Heat Pump Running Cost in the UK

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Heat Pump Running Cost in the UK
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Although electricity is more expensive than gas, heat pumps' average efficiency is as high as 300%, much higher than traditional gas boilers. But does this mean that the heat pump's running cost is significantly reduced? Many people want to figure this out before installing or replacing them.

In the UK, a heat pump's running cost is about £625 to £1,700 per year. Don't worry—in this blog, we will discuss not only the running cost but also the potential savings of heat pumps, influencing factors, cost-saving tips, and comparisons with other heating systems.

 

Key Takeaways:

  • In the UK, the average running cost of an air-source heat pump is between £855 and £1,700 per year, while the average running cost of a ground-source heat pump is between £625 and £1,200 per year.
  • In England, Scotland, and Wales, air-source heat pumps can help users save up to £1,200 per year, and ground-source heat pumps can help users save up to £2,000 per year.
  • The size of the house, its insulation, personal heating habits, the heat pump's energy efficiency, electricity prices, etc., will affect the heat pump's running cost.
  • Lowering the thermostat temperature, reducing hot water use, improving the house's insulation, and using solar energy can reduce the heat pump's running cost.
  • We highly recommend the Jackery Explorer 3000 v2 and the Explorer 2000 Plus as portable power supplies for powering a heat pump or more appliances. They offer higher capacity and portability.

 

Heat Pump Running Cost in the UK

Instead of gas, a heat pump consumes electricity and typically provides 3 to 4 times the heat. Like most home upgrades, a heat pump requires some upfront costs, and the initial installation can cost between £4,000 and £16,500, depending on the size and configuration of your home. For example, a typical 3-4 bedroom home will cost around £7,000 to £15,000, including installation. However, what people care about is the heat pump's running cost.

 

Average Heat Pump Running Costs in the UK

The average running cost of an air-source heat pump in the UK is between £855 and £1700 per year, equivalent to £72 to £142 per month. The average running cost of a ground-source heat pump is between £625 and £1200 per year, equivalent to £53 to £100 per month.

Size of Property

Yearly Energy Demand

Annual Running Costs

1 Bedroom

8,000 kWh

£830

2-3 Bedrooms

12,000 kWh

£1,150

4+ Bedrooms

17,000 kWh

£1,600

(Data Source: Greenmatch)

The data in this table are the average running costs of air-source heat pumps. Please note that these are only averages, and the operating costs of a heat pump depend on many factors.

Size of Property

Heat Pump Size

GSHP Annual Running Costs

1 Bedroom

7kW

£625

2-3 Bedrooms

11kW

£870

4+ Bedrooms

17kW

£1,200

(Data Source: Greenmatch)

The data in this table are average operating costs for geothermal heat pumps. These are only averages; heat pump operating costs depend on many factors.

 

How to Calculate Heat Pump Running Cost?

To calculate the heat pump's running cost, you need to know the property's heating demand, the current price of electricity in the UK, and the heat pump's coefficient of performance. However, these data can only help you estimate the price, and it isn't easy to calculate it accurately.

Step 1: Determine Annual Heat Demand (kWh/year)

Annual heat demand generally refers to how much heat your home needs in a year. If you previously used a gas boiler, looking at your gas bill is one of the most accurate ways to determine annual heat demand. Find the total gas consumption (kWh) for the past year and multiply this number by the efficiency of your old boiler. Old boilers are around 70%-85% efficient, and newer condensing boilers are around 85%-93%.

Example: Assuming your annual gas consumption (heating and hot water) is 12,000 kWh and your old boiler is 80% efficient, your annual heat demand is about 9,600 kWh (12,000 kWh * 80% = 9,600 kWh).

Step 2: Determine the Seasonal Effectiveness Ratio (SCOP) of Your Heat Pump

SCOP represents how many heat units a heat pump produces for every unit of electricity it consumes. Air-source heat pumps typically have an SCOP of 2.5 to 3.5, meaning that for every 1kW of electricity they consume, they produce 2.5 to 3.5kW of heat. If you don't know your heat pump's SCOP, ask your installer, who should provide an estimate based on your home and the equipment you choose.

Step 3: Determine the Electricity Rate (p/kWh)

The electricity rate is the price you pay for each kilowatt-hour of electricity your heat pump consumes and is one of the most significant variables affecting its operating costs. Find your recent electricity bill and the Unit Rate or p/kWh number. Be aware of whether you are on a flat rate or time-of-use rate.

Step 4: Calculate the Annual Running Cost of the Heat Pump

Once you have the property's heating demand, the current UK electricity cost, and the heat pump's coefficient of performance (COP), use this formula to estimate the heat pump's annual running cost.

Annual running cost (£) = (yearly heating demand (kWh) / heat pump seasonal efficiency ratio (SCOP)) × electricity price (£/kWh)

When calculating, please pay attention to unit conversions. For example, electricity prices are usually given as p/kWh, which needs to be converted to £/kWh when calculating costs.

Example: Assuming that an average household in northern England has an annual heating demand of approximately 9,600 kWh, a heat pump seasonal efficiency ratio (SCOP) of 3.0, and an electricity price of 25.73 pence per kWh (the energy price cap provided by Ofgem between July 1 and September 30, 2025), the annual running cost of the heat pump is approximately £823.36 ((9,600 kWh / 3.0) × £0.2573/kWh).

 

What Are the Factors that Affect the Cost of a Heat Pump Running?

Heat pump running costs vary due to differences in house size, insulation, personal heating habits, energy efficiency, electricity prices, etc. Below, we will explore the impact of these factors on heat pump running costs.

factors affect heat pump running cost

 

House Size

Larger houses require more heat coverage, which leads to longer heat pump running times, increased electricity consumption, and correspondingly higher running costs. For example, the heating demand of a small two-bedroom apartment is much lower than that of a four-bedroom detached house.

House Insulation

Sound insulation of walls, roofs, floors, etc., can significantly reduce the house's heat loss rate. If the heat is lost slowly, the heat pump does not need to be started frequently or run at high power for a long time to replenish heat. Houses with poor insulation usually require the heat pump to run at high load continuously to maintain the indoor temperature, resulting in increased energy consumption and costs. Well-insulated houses can save about 20% to 30% on heating costs.

Personal Heating Habits

Personal heating habits will directly affect the heat pump's operation mode. For example, setting the indoor temperature above 22°C for a long time will increase the heat pump's running time and energy consumption. Energy consumption typically increases by 5%- 10% for every 1°C increase in the room's set temperature. If the heat pump is also responsible for heating domestic water, frequent use of hot water for showering will also increase the heat pump's power consumption and operating costs.

Energy Efficiency of Heat Pumps

SCOP represents the number of units of heat energy the heat pump can produce for every unit of electricity consumed during the entire heating season. For example, a heat pump with an SCOP of 3 can produce 3 kWh of heat per kilowatt-hour of electricity consumed, while a heat pump with an SCOP of 2 can only produce 2 kWh of heat per kilowatt-hour of electricity. The latter requires more electricity to achieve the same heating capacity.

Electricity Prices

High electricity prices will directly increase the operating costs of heat pumps, especially during the peak winter electricity consumption period. In addition, if time-of-use electricity prices are used, the electricity prices during off-peak hours (3 to 5 in the morning) are much lower than those during peak hours (such as 4 to 6 in the afternoon).

 

How Much Money Can I Save by Using a Heat Pump?

Although heat pumps may be expensive, your initial investment will pay off over time. However, the potential annual savings from using a heat pump are not a fixed number; they depend on the size of the property, the household's electricity consumption, the current cost of the existing electric heater, and its age.

 

How Much Can an Air Source Heat Pump Save?

Air source heat pumps heat the air by efficiently converting heat energy, with an efficiency of 300%- 500%, which is more energy-efficient than traditional gas boilers. Air source heat pumps can help users save up to £1,200 per year in England, Scotland, and Wales. For example, if a household originally used an old (G-rated) gas boiler, switching to an air source heat pump can reduce the annual energy bill by about £260.

how much can air source heat pump save

(Data Source: Energysavingtrust)

The above data is based on fuel prices as of July 2025. The table shows how much users in England, Scotland, and Wales can save each year by replacing their original heating system with an air-source heat pump. It is for reference only.

 

How Much Can a Ground Source Heat Pump Save?

Geothermal heat pumps use underground constant-temperature energy for heating, with a higher and more stable energy efficiency ratio. They are also more energy-efficient than air-source heat pumps. In England, Scotland, and Wales, geothermal heat pumps can help users save up to £2,000 per year. For example, if a family originally used an old (G-rated) gas boiler, the annual energy bill can be reduced by about £490 after switching to a geothermal heat pump.

(Data Source: Energysavingtrust)

The above data is based on fuel prices as of July 2025. The table shows how much users in England, Scotland, and Wales can save each year by replacing their original heating system with a geothermal heat pump. It is for reference only.

 

What Are Some Tips for Reducing Heat Pump Running Costs?

Although the running cost of a heat pump is relatively low compared to traditional gas boilers, it is still a relatively large living expense for some families and individuals. Don't worry; if you want to reduce the running cost of a heat pump, you can follow the following practical tips.

how to reduce heat pump running cost

 

Tip 1: Lower the Thermostat Temperature

The heat pump is most efficient when maintaining a stable, mild temperature. A sharp increase in temperature will force the heat pump to work at a high load for a long time, reducing efficiency and increasing costs and setting the thermostat to a comfortable but not too high constant temperature, such as 18°C-20°C. You can lower it by 1-2°C when you go out or at night, but avoid turning off the heat pump completely.

Tip 2: Reduce Hot Water Use

If you use a heat pump to make hot water, you can reduce the use of hot water to reduce the heat pump's energy consumption and operating costs. Shortening shower time, installing water-saving showers, and washing clothes with cold water are all practical measures to reduce the frequent use of hot water.

Tip 3: Improve the Thermal Insulation Performance of the House

The house's thermal insulation affects the heat pump's energy consumption. The better the insulation of your home, the less heat you lose, the lower the target temperature your heat pump needs to reach, and the more efficient and energy-efficient it will be. Improve your home's insulation by upgrading door and window seals, adding insulation to exterior walls or roofs, and insulating curtains.

Tip 4: Maintain Your Heat Pump Regularly

Dirty filters, frosted evaporators, insufficient refrigerant, or mechanical problems can significantly reduce your heat pump's efficiency and increase operating costs. A well-maintained heat pump saves electricity and extends the unit's life by 5-10 years. Hiring a qualified MCS-certified professional to perform annual inspections and cleaning maintenance is best.

Tip 5: Switch to a Cheaper Electricity Supplier

Heat pumps do not use gas, but run entirely on electricity, so compare the prices of different electricity suppliers regularly. Use online price comparison tools such as Uswitch, MoneySuperMarket, and Compare the Market to find the most cost-effective electricity price. Some electricity suppliers even offer exclusive discounts for heat pump users.

Tip 6: Take Advantage of Off-Peak Electricity Prices

If you use time-of-use electricity prices, electricity is usually cheaper late at night and in the early morning. The heat pump can run low-cost tasks during these times, such as heating hot water or warming up a house. Alternatively, consider purchasing a battery or portable power station (Jackery Explorer 3000 v2 or 2000 Plus) to store electricity during low-price electricity periods and release it for use in the heat pump during peak hours.

jackery portable power station

 

Powering Your Heat Pump with Jackery

A Jackery power station can save money by allowing you to generate and store electricity when it's cheapest or free, and then use it to power your heat pump during more expensive times.

Besides, power cuts can occur in the UK due to winter storms or other infrastructure issues. A Jackery Portable Power Station, particularly a larger model, can be an emergency backup to keep essential appliances running. This is a primary use case, as a heat pump can be a critical appliance for heating a home during a power outage.

Unlike traditional gas generators, Jackery Portable Power Stations are battery-powered, making them silent and producing zero emissions. This means they can be safely used indoors, a significant advantage when the heat pump is inside the home or a garage.

Jackery Explorer 3000 v2

Choosing a Jackery Explorer 3000 v2 to power a heat pump in the UK can be a good option. Still, it's essential to understand the power station's capabilities and the heat pump's energy demands.

jackery explorer 3000 v2

 

High Power Output: The Jackery Explorer 3000 v2 offers a continuous output of 3600W and a surge output of 7200W. This significant amount of power can handle the initial startup surge and sustained running of many heat pumps. A typical domestic heat pump in the UK might have a power consumption of around 4.6 kW (4600W), but this can vary. You should always check the specific power requirements of your heat pump on its nameplate to ensure the Jackery can handle it.

Large Capacity: With a 3072Wh capacity, the Explorer 3000 v2 can store substantial energy. However, the runtime will depend entirely on the heat pump's consumption. For example, if a heat pump uses 200W on average, the Jackery could power it for over 15 hours. If a larger unit draws more power, the runtime will be shorter.

A typical UK home with a 5-6 kW heat pump might use 8-15 kWh daily, quickly depleting the Jackery's capacity. Therefore, it's best suited for a small heat pump or for short-term, emergency use rather than as a primary, long-term power source.

Home Backup and Emergency Use: This is one of the most compelling reasons for choosing this power station. In the event of a power cut, the Jackery Explorer 3000 v2 has an Uninterruptible Power Supply (UPS) function with a switch time of less than 20 milliseconds. This means it can seamlessly take over the power supply for critical appliances like a heat pump, preventing interruptions.

LiFePO4 Battery: The power station uses a LiFePO4 battery, which is known for its longevity and safety. It has a long cycle life of 4000 cycles to 70%+ capacity, meaning it's built to last for many years.


Jackery Explorer 2000 Plus

The Jackery Explorer 2000 Plus is a compelling choice for powering a heat pump in the UK, particularly for those looking to save on electricity bills or ensure energy security during a power outage. Its specifications and features are well-suited to the demands of a heat pump, which can be a significant power consumer.

jackery explorer 2000 plus

 

Time-of-Use (ToU) Tariffs: In the UK, many energy tariffs offer cheaper electricity during off-peak hours, typically overnight. You can charge the Jackery Explorer 2000 Plus using grid power during these low-cost periods.

With a large capacity of 2042.8Wh (and expandable up to 12kWh with additional battery packs), the power station can store a significant amount of this cheap energy. You can then use this stored energy to run your heat pump during the more expensive peak hours, effectively reducing your overall energy costs. This method decouples heat pump usage from the real-time, variable grid electricity price.

Solar Power Integration: The Explorer 2000 Plus is designed to be a "solar generator" and can be charged with Jackery SolarSaga 200W solar panels. Installing solar panels and storing the energy in a power station can generate free, clean electricity. A heat pump's electricity consumption can be substantial, and developing this power yourself directly offsets what you would otherwise buy from the grid. This can lead to significant long-term savings, especially with the high average electricity prices in the UK.

High Power Output: Heat pumps draw much power, especially when the compressor first starts up. The Explorer 2000 Plus provides a continuous power output of 3000W and a surge peak of 6000W. This is crucial for handling the inrush current of a heat pump's compressor, which can be much higher than its running wattage. This high output ensures the heat pump can start and run without tripping the power station's overload protection.

LiFePO4 Battery: The Explorer 2000 Plus uses a LiFePO4 (Lithium Iron Phosphate) battery. This technology is known for its durability, long lifespan (up to 4000 charge cycles before reaching 70% capacity), and enhanced safety compared to other lithium-ion chemistries. This makes it a reliable long-term investment for home backup.

 

Heat Pump Running Cost vs. Other Heating Systems

Whether installing or renewing a heating system, you must consider its upfront investment and ongoing running costs. Compared with other heating systems, heat pumps are not only more environmentally friendly, but also more cost-effective. The following will compare the running costs of heat pumps with oil boilers, LPG boilers, and gas boilers.

 

Heat Pump Running Costs vs. Gas Boiler Running Costs

Although the current price of natural gas is lower than that of LPG, it is subject to market supply and demand and import dependence, and there is a risk of price increases in the future. Gas prices are much lower than electricity, so gas boilers have lower running costs in the short term. However, heat pumps are more efficient, about three times that of natural gas boilers, so in the long run, their running costs may be lower than those of gas boilers.

heat pump vs gas boiler running costs

(Data Source: Goodenergy)

The above data is based on a heat demand of 11,500 kWh, an electricity price of £0.274/kWh (energy price cap in the second quarter of 2025), and a gas price of £0.069/kWh (as of April 2025). The data in brackets after the old gas boiler, modern gas boiler and air source heat pump are their efficiencies. The figure also reflects that switching from a gas boiler to an air source heat pump can save £119 in gas fixed costs per year, so it looks like the heat pump running costs are lower than the gas boiler running costs.

 

Heat Pump Running Costs vs. LPG Boiler Running Costs

LPG prices are more volatile than natural gas, so running costs are higher. For example, LPG prices peaked at nearly 90 pence per litre in 2022. Modern condensing boilers are about 85%-90% efficient, but older LPG boilers are about 70% efficient. The efficiency of a liquefied petroleum gas (LPG) boiler is similar to that of an oil boiler, but relatively low compared to an air source heat pump, so running costs are higher. However, it burns cleaner and is suitable for remote areas without access to natural gas.

heat pump vs lpg boiler running costs

(Data Source: Goodenergy)

The above data is based on a heat demand of 11,500 kWh, an electricity price of £0.274/kWh (energy price cap in Q2 2025), and an LPG price of £0.077/kWh (as of April 2025). The data in brackets after the old LPG boiler, modern LPG boiler and air source heat pump are their efficiencies.

In general, gas boilers have the lowest operating costs for users who can use natural gas, and the price of natural gas is stable. Heat pumps are usually the lowest operating cost option for remote areas without access to natural gas.

 

FAQs

The following are frequently asked questions about the heat pump running cost in the UK:

1. What is the running cost of a heat pump in the UK?

Heat pumps are usually divided into air-source heat pumps and ground-source heat pumps. Not only do they work differently, but their running costs also vary. According to Greenmatch, in the UK, the average running cost of an air-source heat pump is usually between £855 and £1,700 per year, while the average running cost of a ground-source heat pump is between £625 and £1,200 per year.

2. How much does it cost to run a heat pump per hour?

Calculate the amount of electricity the heat pump consumes per hour and multiply it by the electricity price to calculate its hourly running cost. For example, a 2kW air source heat pump costs about 51.46p to run for one hour. This is based on 25.73p per kWh (based on the average price of the energy price cap from July to September 2025). However, please note that this is only an estimate.

3. Which is more efficient, a heat pump or a gas boiler?

Heat pumps operate significantly more efficiently than gas boilers, providing more energy or heat for each unit of fuel consumed. Heat pumps can be up to 300% efficient, while gas boilers typically have a maximum efficiency of around 92%.

4. How much can an air source heat pump save you?

Air-source heat pumps can save users £65-1200 annually in England, Scotland, and Wales. In Northern Ireland, they can save users £30-1300 per year.

How much an air source heat pump can save you depends on the type of heating system you are comparing. For example, replacing an old (G-rated) LPG boiler with a standard air source heat pump could save around £700.

 

Final Thoughts

In conclusion, a heat pump is wise for most people who want to reduce heating costs and rely on gas. For example, for users in England, Scotland, and Wales, replacing an old (G-rated) gas boiler with an air-source heat pump can reduce annual energy bills by about £260. In addition, lowering the thermostat temperature, reducing hot water use, improving the insulation performance of the house, and using solar power can effectively reduce heat pump running costs.

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