Cost & pricing

Are heat pumps cheaper to run than gas?

Why the answer depends on efficiency and the gap between electricity and gas prices.

The short answer

Whether a heat pump is cheaper to run than gas depends on two things: the pump's efficiency (SCOP) and the price ratio between electricity and gas. A gas boiler is around 90% efficient, so a unit of gas gives roughly 0.9 units of heat. A heat pump with a SCOP of 3 to 4 delivers 3 to 4 units of heat per unit of electricity. The catch is that under the UK price cap, electricity costs roughly 3 to 4 times as much per kWh as gas. That means a well-performing heat pump (SCOP around 3.5 or above) on a standard tariff lands roughly level with or below gas running costs, while a poorly set-up heat pump (low SCOP) on a standard tariff can cost more. Heat-pump-specific tariffs with cheaper off-peak electricity tilt the comparison clearly in the heat pump's favour.

The running-cost comparison is genuinely close in the UK, and small details swing it. The maths comes down to efficiency versus the price-per-unit gap between the two fuels.

Heat pump vs gas running cost

The maths behind the comparison

The comparison hinges on a simple idea: a heat pump uses electricity far more efficiently for heating than a boiler uses gas, but each unit of electricity costs more. To find which wins, you compare the cost per unit of useful heat.

If electricity costs about 3.5 times as much as gas, a heat pump needs a SCOP of around 3.5 just to break even with gas on a standard tariff. Above that, it is cheaper; below it, more expensive. This is why getting the SCOP high — through good design, correct sizing and low flow temperatures — is the single most important factor for running cost.

ScenarioEffective heat cost basisOutcome vs gas
Gas boiler (~90%)Gas unit price ÷ 0.9Baseline
Heat pump, SCOP 2.5, standard tariffElec price ÷ 2.5Often more expensive than gas
Heat pump, SCOP 3.5, standard tariffElec price ÷ 3.5Roughly level with gas
Heat pump, SCOP 4, standard tariffElec price ÷ 4Usually cheaper than gas
Heat pump on a heat-pump tariffLower off-peak elec ÷ SCOPClearly cheaper than gas

Illustrative comparison based on the electricity-to-gas price ratio under the UK price cap. Sources: Energy Saving Trust; Nesta. Actual outcome depends on tariff and measured SCOP.

Why SCOP is the deciding factor

SCOP (Seasonal Coefficient of Performance) is the heat pump's average efficiency across a heating season. A well-designed system running at low flow temperatures into correctly sized radiators or underfloor heating achieves a higher SCOP; a system forced to run hot to compensate for small radiators achieves a lower one.

Design quality affects the bill, not just the comfort: two identical heat pumps in two identical houses can have very different running costs purely because one was designed to run at a lower flow temperature. A quality installation that achieves a high SCOP is what makes a heat pump cheaper to run than gas on a standard tariff.

Other factors that affect the comparison

Beyond SCOP and tariff, a few other things influence whether a heat pump beats gas on running cost:

These factors explain why two households with identical equipment can report different experiences. The running-cost outcome is the product of the system, the home and the way it is used and tariffed.

Lose the gas standing charge: if a heat pump lets you disconnect from gas entirely, you stop paying the daily gas standing charge as well as the gas units. Households that keep gas for cooking or a hob do not get this saving, so it is worth factoring into the comparison.

Where tariffs change everything

The standard price cap ratio is not the only option. Several UK suppliers offer heat-pump-specific or time-of-use tariffs with much cheaper electricity at certain times:

On these tariffs, a competent heat pump installation is usually clearly cheaper to run than a gas boiler. The combination of a high SCOP and a favourable electricity tariff is what tips the comparison decisively.

Frequently asked questions

Why is electricity more expensive than gas per unit in the UK?

Per kWh, electricity has historically cost several times more than gas under the UK price cap. This reflects how each is produced, supplied and levied. Because a heat pump runs on electricity, this price gap is the main reason the running-cost comparison with gas is close — the heat pump's efficiency has to overcome the higher price per unit.

What SCOP do I need for a heat pump to beat gas?

As a rough guide, if electricity costs about 3.5 times as much as gas, a heat pump needs a SCOP of around 3.5 to break even with a 90%-efficient gas boiler on a standard tariff. Above that it is cheaper; below it, more expensive. A heat-pump-specific tariff lowers the SCOP needed to come out ahead.

Can a heat pump end up more expensive to run than gas?

Yes — a poorly designed or badly sized heat pump running at high flow temperatures can have a low SCOP, and on a standard tariff that can cost more than gas. The way to avoid this is correct sizing, low flow temperatures (with radiator upgrades where needed) and, ideally, a heat-pump tariff.

Sources & further reading

Figures on this page are typical UK ranges drawn from published sources and depend on your specific home. They are guidance, not a quotation or guaranteed saving.