How does the Cost of Running an Air Source Heat Pump Compare to a Gas Boiler or Electric Thermal Storage?

The operating cost of your air source heat pump will depend on the type of heating system you're replacing and your electricity bill.

However, a direct comparison isn't straightforward. An air source heat pump is approximately four times more efficient than a gas boiler, but it uses electricity, which is more expensive than natural gas. At current price caps, the average price of electricity is around 26 pence per kilowatt-hour, while the average cost of natural gas is only around 6 pence per kilowatt-hour.

Therefore, theoretically, if your air source heat pump is four times more efficient than a gas boiler, you would only need a quarter of the electricity to heat your home (although this may not be entirely true in practice). But even at a quarter of the cost, electricity is still more expensive than gas if you're using the standard price cap, and not much cheaper if you're using a flat rate. This is why it's worth considering a dedicated heat pump pricing plan.

However, if you're using an older, less efficient boiler or electric thermal storage, the annual energy savings could be significant. According to the Energy Saving Trust, installing an air-source heat pump in a three-bedroom semi-detached house can save a family £260 per year compared to an old, inefficient gas boiler.

Heat pumps tariffs comparison table