One of the first questions people ask is, “How much does a heat pump cost to run?” The answer depends on your home, your insulation, the outside temperature and the price of electricity. A well-designed heat pump can often heat a home more efficiently than traditional electric heating and, in many cases, can compete with gas heating when installed correctly.
Unlike a gas or oil boiler, a heat pump does not create heat by burning fuel. Instead, it moves heat from the outside air, the ground or a nearby water source into your home. Because of this, it can produce several units of heat for every unit of electricity it uses.
How Efficient Are Heat Pumps?
Heat pump efficiency is measured using the Coefficient of Performance (COP).
For example:
- COP of 2.5 = 1 kWh of electricity produces 2.5 kWh of heat.
- COP of 3.5 = 1 kWh of electricity produces 3.5 kWh of heat.
- COP of 4.5 = 1 kWh of electricity produces 4.5 kWh of heat.
The higher the COP, the lower the running costs.
The COP varies throughout the year. It is usually highest during mild weather and lower during very cold weather because the heat pump has to work harder.
Typical Running Costs
Every home is different, but as a rough guide:
| Home Size | Estimated Annual Electricity for Heating* |
|---|---|
| Small well insulated home | Lower than average |
| Average family home | Moderate |
| Large or poorly insulated home | Higher than average |
*Actual costs depend on insulation, heating settings, occupancy, electricity prices and the efficiency of the heat pump.
Rather than relying on averages, our Heat Pump Running Cost Calculator will estimate costs based on your own property.
What Affects Running Costs?
Insulation
Insulation has one of the biggest effects on running costs.
Homes with:
- Loft insulation
- Cavity wall insulation
- Double or triple glazing
- Draught proofing
will generally require less heating and therefore cost less to run.
Flow Temperature
Heat pumps are most efficient when heating water to lower temperatures.
This is why larger radiators or underfloor heating often work well with heat pumps. They can provide the same comfort while allowing the heat pump to run more efficiently.
Outside Temperature
When the weather becomes colder, the heat pump has to extract more heat from the outside environment.
Modern heat pumps continue to work well below freezing, but they generally become less efficient as outdoor temperatures fall.
Electricity Prices
Because heat pumps use electricity, your energy tariff makes a significant difference.
Some suppliers offer tariffs specifically designed for heat pump owners, with lower prices during certain times of the day.
Air Source vs Ground Source Running Costs
Ground source heat pumps generally achieve higher efficiency because the ground temperature stays relatively constant throughout the year.
Air source heat pumps are less expensive to install but their efficiency changes more with the weather.
Both systems can offer low running costs when designed correctly.
Ways to Reduce Running Costs
There are several ways to improve efficiency:
- Improve insulation before installing a heat pump.
- Set the thermostat to a steady comfortable temperature.
- Avoid repeatedly turning the heating on and off.
- Service the system regularly.
- Keep outdoor units free from leaves and debris.
- Choose the correct size heat pump for your property.
A properly sized heat pump will usually be more efficient than one that is too large or too small.
Common Myths
“Heat pumps are expensive to run.”
Not necessarily. Running costs depend on installation quality, insulation and electricity prices. A well-designed system can be economical to operate.
“Heat pumps stop working in winter.”
Modern systems are designed to operate in freezing temperatures and many continue working well below -15°C.
“They only work with underfloor heating.”
No. Many existing homes successfully use heat pumps with radiators, although larger radiators may improve efficiency.
Calculate Your Own Running Costs
Every property is different.
Rather than relying on general estimates, use our Heat Pump Running Cost Calculator to estimate:
- Annual electricity use
- Estimated heating costs
- Monthly running costs
- Potential savings compared with your current heating system
The calculator uses information about your home to provide a more personalised estimate than generic online figures.
Frequently Asked Questions
Is a heat pump cheaper to run than gas?
It depends on your home’s insulation, the efficiency of the heat pump, electricity and gas prices, and how the system is installed. In many well-insulated homes, a correctly designed heat pump can provide competitive running costs.
Does a heat pump use electricity all the time?
The system uses electricity whenever it is heating your home or hot water, but the amount of electricity depends on how much heat is required and the efficiency of the heat pump.
Will I save money?
Some homeowners reduce their heating bills, while others may see similar or slightly higher costs if their home is poorly insulated or the system is not designed correctly. Looking at both installation costs and long-term running costs gives a more complete picture.
Our Recommendation
The best way to minimise running costs is to focus on the whole home rather than the heat pump alone. Improving insulation, choosing the correct system size and using suitable heat emitters can have just as much impact as the heat pump itself.
Our calculators can help you estimate your heating requirements and compare different types of heat pump systems before making a decision.