How much does a heat pump cost to run?
There are two costs to consider when updating your heating: the upfront investment and the ongoing running costs. Here, we compare air source heat pump running costs with gas, oil and LPG boilers. And the short answer is, as well as being greener, a heat pump is more cost effective, too.
How do heat pump running costs compare with other heating systems?
Heat pump running costs vs oil boiler
Air source heat pumps are more cost-effective than oil boilers since the Iran US war began.
Electricity prices tend to change much less frequently than heating oil, which can spike and drop on a daily basis. Over the past year, for example, heating oil has seen highs of 105p per litre and lows of 50p per litre – which makes a substantial difference to costs over the course of a year.
Heat pumps also avoid the need for planning and scheduling deliveries. It’s advisable to wait until your tank is a quarter full or less before getting an oil delivery – which may not coincide with the best price.
Estimated annual heating costs of air source heat pumps and oil boilers for a medium-usage household with a heat demand of 11,500kWh. Running costs based on the following kWh prices (April 2026 price cap): £0.247 for electricity;average oil price in Spring 2026 of £0.097/kWh; heating efficiency of 70% for old oil boilers, 90% for modern oil boilers and 350% for air source heat pumps.
Heat pump running costs may be further reduced by joining Good Energy’s heat pump tariff.
Heat pump running costs vs LPG boiler
The relatively low efficiency of LPG boilers compared to air source heat pumps makes them more expensive to run. This is especially true if you have an older LPG boiler running at about 70% efficiency.
What’s more, LPG boilers are more exposed to frequent price chances due to volatility in the gas market, with LPG prices reaching peaks of nearly 90p per litre in 2022. At the moment, LPG prices are around 70p / litre.
Estimated annual heating costs of air source heat pumps and oil boilers for a medium-usage household with a heat demand of 11,500kWh. Running costs based on the following kWh prices (April 2026 price cap): £0.247 for electricity; average LPG price as of April 2026 £1.46/kWh; heating efficiency of 70% for old LPG boilers, 90% for modern LPG boilers and 350% for air source heat pumps.
Heat pump running costs may be further reduced by joining Good Energy’s heat pump tariff.
Heat pump running costs vs gas boiler
An air source heat pump is likely to be cheaper to run than a gas boiler because of the greater efficiency, even though gas rates are lower than electricity rates. Moving from a gas boiler to an air source heat pump could also save you £124 a year in gas standing charges, as you wouldn’t need a gas connection anymore. We have reflected this saving in our graphs.
The potential savings may even grow in the future. This is because the government is indicating that levies currently raised on electricity (around 25% of its price) may be partly raised on gas instead or shifted into general taxation.
Estimated annual heating costs of air source heat pumps and oil boilers for a medium-usage household with a heat demand of 11,500kWh. Running costs based on the following kWh prices (April 2026 price cap): £0.247 for electricity; £0.057 for gas with a 29p daily standing charge; heating efficiency of 70% for old gas boilers, 90% for modern gas boilers and 350% for heat pumps.
Heat pump running costs may be further reduced by joining Good Energy’s heat pump tariff.
What impacts heat pump running costs, and how have we calculated ours?
Heat pump running costs and savings compared with other heating systems vary from property to property, based on the following factors:
- the price of your current heating fuel
- how efficient your old heating system is
- the heat loss at your property
- how much hot water you use
- the temperature you’d like your heating to be.
- Whether you’re on a tariff that’s designed for heat pump users.
For the examples above, we use an average annual heat demand of 11,500 kWh, which is based on Ofgem’s typical domestic consumption values for a medium-sized household. Please note, these graphs below compare the potential costs for heating your home, and do not include your other electricity uses.
Our calculations assume that your air source heat pump will meet a Seasonal Coefficient of Performance (SCOP) of 3.5: the efficiency our installation partners, Installio, design to.
Get your personalised heat pump running cost estimate
If you know your annual space heating demand (your EPC should detail this information), the efficiency of your heating source and the price for your current heating fuel, you can calculate the running costs for your own property to get an initial idea before starting a heat pump quote.
It won’t replace the insights gained from a properly conducted heat loss survey, which is included as part of a heat pump design consultation, but it’s a good place to begin.
