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Are Heat Pumps Expensive to Run in the UK? Cost Guide 2025

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Modern UK home with heat pump system and running cost comparison

Table of Contents

When the UK moves towards energy, many houses think about switching to heat pumps. But a common question is whether heat pumps are expensive to drive in the UK? 

This blog will detect the moving costs of heat pumps, compare them with traditional gas boilers, explain the use of electricity and provide simple suggestions to reduce monthly bills. If you are considering a heat pump for your home, this guide will help you make a smart decision.

What Is a Heat Pump?

A heat pump is a unit that warms your house by transferring heat from air, paint or water to your home. It acts as a refrigerator in reverse. There are two common types in the UK:

Air Source Heat Pumps vs Ground Source Heat Pumps – ASHPs pull heat from the outside air, while GSHPs extract heat from the ground.

The main benefit? Heat pumps are more energy-efficient than gas boilers. But are they cheaper to run?

Air Source Heat Pump Grants

Heat Pump vs Gas Boiler Running Cost

Initial Comparison

  • Gas boilers are cheaper to install but use fossil fuels.
  • Heat pumps are more expensive upfront but are more efficient heat pump long-term.

Running Costs Overview

Here’s a rough breakdown of typical annual running costs in the UK:

SystemAverage Annual Cost (UK Home)
Gas Boiler£800 – £1,200
Air Source Heat Pump£900 – £1,300
Ground Source Heat Pump£700 – £1,100

The difference between a heat pump and gas boiler stops, especially with rising gas prices and state incentives. While the gas is currently cheaper per kw, 3-4 kWh of heat can be used for every 1 kWh effect used in heat pumps, thanks to their high efficiency (known as performance or COP coefficient).

How Much Does It Cost to Run a Heat Pump Per Month?

Monthly heat pump costs vary depending on:

  • Home size and insulation
  • Type of heat pump (air or ground source), including the size of heat pumps for home
  • Electricity tariffs
  • Weather and outside temperatures

Average Monthly Costs (UK)

  • Small Flat (1-bed): £40 – £60 per month
  • Medium House (3-bed): £70 – £100 per month
  • Large House (4+ beds): £100 – £140 per month
 

Compare that to gas:

  • Medium House (3-bed) gas heating: £60 – £90 per month
 

Therefore, while the cost of heat pumps can be slightly higher, they become cheaper over time, especially with appropriate layouts and insulation.

How Much Electricity Does a Heat Pump Use Per Month in the UK?

Air Source Heat Pumps (ASHP)

  • Use around 3,000–4,500 kWh/year
  • Monthly usage: 250–375 kWh

Ground Source Heat Pumps (GSHP)

  • Use around 2,500–4,000 kWh/year
  • Monthly usage: 210–330 kWh
 

Current electricity rate in the UK (June 2025): ~28p per kWh (variable)

  • Monthly cost (average ASHP): 250 kWh × £0.28 = £70/month
  • Monthly cost (average GSHP): 220 kWh × £0.28 = £61.60/month
 

Again, real-world costs depend on how well your system and home are optimized.

Why Is My Air Source Heat Pump Expensive to Run?

Some users find their air source heat pumps expensive to run. Here’s why:

1. Poor Insulation

If your house loses heat quickly, the heat pump works hard and long. This increases the use of electricity.

2. Wrong System Size

If the system is too small, it can run non-stop to meet demand. If it is very large, it cycles a bike many times and wastes energy.

3. High Electricity Rates

Electricity is more expensive than gas in the UK. While heat pumps are effective, high tariff rates can push bills.

4. Old Radiators or Pipes

Heat pumps work best with underfloor heating or large radiators. A small radiator runs the heat pump at high temperatures, cutting into efficiency.

5. Bad Controls or Settings

Incorrect settings (like constantly heating hot water) can drive up consumption. Smart thermostats and timers help fix this.

Factors Affecting Heat Pump Efficiency in the UK

1. Home Insulation

Good insulation is important. Scaffolding, cavity walls and double windows help in the summer.

2. External Temperatures

Heat pumps work well even in cold weather, but the performance decreases slightly when the temperature falls under the cold.

3. System Design

 A well-planned system will perform better to fit your home. Avoid “One-Size-Fit-All” installations.

4. Usage Habits

Long heating hours or high indoor temperature increase the use of energy. To put the lower temples (about 18–20 ° C) saves money.

Tips to Reduce Heat Pump Running Costs

1. Improve Home Insulation

Add harness draft, insulation insulation of scaffolding, and consider triple window. Every little improvement is connected.

2. Use Smart Controls

Smart thermostats and weather compensation controls help heat the home only when needed.

3. Lower Flow Temperatures

Set your heat pump to run at 35-45 ° C instead of 55-60 ° C. Instead of 55-60 ° C. It uses low electricity.

4. Schedule Heating

Avoid 24/7 heating. When you are gone, set a comfortable schedule and low temperature.

5. Use Off-Peak Tariffs

Sign up for tariff rates with low prices at night or picking hours.

6. Regular Maintenance

Serve your heat pump once a year to run it effectively.

Heat Pumps vs Gas Boilers: Long-Term Outlook

FeatureGas BoilerHeat Pump
Fuel Cost per kWh~8p~28p
Efficiency85–90%300–400%
Carbon EmissionsHigh (fossil)Low (electric-based)
Future LegislationPhased outGovernment-backed
Installation Cost£2,000–£3,000£7,000–£14,000
Lifespan10–15 years15–20 years

Despite high advances and slightly higher operating costs for some homes, heat pumps are more evidence in the future

The British government has planned to phase the gas boilers in new homes by 2035. Heat pumps are also eligible for financial assistance as a boiler upgrade scheme, offering up to 7,500.

Real-World Example: Medium 3-Bed House

Let’s take an average UK home:

  • Gas boiler (efficiency 90%) using 15,000 kWh/year gas:
 

Gas price at 8p/kWh = £1,200/year

  • Air source heat pump (COP 3.2):
 

Needed electricity = 15,000 ÷ 3.2 = 4,687 kWh

Electricity price at 28p/kWh = £1,312/year

The difference? Just £112/year more to run the heat pump. And with smart habits and lower electricity rates, the heat pump can even come out cheaper.

Are Heat Pumps Worth It?

Yes, if your house is well insulated and you use the system properly, heat pumps can be cost-effective to drive in the UK. 

While the cost of electricity is higher than gas, heat pumps are four times more efficient, making them a large long -term investment. Add state incentives, rising gas prices and green dimensions, and heat pumps become even more attractive.

Final Thoughts

Heat pumps are not very expensive to run in the UK – until your house is ready. With energy -threatened activities, low emissions and increasing support from the British government, they are a smart alternative for the future. 

Although the monthly cost for some homes may be slightly higher, long -term savings and stability benefits make it worth switching. Plan your system carefully, improve your home insulation and you will see the price.

If you are ready to cut the carbon footprint and detect renewable heat, a heat pump can be the right step for your home.

Frequently Asked Questions

How much does it cost to run a heat pump per month?

For a medium size in the UK the monthly costs from £ 70 to £ 100, based on insulation, use and power tariffs.

How much electricity does a heat pump use per month in the UK?

An air source heat pump uses around 250–375 kWh/month. A ground source heat pump uses a little less.

Why is my air source heat pump expensive to run?

This may be due to poor insulation, incorrect system size, high flow temperature or expensive power prices. Smart settings and proper design help reduce costs.

Is a heat pump cheaper to run than a gas boiler?

Not always. The gas is still cheap per unit, but the heat pumps are more efficient. Over time, a heat pump can match or hit the cost of running a gas boiler, especially with good insulation and smart control.

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