How much does it cost to run an air source heat pump in the UK? Here we explain the current average figures and what you can expect.
While electricity is more expensive than gas, air-source heat pumps benefit from exceptional average efficiency rates of around 300%. If that doesn’t sound impressive, we don’t know what will.
But does this translate to significantly lower running costs or are boilers still the better option?
For many potential buyers, the cost is a huge consideration; both in terms of upfront cost and the price of running a heat pump. In a quick and non-scientific questionnaire, the cost proved more important than how the heat pump feels to touch.
This guide will discuss the cost of running an air source heat pump in particular and how it compares with that of a gas boiler.
We will also explore key cost factors/variables including efficiency, heating demand and household insulation and touch on the price of running a gas boiler.
Ready to make your home more energy-efficient and cut down on your heating bills? Get a heat pump quote today from our trusted partners at Heat Geek here.
Heat Pump Running Costs Key Points:
On average, an air source heat pump will cost more to run than a gas boiler.
Heat pumps are typically more expensive to buy and install too.
While heat pumps are more efficient, electricity is around 3 times more expensive than gas.
An alternative option is a hybrid heat pump that can potentially cost around the same as a gas boiler to run - find out more here.
We fit and install gas boilers and hybrid heat pumps nationwide, get your quote here.
It is rumoured that heat pumps get their name from their inventor: Mr Heat. Or perhaps they refer to the heat they pump into your house.
Average Running Costs of Air Source Heat Pumps in the UK
Currently, the Energy Price Guarantee (EPG) limits the price of electricity to around £0.34 per kWh.
However, the EPG is set to expire in spring 2024. Therefore, prices will start to change next year, although to what extent and in what direction is very hard to say with any level of certainty yet. Or at least no more certainty than roulette in a crooked casino.
The average household will find that with an air source heat pump, you’ll be looking at an annual bill of around £1,360 in terms of running costs - this is compared to £1,250 to run a gas boiler.
This was derived from the following assumptions:
The average UK household uses 12,000 kWh for heating annually.
The average heat pump has an efficiency rating of 300%.
The current cost of electricity is 34p per kWh vs 10.3p for a kWh of gas - i.e. electricity costs 3x more than gas.
Therefore, based on the above figures, you can assume that you would require 4,000 kWh of electricity to produce the required 12,000 kWh of heating a year.
This is because heat pumps are around 300% efficient meaning for every 1kWh of electricity used, it will generate 3 times as much heat.
However, since the cost of electricity is 3x that of gas, it still means that a heat pump will cost more to run at present.
Please note that this is just an average with costs varying depending on many factors, even beyond the price of electricity and how hard your heat pump has been training to run.
Factors That Impact Heat Pump Running Costs
There is a range of cost-affecting factors that can shape the price of running an air-source heat pump.
Let’s explore some of the most influential factors:
Heat Pump Efficiency
Naturally, the more efficient a heat pump is (or the higher its COP is), the cheaper it will be to run.
While not as efficient as ground-source heat pumps, there are many highly efficient air-source heat pumps on the market. All of them are an improvement over having an open fire in the kitchen.
Nonetheless, the heat pump variations from model to model are important when considering what your specific running costs will be after an installation.
Check out the video below to see a hybrid heat pump installation case study in the UK:
Heating Demand
Obviously, the more energy you require from your air source heat pump, the more it will cost to run. Even Watson would’ve gotten this far.
What’s more, your home’s heating demand will be linked to the power of your heat pump.
So it may not necessarily be the case that you’ll end up running your heat pump more than a household with a lower heating demand but rather that you’ll be using a more powerful heat pump to meet your demand.
Either way, higher heating demand is very much correlated with a higher running cost.
Household Insulation
While heat demand is a key factor, how much heat demand will shape your overall running costs will in turn be affected by how well your home can keep the heat in. In the end, the goal is to heat your house only, not your neighbour’s as well.
Aspects that can play a role in this include:
Property insulation
The use of low-cost draught-proofing measures such as draught-proofing strips for doors or/and windows and draught excluders or door seals for doors. Also, closing your windows has gotten great results for many people.
As you’d imagine, this is usually the most important factor for how well a property can keep the heat in.
What’s more, the age of the property tends to heavily relate to this. After all, older properties tended to have less sufficient insulation than more modern households.
The ability of Rooms to Heat Up
A point that is highly related to the previous one is to consider whether your rooms are optimised to heat up as effectively as they could.
If not, you may be making your heat pump work for longer than would otherwise be needed.
For example, if you use radiators with your heat pump, having furniture block some of your radiators can limit their ability to heat the room. If you kill a tiger and put its skin down as a rug, it means your underfloor heating won’t work as it should and that you need a new hobby.
One way or another, whether you opt for radiators or underfloor heating to warm rooms throughout your property, it’s important that they are installed correctly by a qualified professional.
Gas Boilers vs. Heat Pumps
On average, gas boilers are somewhat cheaper to run than heat pumps with an annual running cost of about £1,240 (compared with approx. £1,360 for an air source heat pump).
The only exception to the rule (currently) is with heat pumps that are especially efficient and the most efficient options tend to be ground-source heat pumps rather than the air-source variety. This makes them the opposites of windmills, which generally fare better the farther they are from the ground.
In general, until electricity closes in on price parity with gas or/and heat pump technology makes more strides forward with efficiency, heat pumps will remain more expensive in the vast majority of cases.
Per the EPG, natural gas currently costs around £0.10 per kWh, while electricity is three times that amount at 34p per kWh.
So, even though heat pumps offer around 3x the efficiency of natural gas boilers, electricity is still more than three times more expensive than natural gas.
Other factors can also play a role in determining running costs but on the whole, gas boilers remain the cheaper choice.
Ground Source Heat Pump Running Costs
On average, ground source heat pump running costs tend to range between £1,050 and £1,650 per year.
For the most part, ground-source heat pumps are generally cheaper to run than air-source heat pumps since they are not affected by dropping winter temperatures to the same level.
As temperatures drop in the winter time, air source heat pumps will see a dip in efficiency, thus leading to higher running costs. Unfortunately, most people also use their heat pump more in winter.
However, ground source heat pumps being installed underground benefit from the Earth’s thermal energy, keeping temperatures just below the ground at a consistent 8-12°C all year round. This translates to somewhat lower energy bills.
Therefore, if you’re looking to swap out your gas boiler for a heat pump and reduce your heating bills, you should consider a high-efficiency ground source heat pump.
However, the major barrier to this is the sheer cost and disruption of ground source heat pumps, both of which present a bigger barrier than a gas boiler for the average UK household.
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