The running cost of a heat pump in the UK depends on your home’s annual heat demand, the heat pump’s efficiency (SCOP), and your electricity tariff. For an average 3-bedroom semi-detached home using 12,000 kWh of heat per year, a heat pump with a SCOP of 3.0 will use about 4,000 kWh of electricity. At an average electricity price of 25p/kWh, this costs around £1,000 per year to run. This is often comparable to or slightly higher than a highly efficient gas boiler, but significantly cheaper than oil, LPG, or direct electric heating.

SCOP stands for Seasonal Coefficient of Performance. It measures the overall efficiency of a heat pump over an entire heating season, rather than at a single moment in time. A SCOP of 3.0 means that for every 1 kWh of electricity the heat pump consumes, it produces 3 kWh of heat energy. The higher the SCOP, the more efficient the heat pump is, and the lower your running costs will be. Modern air source heat pumps typically have a SCOP between 2.8 and 4.0.

Whether a heat pump is cheaper to run than a gas boiler depends on the price difference between electricity and gas, and the efficiency of both systems. In the UK, electricity is typically 3 to 4 times more expensive per kWh than gas. However, because a heat pump is 300% to 400% efficient (SCOP 3.0 – 4.0) compared to a gas boiler’s 90% efficiency, the running costs are often very similar. If you have a smart electricity tariff, solar panels, or an excellent SCOP, a heat pump can be cheaper to run than gas.

The payback period for a heat pump is the time it takes for the annual running cost savings (or increased property value) to cover the initial installation cost. With typical UK installation costs of £8,000 to £15,000, and annual savings of £200 to £800 compared to oil, LPG, or electric heating, the payback period is usually 10 to 20 years. If you are replacing a mains gas boiler, the pure financial payback period may be longer, but you benefit from significantly lower carbon emissions and eligibility for the Boiler Upgrade Scheme grant.

Heat pumps can save you money on energy bills in 2026, particularly if you are currently heating your home with heating oil, LPG, or direct electric heaters. For these fuel types, switching to a heat pump can save hundreds of pounds per year. If you are currently on mains gas, the financial savings on running costs may be minimal, but you can still benefit from the £7,500 Boiler Upgrade Scheme grant, lower maintenance costs, and protection against future gas price volatility.

The average installation cost of an air source heat pump in the UK in 2026 ranges from £8,000 to £15,000, depending on the size of your property, the complexity of the installation, and whether you need to upgrade your radiators or install underfloor heating. Ground source heat pumps are more expensive, typically costing between £15,000 and £25,000 due to the groundworks required. However, the UK government’s Boiler Upgrade Scheme offers a £7,500 grant to significantly reduce these upfront costs.

A heat pump typically saves between 40% and 70% of the carbon emissions compared to a gas boiler. While a gas boiler emits about 0.18 kg of CO2 per kWh of heat produced, a heat pump running on the UK national grid (which has a carbon intensity of around 0.20 kg/kWh) and operating at a SCOP of 3.0 will emit roughly 0.06 kg of CO2 per kWh of heat. As the UK grid continues to decarbonise with more renewable energy, the carbon savings of a heat pump will increase year on year.

No, you do not strictly need underfloor heating for a heat pump to be efficient, but it is highly beneficial. Heat pumps work most efficiently when they produce heat at a lower flow temperature (around 35°C to 45°C) compared to gas boilers (55°C to 70°C). Underfloor heating is perfectly designed for these lower temperatures. If you have radiators, you can still use a heat pump efficiently, but you may need to install larger-sized radiators or improve your home’s insulation to ensure the system can heat your home adequately at a lower flow temperature.