Home Heat Pump Guide

Heat Pump vs Electric Storage Heaters

If you heat your home with electric storage heaters, you are almost certainly paying more for heating than anyone else on your street. Electric storage heating is the most expensive common heating method in the UK — significantly more costly than gas, oil, LPG, or any other fuel. And it provides some of the least comfortable heat: too warm in the morning, stone cold by evening.

Switching to a heat pump transforms this picture. A heat pump uses electricity too, but it uses it three times more efficiently, cutting your heating bills by 60% to 70%. This guide provides a complete comparison so you can see exactly what the switch would mean for your home, your comfort, and your wallet.

How Storage Heaters Work (And Why They Are So Expensive)

Electric storage heaters contain ceramic bricks that are heated overnight using cheaper off-peak electricity (Economy 7 or Economy 10 tariffs). During the day, the stored heat gradually releases into the room. Some models have fans to distribute heat more evenly, and modern versions have better insulation to retain heat longer.

The fundamental problem is efficiency. Storage heaters convert electricity to heat at a ratio of 1:1 — one unit of electricity produces one unit of heat. This is 100% efficient in physics terms, but it means you are paying the full electricity rate for every unit of heat.

Even on an Economy 7 tariff, where off-peak electricity costs around 10-12p per kWh, the effective cost of heat from storage heaters is 10-12p per kWh. During peak hours (if you use boost heating), it rises to 30p+ per kWh. Most storage heater users end up paying an average of 15-22p per kWh of heat when blended across off-peak and peak usage.

How a Heat Pump Is Different

A heat pump also runs on electricity, but it does not convert electricity directly into heat. Instead, it moves heat from the outside air into your home, using a refrigeration cycle. For every 1 kWh of electricity consumed, a heat pump delivers 2.5 to 3.5 kWh of heat.

This means the effective cost per unit of heat is:

  • Storage heaters (off-peak): 10-12p per kWh of heat
  • Storage heaters (peak): 25-30p per kWh of heat
  • Heat pump (COP 3.0, standard rate): 8.17p per kWh of heat
  • Heat pump (COP 3.0, heat pump tariff): 5p per kWh of heat

A heat pump at standard electricity rates is already cheaper than storage heaters on off-peak rates. With a heat pump tariff, it is roughly half the cost. The savings are dramatic.

Running Cost Comparison

Worked Example: Two-Bedroom Flat

Annual heat demand: 8,000 kWh

Electric storage heaters:

  • Blended electricity cost (70% off-peak at 11p, 30% peak at 28p): approximately 16p per kWh
  • Annual cost: 8,000 × £0.16 = £1,280 per year

Heat pump (COP 3.0):

  • Electricity required: 8,000 ÷ 3.0 = 2,667 kWh
  • At standard rate (24.50p): £653 per year
  • At heat pump tariff (15p): £400 per year

Annual saving: £627 to £880

Worked Example: Three-Bedroom Semi-Detached

Annual heat demand: 12,000 kWh

Electric storage heaters:

  • Annual cost at blended 16p/kWh: £1,920 per year

Heat pump (COP 3.0):

  • Electricity required: 4,000 kWh
  • At standard rate: £980 per year
  • At heat pump tariff: £600 per year

Annual saving: £940 to £1,320

For a three-bedroom home, switching from storage heaters to a heat pump saves roughly £1,000 per year. Over the 20+ year lifespan of the heat pump, that is £20,000+ in total savings.

Worked Example: Four-Bedroom Detached

Annual heat demand: 16,000 kWh

Storage heaters: £2,560 per year

Heat pump: £1,307 (standard) or £800 (heat pump tariff)

Annual saving: £1,253 to £1,760

The larger the property, the greater the absolute savings. For detailed calculations tailored to your home, use our heat pump calculator.

Installation Cost and Payback

The Challenge: Full System Installation

Homes with storage heaters typically do not have a central heating system — there are no radiators, no pipework, and no hot water cylinder (hot water is usually from an immersion heater in a small tank, or an instantaneous electric shower).

Switching to a heat pump means installing an entire wet central heating system from scratch:

  • Heat pump outdoor unit
  • Hot water cylinder (typically 200-250 litres)
  • Radiators in every room (or underfloor heating if desired)
  • Pipework throughout the property
  • Controls and thermostats

This is more extensive (and more expensive) than replacing an existing boiler with a heat pump, where radiators and pipework already exist.

Installation Cost

  • Before grant: £12,000 to £18,000 (depending on property size and number of radiators)
  • After BUS grant (£7,500): £4,500 to £10,500

Yes, the upfront cost is significant. But look at the payback:

  • Two-bedroom flat (net cost £4,500, saving £750/year): Payback in 6 years
  • Three-bedroom semi (net cost £6,500, saving £1,000/year): Payback in 6-7 years
  • Four-bedroom detached (net cost £10,500, saving £1,500/year): Payback in 7 years

After the payback period, every year is pure savings. With a heat pump lasting 20+ years, you could save £10,000 to £20,000 over the remaining life of the system after recovering your investment.

Comfort: Night and Day Difference

This is where the improvement is most dramatic and most appreciated by homeowners who make the switch.

Storage Heater Problems

  • Too hot in the morning: Storage heaters release most of their heat in the first few hours, often making rooms uncomfortably warm when you least need it
  • Too cold by evening: By late afternoon and evening — when you actually want to be warm — the stored heat has largely dissipated
  • No room-by-room control: Each storage heater has basic input/output controls, but achieving consistent temperatures across the home is virtually impossible
  • Dry heat: Direct electric heat can feel dry and uncomfortable compared to wet radiator systems
  • Expensive boost heating: When you run out of stored heat, you resort to peak-rate panel heaters or plug-in heaters — the most expensive way to heat a room

Heat Pump Advantages

  • Consistent warmth: The heat pump maintains your set temperature continuously, whether it is 7am or 10pm
  • Room-by-room control: Thermostatic radiator valves (TRVs) on every radiator let you set different temperatures in different rooms
  • Programmable: Set your preferred schedule — the heat pump adjusts output to match demand, maintaining comfort efficiently
  • Comfortable radiant heat: Wet radiator systems provide gentle, even warmth that most people find more comfortable than direct electric heat
  • Hot water on demand: A properly sized cylinder provides reliable hot water at good pressure — a significant upgrade from a small immersion tank

Verdict on comfort: The improvement from storage heaters to a heat pump with radiators is one of the most dramatic upgrades in home heating. Almost every homeowner who makes this switch reports a transformative improvement in comfort.

BUS Grant Eligibility for Storage Heater Homes

A common question: do homes with electric storage heaters qualify for the BUS grant? Yes. The scheme covers properties replacing "existing fossil fuel heating systems" — and importantly, electric storage heaters are also eligible. Ofgem classifies electric heating as an eligible existing system for BUS purposes.

This means the full £7,500 is available to you, making the switch significantly more affordable. Your MCS-certified installer applies on your behalf.

Practical Considerations

Electrical Supply

Homes with storage heaters have an electricity supply designed for high consumption. Economy 7 meters are standard, and the electrical supply is often robust (100A). This is typically more than adequate for a heat pump, which draws far less power than storage heaters.

However, your meter may need updating to a smart meter, and your tariff will need changing from Economy 7 to a standard or heat pump-specific tariff. Your energy supplier can arrange this.

Disruption During Installation

Installing a full wet central heating system is more disruptive than a simple boiler swap. Expect:

  • Pipework running through the property (under floors, through walls)
  • Radiators fitted in each room
  • Some making good (filling holes, repainting) after pipework is installed
  • Typically five to seven working days for a complete installation

This is a significant project, but the result is a complete, modern central heating system that will serve you for 20+ years.

Removing Old Storage Heaters

Storage heaters are heavy (50-100 kg each) and contain ceramic bricks. Most heat pump installers will remove old storage heaters as part of the project or can arrange removal separately. Disposal costs are typically included in the installation quote.

Once removed, you reclaim significant wall space in every room — storage heaters are bulky units that restrict furniture placement and room layout.

Is It Worth the Investment?

Unequivocally yes, for almost every storage heater household. The numbers speak for themselves:

  • Annual savings: £600 to £1,500+ depending on property size
  • Payback period: 5 to 8 years after the BUS grant
  • Lifetime savings: £10,000 to £25,000+ over the heat pump's 20+ year lifespan
  • Comfort improvement: Transformative — consistent warmth, room control, better hot water
  • Property value: A wet central heating system significantly increases property value, particularly for flats and homes currently valued lower due to electric heating

In fact, the property value uplift alone can exceed the net installation cost. Estate agents consistently report that homes with central heating sell for more and sell faster than those with storage heaters.

How to Get Started

  1. Check suitability: Use our suitability checker to confirm your property can accommodate a heat pump
  2. Get quotes: Request quotes from MCS-certified installers — specify that you currently have storage heaters so they quote for the full system
  3. Compare and choose: Get at least three quotes and compare specifications, not just price
  4. Apply for the grant: Your chosen installer applies for the BUS grant on your behalf
  5. Schedule installation: Plan for five to seven days of work
  6. Enjoy the results: Consistent warmth, lower bills, and a modern heating system

Frequently Asked Questions

Can I get the BUS grant if I have electric storage heaters?

Yes. Electric storage heaters are classified as an eligible existing heating system under the Boiler Upgrade Scheme. You qualify for the full £7,500 grant.

How much will I save on my electricity bill?

Most storage heater households save 60-70% on their heating costs by switching to a heat pump. For a typical three-bedroom home, that is £900 to £1,300 per year.

Will I need a new electricity meter?

You will likely need to switch from an Economy 7 meter to a smart meter. This is free and arranged through your energy supplier. You may also want to switch to a heat pump tariff for the best rates.

Is the installation very disruptive?

More so than a simple boiler replacement, because pipework and radiators are being installed for the first time. Expect five to seven days of work. Good installers minimise disruption and make good any disturbance to walls and floors.

Will a heat pump work in a flat?

Yes, heat pumps can be installed in flats, though there are additional considerations around placing the outdoor unit (balcony, ground-level area, or wall-mounted). You may need permission from your freeholder or management company. Many flats with storage heaters are excellent candidates for heat pumps.

What about the hot water — will it be better?

Almost certainly. Most storage heater homes have small immersion tanks (30-50 litres) that provide limited hot water. A heat pump system includes a 170-250 litre unvented cylinder delivering hot water at mains pressure — a significant upgrade in both capacity and performance.