.0) | ~8.8p |
| Good heat pump (COP 3.5) | ~7.5p |
Based on the Ofgem price cap (1 October 2026 to 31 December 2026: 26.32p electricity, 7.97p gas per kWh) and heating oil at about 11.4p per kWh (around 117p per litre, BoilerJuice average, October 2026; oil is not price-capped and is volatile). At COP 3.0, a heat pump is much cheaper per unit of heat than oil and marginally cheaper than gas; below about COP 3 it costs more than gas. A heat pump tariff improves the picture further. LPG is not shown because prices vary widely by supplier: divide your last delivery price per litre by about 7 kWh per litre (and by your boiler efficiency) to compare.
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.
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Why Some People Think Heat Pumps Are Expensive to Run
The electricity-to-gas price ratio (approximately 3.3:1 at the October 2026 cap) looks terrible if you assume a heat pump uses electricity like an electric heater. But a COP of 3.0 or more bridges 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
- Get a time-of-use tariff: Often the single most impactful thing you can do. Savings depend on the tariff and your region, so check the supplier's current rates (last reviewed October 2026)
- Optimise flow temperature: Ensure weather compensation is enabled. Aim for the lowest flow temperature that keeps your home comfortable
- Improve insulation: Every improvement reduces heat demand and improves efficiency
- Use the system correctly: Let it run continuously at low output. Setting the thermostat 1°C lower saves 8-10%
- 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?
On the standard capped electricity rate, a heat pump at a seasonal efficiency (SCOP) of 3.0 or above costs slightly less to run than a 90% efficient gas boiler: about £1,009 a year at SCOP 3.0 and £946 at SCOP 3.2, against about £1,018 for gas, for a typical semi (October 2026 cap). Below SCOP 3 it costs more. A heat pump tariff widens the gap. See our heat pump vs gas boiler guide.
Will my electricity bill go up if I get a heat pump?
Yes, by typically about £850-£1,100 per year for a three-bedroom home on the standard capped rate. 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.
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About this guide: This article addresses the most common concern about heat pump costs -- whether they are expensive to run. The answer depends on your current fuel type, system efficiency, and electricity tariff. For air source heat pumps in well-insulated homes, running costs are comparable to gas and dramatically lower than alternatives. Combining with solar energy can reduce costs further still.