How much does it cost to run a heat pump per year? (UK 2026)

The short answer

The annual running cost of a heat pump depends on three numbers: your home's annual heat demand (in kWh of heat), the heat pump's efficiency (SCOP), and your electricity unit price. The electricity used is the heat demand divided by the SCOP; the cost is that electricity multiplied by your unit rate. A typical UK home might need 8,000 to 15,000 kWh of heat per year for heating and hot water. At a SCOP of around 3.5, that translates to roughly 2,300 to 4,300 kWh of electricity. Multiplied by a standard unit rate, a typical home commonly sees annual running costs in the region of £700 to £1,500, with smaller, well-insulated homes lower and larger or less efficient homes higher. A heat-pump tariff can reduce this further.

There is no single annual figure, but the calculation is straightforward once you know your heat demand, your system's efficiency and your tariff. Here is how to estimate it for your own home.

Annual running cost factors

Typical home heat demand8,000–15,000 kWh/year
Electricity used = heat ÷ SCOP~2,300–4,300 kWh at SCOP 3.5
Typical annual cost (standard tariff)~£700–£1,500
Lowers the costHigher SCOP, heat-pump tariff, better insulation
Raises the costLarger home, poor insulation, low SCOP

How to estimate your own annual cost

The calculation has three steps:

1. Find your annual heat demand. This is the total heat (in kWh) your home needs over a year for space heating and hot water. If you currently use gas, your annual gas consumption (adjusted for boiler efficiency) is a reasonable starting point — roughly 90% of your gas kWh becomes useful heat.
2. Divide by the SCOP. The electricity the heat pump uses is the heat demand divided by the SCOP. A SCOP of 3.5 means the heat pump uses about 1 unit of electricity for every 3.5 units of heat delivered.
3. Multiply by your unit rate. Multiply the electricity figure by your electricity price per kWh to get the annual cost.

For example, a home needing 12,000 kWh of heat at a SCOP of 3.5 uses about 3,430 kWh of electricity. The annual cost is that figure times your unit rate.

Home	Annual heat demand	Electricity at SCOP 3.5	Indicative annual cost (standard tariff)
Small / well-insulated	~8,000 kWh	~2,300 kWh	~£550–£800
Average 3-bed	~12,000 kWh	~3,400 kWh	~£850–£1,200
Larger / less insulated	~16,000+ kWh	~4,600+ kWh	~£1,200–£1,700+
Average 3-bed on heat-pump tariff	~12,000 kWh	~3,400 kWh	Lower than standard tariff

Illustrative UK figures for guidance. Sources: Energy Saving Trust running-cost methodology; Nesta. Actual cost depends on your heat demand, measured SCOP and electricity tariff.

What changes the figure most

Three levers move the annual cost up or down:

Heat demand: the biggest single factor. A well-insulated home with loft and cavity wall insulation and draught-proofing needs far less heat than a leaky one, directly cutting electricity use.
SCOP: a SCOP of 4 instead of 3 reduces electricity use by about a quarter for the same heat. Good design and low flow temperatures push SCOP up.
Tariff: moving from a standard tariff to a heat-pump or time-of-use tariff lowers the unit price for much of the heat pump's electricity, reducing the bill.

Insulation does double duty: improving insulation reduces heat demand, which lowers running cost on any heating system. With a heat pump it also helps the system run at a lower flow temperature, which raises SCOP — so insulation cuts the bill twice over.

A worked example, step by step

To make the method concrete, here is how the calculation runs for an average home:

Step 1 — heat demand: say the home needs 12,000 kWh of heat per year for space heating and hot water combined. (If you currently use gas, take your annual gas kWh and multiply by about 0.9 to estimate the useful heat.)
Step 2 — electricity used: divide the heat demand by the SCOP. At a SCOP of 3.5, that is 12,000 ÷ 3.5 = roughly 3,430 kWh of electricity per year.
Step 3 — cost: multiply the electricity used by your unit rate. At a SCOP of 4 instead of 3.5, the same home would use about 3,000 kWh — roughly 12% less electricity for the same heat, showing how much the SCOP matters.

The same home on a heat-pump or off-peak tariff would pay less than on a standard tariff for that electricity, because much of it can be drawn during cheaper windows. Running the three steps with your own heat demand, an expected SCOP and your actual unit rate gives a figure tailored to your home rather than an average.

Your gas bill is a useful starting point: if you heat with gas now, your annual gas consumption in kWh (on your bills or smart meter) is the easiest way to estimate your heat demand. Multiply it by about 0.9 to allow for boiler losses, then run that figure through the SCOP-and-tariff calculation to estimate the heat pump's annual cost.

Comparing the annual figure to a gas boiler

To compare like for like, work out the gas boiler's annual cost on the same heat demand: heat demand divided by about 0.9 (boiler efficiency), multiplied by the gas unit rate. Because gas is cheaper per unit but the boiler is less efficient, the two annual figures are often close on a standard electricity tariff.

The heat pump tends to win clearly when: the SCOP is high (good design), the home is reasonably insulated, and the household is on a heat-pump or off-peak tariff. It can be roughly level on a standard tariff with an average SCOP. Running the numbers for your own heat demand is the only way to get a figure that reflects your home rather than an average.

One caution when comparing: make sure both figures cover the same thing. The heat pump's annual cost includes hot water as well as space heating, so the gas comparison should include the gas used for hot water too, not just heating. Likewise, if removing the boiler lets you disconnect from the gas grid entirely, the gas standing charge falls away — a small but real annual saving that belongs in the heat pump's favour. And remember the figures move year to year with the weather and with energy prices: a single annual number is a snapshot, not a fixed cost. Treating it as a reasonable estimate for a typical year, and re-running it if your tariff or unit rates change, gives the most honest picture of what a heat pump costs to run.

Frequently asked questions

How do I find my home's annual heat demand?

If you currently heat with gas, your annual gas usage in kWh (shown on your bills or smart meter) is a good starting point. Roughly 90% of that becomes useful heat after boiler losses. That useful-heat figure is approximately the heat demand a heat pump would need to supply. A heat loss survey gives a more precise figure for a specific property.

Does running cost include hot water?

Yes. A heat pump supplies both space heating and hot water (via a cylinder), so the annual heat demand should include both. Hot water typically makes up a meaningful share of the total, especially in well-insulated homes where space heating demand is lower.

Will my running cost change each year?

Yes — it varies with the weather (a cold winter raises heat demand), with electricity prices, and with your tariff. The estimate is a guide based on a typical year; an unusually cold or mild winter will move the figure, as will any change in your electricity unit rate or a switch to 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.