Heat Pump Running Costs UK 2026: Real Numbers, Not Guesswork
A heat pump in a well-insulated UK home costs £700 to £1,200 per year to run at current electricity prices. That's comparable to a gas boiler in many cases, and cheaper if your home is well insulated and you use a smart tariff. Here's the full breakdown.
Get your personalised estimate
The figures in this guide are national averages. Your actual costs depend on your property type, insulation, and tariff. Use our free heat pump calculator to get a personalised estimate in 30 seconds.
In this guide
Annual running costs by property type How much does a heat pump cost per hour? Heat pump vs gas boiler: cost comparison Why is my electric bill so high with a heat pump? How to reduce heat pump running costs Smart tariffs that cut costs Why insulation is the biggest factor Combining solar panels with a heat pump Frequently asked questionsAnnual running costs by property type
Heat pump running costs depend on three things: how much heat your home needs (determined by size and insulation), how efficiently your heat pump converts electricity into heat (its COP), and how much you pay for electricity. Using Ofgem Q1 2026 rates and Energy Saving Trust heat demand data, here are realistic annual costs.
| Property type | Insulation level | Heat demand (kWh/yr) | Heat pump cost/yr | Gas boiler cost/yr |
|---|---|---|---|---|
| 2-bed mid-terrace | Good | 5,500 | £421 | £404 |
| 3-bed semi-detached | Good | 8,500 | £651 | £625 |
| 3-bed semi-detached | Average | 11,000 | £963 | £808 |
| 4-bed detached | Good | 12,000 | £919 | £882 |
| 4-bed detached | Average | 16,000 | £1,400 | £1,176 |
| 5-bed detached | Good | 15,000 | £1,148 | £1,103 |
Assumptions: electricity at 24.5p/kWh, gas at 6.76p/kWh (Ofgem Q1 2026). Heat pump COP of 3.2 for "good" insulation, 2.8 for "average". Gas boiler at 92% efficiency. Heat demand figures from Energy Saving Trust. Calculate your specific costs.
The pattern is clear. In well-insulated homes, heat pumps and gas boilers cost roughly the same to run. In poorly insulated homes, the gas boiler is cheaper because the heat pump's efficiency drops. This is why we always recommend checking your insulation before committing to a heat pump.
These numbers change with your tariff
The table above uses standard Ofgem rates. If you switch to a heat pump tariff like Octopus Cosy, your effective electricity rate drops significantly for heating hours, making the heat pump 20% to 30% cheaper to run. See the smart tariffs section below.
How much does a heat pump cost to run per hour?
This is one of the most searched questions about heat pumps, and the answer depends on what your heat pump is doing at any given moment.
A typical 8 kW air source heat pump running at full output consumes around 2.5 kW of electricity (at a COP of 3.2). At the Ofgem rate of 24.5p per kWh, that's 61p per hour at full output. A larger 12 kW system at full output costs around 92p per hour.
But heat pumps rarely run at full output. Modern inverter-driven heat pumps modulate their output to match demand. On a mild autumn day, your 8 kW heat pump might run at 3 kW, consuming less than 1 kW of electricity and costing just 24p per hour. On the coldest winter days, it ramps up to full capacity.
| System size | Full output cost/hr | Typical winter cost/hr | Typical mild day cost/hr |
|---|---|---|---|
| 6 kW (small home) | 46p | 35p | 15p |
| 8 kW (average home) | 61p | 46p | 20p |
| 10 kW (larger home) | 77p | 58p | 25p |
| 12 kW (large detached) | 92p | 69p | 30p |
Based on COP of 3.2 at 24.5p/kWh. "Typical winter" assumes 75% output. "Typical mild day" assumes 30% output. Get your personalised estimate.
A more useful way to think about it is daily cost. During the coldest months (December to February), expect to spend £4 to £10 per day on heating depending on your home. During milder months, this drops to £1 to £3. Over the full year, including summer when the heat pump provides only hot water, the annual cost averages out to the figures in the table above.
Heat pump vs gas boiler: the real cost comparison
The reason heat pump running costs are competitive despite electricity costing 3.6 times more than gas per unit comes down to efficiency. A gas boiler converts roughly 92% of the gas it burns into heat. A heat pump delivers 2.5 to 3.5 units of heat for every unit of electricity it uses. This multiplier effect closes the price gap.
Here's the maths. At Ofgem Q1 2026 rates:
Gas boiler effective heating cost: 6.76p per kWh of gas, divided by 0.92 efficiency = 7.35p per kWh of heat.
Heat pump effective heating cost at COP 2.8: 24.5p per kWh of electricity, divided by 2.8 = 8.75p per kWh of heat.
Heat pump effective heating cost at COP 3.2: 24.5p per kWh, divided by 3.2 = 7.66p per kWh of heat.
Heat pump effective heating cost at COP 3.5: 24.5p per kWh, divided by 3.5 = 7.00p per kWh of heat.
The breakeven point is a COP of around 3.3. Above that, the heat pump is cheaper to run than a gas boiler. Below that, gas is cheaper per unit of heat. Your COP depends almost entirely on how well insulated your home is and whether your heat pump is correctly sized and installed.
Our boiler vs heat pump comparison tool calculates the full 15-year cost of ownership including installation, maintenance, and the £7,500 BUS grant. Even when running costs are slightly higher, the grant can make a heat pump the cheaper option overall.
Don't forget the gas standing charge
If you switch fully to a heat pump and remove your gas supply, you save the gas standing charge of around £128 per year. This effectively reduces your heat pump running costs by that amount. Some suppliers will remove your gas meter for free.
Why is my electric bill so high with a heat pump?
If your heat pump bills seem higher than expected, the cause is almost always one of these issues.
Poor insulation. This is the number one reason. A heat pump in a poorly insulated home has to work much harder and its COP drops from 3.2 or above to 2.5 or even lower. Check your potential insulation savings — loft and cavity wall insulation can transform your heat pump's performance.
Flow temperature set too high. Heat pumps work best at low flow temperatures (35 to 45 degrees Celsius). If your installer left the flow temperature at 55 degrees or higher (common when retrofitting into a home with old radiators), efficiency drops significantly. Ask your installer to review and reduce your flow temperature. You may need larger radiators to compensate.
Wrong size system. An oversized heat pump cycles on and off frequently, wasting electricity. An undersized one runs flat out constantly. Both scenarios hurt efficiency. A proper heat loss calculation before installation is essential.
Standard electricity tariff. If you're still on a standard variable tariff, you're paying peak rates for all your heating. Switching to a heat pump-specific tariff can cut costs by 20% to 30%. See the smart tariffs section.
Using the immersion heater for hot water. Some installations default to using a backup immersion heater for hot water, which is extremely expensive. Check that your heat pump is providing your hot water, not the immersion.
How to reduce heat pump running costs
The most impactful changes you can make, ranked by potential savings:
1. Insulate your home. This is the single biggest factor. Going from "average" to "good" insulation can reduce your heat demand by 25% to 35% and improve your COP by 0.3 to 0.5 points. That's a double saving — less heat needed, delivered more efficiently. Calculate your insulation savings. Many households qualify for free insulation through ECO4 or the GB Energy Scheme.
2. Switch to a smart tariff. Heat pump tariffs like Octopus Cosy offer significantly cheaper rates during heating hours. The savings can be 20% to 30% compared to standard rates. See details below.
3. Reduce your flow temperature. Every degree you lower the flow temperature improves efficiency. Aim for 35 to 40 degrees if your radiators can cope. Weather compensation, which automatically adjusts the flow temperature based on outdoor conditions, is the ideal setup.
4. Add solar panels. A 4 kW solar panel system can offset 30% to 50% of your heat pump's electricity consumption, especially during spring and autumn when heating demand and solar generation overlap. With a battery, you can store solar electricity to power the heat pump in the evening.
5. Use weather compensation. This setting, available on most modern heat pumps, automatically adjusts the flow temperature based on the outdoor temperature. It prevents the system from overheating your home on mild days, saving significant electricity over the year.
6. Schedule heating intelligently. Because heat pumps work best when running steadily at low output rather than blasting on and off, avoid large temperature setbacks. Dropping your thermostat by 1 to 2 degrees at night is fine, but don't turn the heating off completely and then ask the heat pump to reheat the house from cold — that's inefficient.
Smart tariffs that cut heat pump costs
Standard electricity tariffs charge the same rate all day. Smart tariffs vary the price based on time, and since heat pumps can pre-heat your home during cheap periods, the savings are substantial.
Octopus Cosy is currently the most popular heat pump tariff. It offers cheaper rates during three heating windows per day (typically early morning, midday, and evening), with standard rates at other times. Octopus reports that Cosy customers with heat pumps pay a weighted average of around 21p per kWh, compared to the Ofgem cap of 24.5p. That's a 14% reduction before you even change anything about your home.
Octopus Agile goes further for those willing to be flexible. Rates vary every 30 minutes based on wholesale prices. Off-peak electricity can drop to 5 to 10p per kWh, and occasionally goes negative (you're paid to use electricity). Running your heat pump during these cheap periods with a battery to bridge the gaps can reduce heating costs dramatically.
Economy 7 and Economy 10 tariffs offer cheaper overnight rates but higher daytime rates. These can work if your home has good thermal mass (retains heat well) and you can pre-heat overnight, but they're less flexible than newer smart tariffs.
Why insulation is the biggest factor in running costs
We keep coming back to insulation because it affects heat pump running costs in two compounding ways.
First, better insulation means your home needs less heat. A well-insulated 3-bed semi might need 8,500 kWh per year, while a poorly insulated one needs 15,000 kWh. That alone nearly doubles your bills.
Second, better insulation means your heat pump can run at a lower flow temperature, which increases its COP. At a flow temperature of 35 degrees (possible with good insulation and adequately sized radiators), a typical heat pump achieves a COP of 3.5. At 55 degrees (needed in poorly insulated homes), COP drops to 2.5.
Combined, these effects mean the same heat pump can cost £650 per year in one home and £1,500 in another, purely based on insulation quality. Use our insulation calculator to see the costs and savings for your specific property, and check if you qualify for free insulation through government grants.
The recommended upgrade order
1. Insulate your home (loft first, then walls). 2. Install a heat pump (sized for the insulated home). 3. Add solar panels to reduce electricity costs further. Doing it in this order means you need a smaller, cheaper heat pump that runs more efficiently.
Combining solar panels with a heat pump
Solar panels and heat pumps are natural partners. During spring and autumn, when you still need some heating but the days are getting longer, solar panels can provide a significant proportion of the electricity your heat pump needs.
A typical 4 kW solar system generates around 3,500 kWh per year. Without a battery, roughly 45% of that is used directly in the home. With a battery, self-use rises to around 80%. If your heat pump uses 3,000 kWh of electricity per year, solar can realistically offset 1,000 to 2,000 kWh of that, saving £245 to £490 per year on top of the other savings solar provides.
The financial case becomes particularly strong when you consider that solar panels also improve your EPC rating by 5 to 10 points and benefit from 0% VAT until March 2027. Use our solar panel calculator to see the full ROI for your property.
Frequently asked questions
How much does a heat pump cost to run per hour?
An air source heat pump running at full output costs roughly 61p to £1.05 per hour at current electricity rates (24.5p/kWh, Ofgem Q1 2026), depending on the system size. However, heat pumps rarely run at full output. During mild weather, they modulate down significantly. A typical home spends £3 to £8 per day on heating during winter. Calculate your specific costs.
Why is my electric bill so high with an air source heat pump?
The most common causes are poor insulation (forcing the heat pump to work harder), the flow temperature set too high (reducing efficiency), the heat pump being incorrectly sized for the property, or running on the standard electricity tariff instead of a heat pump-specific tariff. A well-installed heat pump in a well-insulated home should cost £700 to £1,200 per year to run.
Are heat pumps cheaper to run than gas boilers in 2026?
In a well-insulated home, running costs are comparable or slightly cheaper. The breakeven COP is around 3.3 at current energy prices. Homes with good insulation typically achieve a COP of 3.2 to 3.5, putting them right at or below the cost of gas. Adding a smart tariff or solar panels tips the balance firmly in the heat pump's favour. See our full boiler vs heat pump comparison.
What does Martin Lewis say about heat pumps?
MoneySavingExpert recommends looking at the full picture: upfront cost minus the £7,500 BUS grant, running costs compared to your current system, and long-term savings as gas prices are expected to rise. They advise insulating your home first and getting multiple quotes from MCS-certified installers.
How much does a heat pump cost to run per year UK?
Annual running costs range from £500 to £1,400 depending on property size, insulation, and tariff. A typical well-insulated 3-bedroom semi costs around £700 to £900 per year. A larger poorly insulated detached house can cost £1,200 to £1,400. Use our calculator for a personalised figure.
What is the downside to a heat pump in the UK?
The main downsides are the higher upfront cost (£7,000 to £13,000 before the £7,500 grant), the need for good insulation to achieve the best efficiency, some outdoor noise from the unit (typically 40 to 50 dB, similar to a fridge), and the fact that electricity currently costs more per unit than gas, meaning savings depend on achieving a good COP. Our comparison tool can help you weigh these factors for your specific situation.
Data sources and methodology
All figures in this guide are calculated using published, verifiable data. Electricity and gas prices come from the Ofgem Q1 2026 price cap. Heat demand by property type comes from the Energy Saving Trust and BEIS National Energy Efficiency Data-Framework. COP values are based on field data from the Electrification of Heat Demonstration Project. For full details, see our methodology page.