Is It Expensive to Run a Heat Pump?

Heat Pump Running Costs Explained

No — heat pumps are not expensive to run. Despite electricity costing more per unit than gas (approximately 24p/kWh vs 7p/kWh), a heat pump's exceptional efficiency means it uses far less energy. For every 1 kW of electricity, a heat pump produces 3-4 kW of heat. This effectively reduces the cost per kW of heating to just 6-8p.

For a typical UK 3-bedroom home, annual heating costs with a heat pump are £500-£800, compared to £800-£1,200 for gas, £1,200-£1,800 for oil, and £1,500-£2,500 for electric heating. Heat pumps are consistently one of the cheapest heating options available.

Factors That Affect Running Costs

Several factors influence your heat pump's running costs: insulation quality, system sizing, flow temperature settings, and your electricity tariff. Well-insulated homes allow the heat pump to operate at lower temperatures, where it's most efficient.

Using a time-of-use electricity tariff (like Octopus Go or Economy 7) can further reduce costs by allowing you to run the heat pump during cheaper off-peak hours. Some homeowners with solar panels effectively heat their homes for free during sunny periods.

How to Minimise Running Costs

Optimise your system by keeping the flow temperature as low as comfortable (ideally 35-45°C), using weather compensation controls, and ensuring your home is well insulated. These measures can reduce running costs by 20-40%.

Pairing your heat pump with solar panels is one of the most effective ways to slash running costs. A 4kW solar system can provide 50-70% of the electricity needed to run your heat pump, reducing your heating costs to just £200-£400 per year.