Are Heat Pumps Really Cheaper to Run? Unpacking the Costs & Future Potential
Heat pumps are gaining traction as a key technology in the shift towards enduring home heating. But despite their extraordinary efficiency,many homeowners are questioning if they actually save money compared to customary gas boilers. LetS break down the costs, the current challenges, and what the future holds for heat pump affordability in the UK.
Understanding Heat Pump Efficiency: COP & SPF
at their core, heat pumps don’t create heat; they transfer it. This makes them remarkably efficient. The efficiency is measured by two key metrics:
* Coefficient of Performance (COP): This is the ratio of heat output (in kWh) to electricity input (in kWh) at a specific moment.
* Seasonal Performance Factor (SPF): Because COP fluctuates with outdoor temperature, SPF provides a more realistic picture.It’s the average COP over a typical heating season.
think of it this way: a typical air-source heat pump boasts an SPF of 2.8 (or 280% efficiency). This means for every 1 kWh of electricity used, you get 2.8 kWh of heat. Ground-source heat pumps are even more efficient, frequently enough reaching an SPF of 4.1 (410% efficiency).
Why Aren’t Heat Pumps Always Cheaper? The Electricity Price problem
That high efficiency should translate to lower bills, right? Unfortunatly, not always. The current cost of electricity in the UK is the major stumbling block.
As of September 20, 2025, under the current energy price cap:
* Electricity costs 25.73p per kWh.
* Gas costs just 6.33p per kWh.
Let’s look at a typical UK home needing 9,200 kWh of heat annually:
* Gas Boiler (90% efficiency): Requires 10,222 kWh of gas, costing approximately £647.05 per year.
* Air-Source Heat Pump: Requires only 3,286 kWh of electricity, but at current prices, that totals £845.49 per year.
These figures demonstrate a clear discrepancy. A highly efficient heat pump is currently more expensive to run, and that feels counterintuitive.
Factors Influencing Your Heat Pump Running Costs
While the average figures paint a concerning picture, your actual costs will vary. several factors play a role:
* Insulation: A well-insulated home requires less heating, reducing overall energy consumption.
* Heat Pump Configuration: Proper sizing and installation are crucial for optimal performance.
* heat Pump Model: Different models have varying SPFs.
* Electricity Tariffs: Time-of-day tariffs and solar panel integration can significantly lower your electricity costs.
The Need for Market Reform: Unfair Pricing & Potential Savings
The core issue isn’t the heat pump technology itself,but the structure of the UK’s energy market. The E3G think tank has highlighted this, suggesting reforms could dramatically reduce heat pump running costs. Here’s a breakdown of potential savings:
* Shifting Green Levies: Reallocating existing levies could save you around £150 per year.
* Electricity Market Reform: Preventing unjustified profits from gas-powered plants could save another £90 annually.
* Improved SPF: Optimizing installations to achieve an SPF of 3.5 (from the current average of 2.8) could save £140 per year.
* Off-Peak Electricity Access: Shifting heat pump usage to cheaper off-peak times could save £175 per year.
Combined, these changes could potentially halve heat pump running costs, making them a genuinely cheaper alternative to gas boilers.
The Future of Heat Pump Affordability
The potential is clear. With strategic market reforms and continued improvements in heat pump technology and installation practices, heat pumps can deliver on their promise of affordable, sustainable heating.
Investing in a heat pump is a long-term decision. By staying informed about these developments and advocating for a fairer energy market, you can ensure your heating system is both environmentally responsible and economically sound.
