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How Much Does a Heat Pump Cost to Run?
The cost of running an air source heat pump depends on how much heating your home needs, the efficiency your system achieves and the price you pay for electricity.
- 13 min read
- Updated October 2026
- By Phil · Heat Loss Hub
A correctly designed heat pump can provide efficient heating and hot water, but there isn’t a single annual running cost that applies to every three-bedroom house, bungalow or larger property.
For example, a home requiring 12,000 kWh of useful heating and hot water annually could consume approximately 3,910 kWh of electricity under the efficiency assumptions used in this guide.
At the average October–December 2026 electricity rate of 26.32p/kWh, that would cost approximately £1,029 per year, excluding standing charges and any electrical consumption not included in the calculation.
That’s an illustrative annualised figure, not a prediction for every home or a guarantee of future energy prices.
QUICK ANSWER
In our example, running costs average £86 per month or £2.82 per day across the year. Actual winter costs can be considerably higher, and the efficiency of the complete heating system makes a substantial difference.
What Determines a Heat Pump's Running Costs?
Three main factors determine how much electricity a heat pump uses and what that electricity costs.
1. Annual heating demand
This is the amount of useful heat required to keep the property comfortable throughout the year, together with the energy needed for domestic hot water.
2. Seasonal efficiency
This describes how much useful heat the heat pump delivers relative to the electricity it consumes over the relevant period.
3. Electricity tariff
This is the price paid for each kilowatt-hour of electricity, including any variation between peak and off-peak periods.
A larger heat pump doesn’t automatically cost more to run than a smaller one. The building’s heating demand and the equipment’s efficiency are more important than its advertised capacity.
It’s also important to distinguish kilowatts (kW), which measure power, from kilowatt-hours (kWh), which measure energy.
A heat pump’s rated heating capacity doesn’t tell you how many kWh of electricity it will consume over a year.
How Much Heat Does Your Home Need Each Year?
Before estimating running costs, you need an indication of the property’s annual useful heat demand.
This is different from its design heat loss.
Design heat loss, expressed in kW, establishes the heating capacity required during specified cold-weather conditions.
Annual heat demand, expressed in kWh, represents the total useful heating energy needed over the year.
A house with an 8 kW design heat loss doesn’t require 8 kW of heating continuously throughout the year.
When the weather becomes milder, the difference between indoor and outdoor temperatures generally decreases, so less heating is required.
Annual demand can be estimated using several sources of information:
- Building heat-loss calculations combined with appropriate annual energy modelling.
- Available EPC space-heating and hot-water demand estimates.
- Historical gas, oil or LPG consumption, adjusted for boiler efficiency and non-heating uses.
- Suitable modelling based on weather, building characteristics and occupancy.
Each method has limitations.
An EPC can provide a useful starting point, but its standardised occupancy and calculation assumptions may differ from how a household actually uses its home.
Historical fuel consumption can be valuable, but allowances may be needed for cooking, hot water, boiler efficiency and unusual heating habits.
For a heat-pump design, accurate room-by-room heat loss calculations establish the heating capacity required. Annual energy modelling is then needed to produce an electricity-consumption estimate.
A peak heating load and an annual heating-energy requirement are not interchangeable.
COP, SCOP and SPF — Which Figure Should You Use?
Heat-pump efficiency is often expressed using three different measurements.
| Measurement | What it means |
|---|---|
| COP | Efficiency at a particular operating condition |
| SCOP | Seasonal efficiency under defined test and calculation conditions |
| SPF | Seasonal performance of a system within a specified measurement boundary |
Coefficient of Performance (COP)
COP compares useful heat output with electrical input at a particular operating condition.
For example, a COP of 4 means the heat pump delivers 4 kWh of useful heat for every 1 kWh of electricity included in that measurement.
However, COP changes with outdoor temperature, heating-water temperature and operating conditions.
Seasonal Coefficient of Performance (SCOP)
SCOP accounts for performance over a defined heating season using standardised conditions.
Manufacturers publish SCOP figures to help describe and compare equipment efficiency.
These figures are useful, but they don’t guarantee the performance of a particular installation.
A manufacturer may quote different SCOP values for different heating-water temperatures and climate assumptions.
Seasonal Performance Factor (SPF)
SPF describes seasonal performance over a defined system boundary.
Depending on that boundary, the calculation may include electricity consumed by circulation pumps, controls, supplementary heaters and other relevant equipment.
A manufacturer’s space-heating SCOP shouldn’t automatically be applied to domestic hot water or every electrical input associated with the installation.
For realistic running-cost estimates, the heating demand and the efficiency figures must cover matching parts of the system.
Where space heating, hot water and additional electrical loads are modelled separately, we can produce a more transparent estimate.
How to Calculate Heat Pump Running Costs
The basic calculation is straightforward.
Annual electricity consumption:
Electricity used (kWh) = Useful heat required (kWh) ÷ Seasonal efficiency
Annual variable electricity cost:
Running cost (£) = Electricity used (kWh) × Electricity price (£/kWh)
For example, a property requiring 10,000 kWh of useful space heating annually, with a predicted seasonal space-heating efficiency of 3.5, would need:
10,000 ÷ 3.5 = 2,857 kWh of electricity
At 26.32p/kWh:
2,857 × £0.2632 = approximately £752
However, this only accounts for the space heating covered by those assumptions.
Domestic hot-water production may operate at a different efficiency. Auxiliary or supplementary electrical consumption may also need including if it falls outside the performance figure being used.
For a complete estimate, we should consider those elements rather than simply applying one optimistic SCOP figure to everything.
Worked Example — Annual Heat Pump Running Costs
Let’s consider a hypothetical home requiring 12,000 kWh of useful heating and hot water annually.
We’ll divide that demand into two components:
- Space heating: 10,000 kWh annually.
- Domestic hot water: 2,000 kWh annually.
For this example, we’ll assume a seasonal space-heating efficiency of 3.5 and a hot-water efficiency of 1.9.
These are illustrative assumptions, not guaranteed outcomes for a particular heat pump.
Step 1 — Calculate Space-Heating Electricity
10,000 kWh ÷ 3.5 = 2,857 kWh
Step 2 — Calculate Hot-Water Electricity
2,000 kWh ÷ 1.9 = 1,053 kWh
Step 3 — Calculate Total Electricity Consumption
| Heating component | Useful heat | Assumed efficiency | Electricity |
|---|---|---|---|
| Space heating | 10,000 kWh | 3.5 | 2,857 kWh |
| Domestic hot water | 2,000 kWh | 1.9 | 1,053 kWh |
| Total | 12,000 kWh | — | 3,910 kWh |
Step 4 — Apply the Electricity Tariff
Using the October–December 2026 average electricity unit rate:
3,910 kWh × £0.2632 = approximately £1,029 per year
This corresponds to an average of approximately £86 per month.
It is not a typical winter bill, and it doesn’t include electrical inputs that haven’t already been covered by the assumed efficiencies.
Why Separate Hot Water?
If we incorrectly applied the space-heating efficiency of 3.5 to the entire 12,000 kWh demand, we would calculate:
12,000 ÷ 3.5 × £0.2632 = approximately £902
That’s £127 less than our separately calculated example.
The difference arises because hot-water production was assumed to operate at a lower seasonal efficiency.
This illustrates why the boundary of an efficiency estimate matters.
All figures are hypothetical and use the same assumed useful-heat requirements. Actual performance, additional electrical loads and future tariffs will change the result.
Current UK Electricity Prices for Heat Pumps
Energy tariffs have a direct influence on the cost of running a heat pump.
For 1 October to 31 December 2026, Ofgem’s average capped rates for customers paying by Direct Debit on default tariffs in Great Britain are:
| Energy | Unit price | Daily standing charge |
|---|---|---|
| Electricity | 26.32p/kWh | 54.83p |
| Mains gas | 7.97p/kWh | 29.68p |
Source: Ofgem energy price cap unit rates. Published national averages for October–December 2026.
The figures include 5% VAT on gas. Domestic electricity VAT has been temporarily removed for the period from October 2026 to March 2027.
Actual prices vary by region, payment method and tariff.
These rates are being used to illustrate running costs. They aren’t a prediction of what electricity or gas will cost throughout the next twelve months.
When comparing a proposed installation, using the household’s actual tariff or a clearly identified alternative tariff will give a more relevant estimate.
Is a Heat Pump Cheaper to Run Than a Gas Boiler?
A heat pump can be cheaper to run than mains gas, but the result depends on seasonal efficiency, boiler efficiency and energy prices.
Using the same hypothetical property from our annual example, the household requires 12,000 kWh of useful heat.
If an existing gas boiler operates at an assumed seasonal efficiency of 90%, the gas required would be:
12,000 ÷ 0.90 = 13,333 kWh of gas
At 7.97p/kWh, the variable gas cost would be approximately £1,063 annually.
Our heat-pump example costs approximately £1,029.
| Heating system | Annual energy purchased | Variable energy cost |
|---|---|---|
| Heat pump — separate space-heating and DHW assumptions | 3,910 kWh electricity | £1,029 |
| Gas boiler — 90% efficiency | 13,333 kWh gas | £1,063 |
Under these assumptions, the heat pump is approximately £34 cheaper annually in variable energy costs.
This is not a whole-house bill comparison. It excludes standing charges, installation costs, maintenance and other household energy use.
The gas-boiler efficiency assumption is also simplified; actual space-heating and hot-water performance may differ.
What Seasonal Efficiency Matches the Cost of Gas?
We can calculate the break-even seasonal efficiency using:
Break-even efficiency = Electricity unit price × Gas boiler efficiency ÷ Gas unit price
At October 2026 rates:
26.32 × 0.90 ÷ 7.97 = 2.97
That means a heat pump achieving a comparable whole-system seasonal efficiency of approximately 2.97 would match the variable energy cost of a 90%-efficient gas boiler under those tariff assumptions.
The effective combined efficiency of our worked heat-pump example is approximately 3.07.
That explains why its calculated variable energy cost is slightly lower than gas.
The break-even figure is not a recommended design SCOP or a forecast. It changes whenever energy prices or assumptions change.
For homes replacing oil or LPG, the comparison should use those fuels’ current prices and actual boiler performance.
Read our separate guides to heat pumps versus oil and heat pumps versus LPG.
How Much Does a Heat Pump Cost to Run in Winter?
Heat pumps generally consume more electricity during colder months because the building requires more heating.
At the same time, the heat pump may operate at lower efficiency when extracting heat from colder outdoor air or producing higher-temperature water.
This is why the annual monthly average doesn’t represent what a homeowner will necessarily pay in December or January.
Example — A Cold Winter Month
Let’s use the same hypothetical home, but examine one particularly heating-intensive month.
Assume:
- Space-heating demand: 1,700 kWh.
- Domestic hot-water demand: 167 kWh.
- Monthly space-heating efficiency: 2.8.
- Monthly hot-water efficiency: 2.0.
The calculation becomes:
| Component | Electricity |
|---|---|
| Space heating: 1,700 ÷ 2.8 | 607 kWh |
| Hot water: 167 ÷ 2.0 | 84 kWh |
| Total | 691 kWh |
At 26.32p/kWh, that is approximately £182 for the month, excluding separately accounted-for electrical loads and standing charges.
Compare that with the £86 monthly average from our annual example.
There is no contradiction. The winter month represents a much larger proportion of annual heating demand, and its assumed space-heating efficiency is lower.
This is an illustrative monthly scenario, not a weather forecast or a prediction of January costs.
Many energy suppliers spread payments through monthly Direct Debits, but the underlying electricity consumption still changes throughout the year.
Domestic hot-water demand continues during summer, while space-heating demand may become very low or disappear for extended periods.
Why Heat Pump Design Makes Such a Difference to Running Costs
The efficiency achieved by a heat pump depends on more than the manufacturer’s published rating.
The heating system around the equipment can substantially influence its performance.
Heating Flow Temperature
Heat pumps generally work more efficiently when they don’t have to produce unnecessarily hot water.
A system designed to heat the rooms at 45°C flow temperature will often have an efficiency advantage over an otherwise comparable arrangement requiring 55°C.
However, the exact difference depends on the equipment and operating conditions. There isn’t a universal percentage saving for every 10°C reduction.
Radiator and Underfloor Heating Design
Radiators must provide sufficient output at the intended operating temperatures.
Increasing selected radiator sizes can sometimes allow lower flow temperatures without compromising comfort.
Underfloor heating can also operate effectively at low water temperatures when properly designed.
Weather Compensation
Weather compensation adjusts the heating-water temperature according to outdoor conditions.
Rather than operating at the coldest-day design temperature throughout winter, the system can supply cooler water when the weather is milder.
Appropriate commissioning and heating-curve settings are important.
Pipework, Hydraulics and Controls
The system must circulate sufficient water while maintaining suitable heat distribution.
Restrictive pipework, unsuitable hydraulic arrangements, unnecessary temperature mixing and poorly coordinated controls can affect performance.
Excessive cycling may also influence efficiency, although some cycling is normal and doesn’t automatically indicate a design fault.
Hot-water controls and heating schedules should suit the household’s actual requirements.
The most efficient installation is not necessarily the one with the highest advertised SCOP. It is the complete system that delivers the required comfort while using electricity effectively.
Explore our Heat Pump Flow Temperature & Controls guides.
Can a Heat Pump Tariff or Solar PV Reduce Running Costs?
Specialist electricity tariffs can make a meaningful difference to heat-pump running costs.
Some offer lower rates during specific periods, while others provide preferential electricity rates for eligible heat-pump installations.
However, the lowest advertised off-peak rate isn’t necessarily the best tariff for a particular household.
What matters is the price actually paid for the electricity consumed.
Time-of-Use Tariffs
A time-of-use tariff may offer cheaper electricity overnight or at selected times.
Hot-water heating can sometimes be scheduled to take advantage of lower rates, provided the cylinder and controls are suitable.
Space-heating demand is more difficult to shift entirely because the building still needs maintaining at comfortable temperatures.
The correct comparison uses the weighted average electricity price across the actual consumption profile.
Standing Charges
Standing charges also matter when comparing heating systems.
Most homes already pay an electricity standing charge, regardless of whether they have a heat pump.
If a homeowner removes their gas connection entirely, the avoided gas standing charge may improve the overall financial comparison.
At the October 2026 national average of 29.68p per day, the gas standing charge represents approximately £108 annually.
However, that saving won’t normally apply if the household retains gas for cooking or another purpose.
Solar PV
Solar panels can help offset electricity purchased from the grid, particularly during suitable daylight conditions.
However, solar generation is generally lower during the darkest winter months when space-heating demand is high.
Self-consuming solar electricity can also mean giving up revenue that might otherwise have been earned by exporting it.
A meaningful comparison should consider that opportunity cost rather than automatically treating every solar-powered kWh as free.
How Accurate Are Predicted Heat Pump Running Costs?
A running-cost estimate is a prediction based on assumptions, not a guaranteed future bill.
Actual consumption will depend on factors including weather, indoor temperatures, hot-water use, occupancy, controls, electricity tariffs and achieved system efficiency.
Even a carefully designed system can perform differently from its predicted annual figures.
How Much Difference Does Seasonal Efficiency Make?
Using our hypothetical property’s 10,000 kWh space-heating demand and 2,000 kWh hot-water demand, we can vary the assumed space-heating efficiency while keeping hot-water efficiency at 1.9.
| Space-heating efficiency | Total annual electricity | Annual variable cost |
|---|---|---|
| 3.0 | 4,386 kWh | £1,154 |
| 3.5 | 3,910 kWh | £1,029 |
| 4.0 | 3,553 kWh | £935 |
All examples use 26.32p/kWh, with unchanged heat demand and hot-water efficiency. Figures are rounded.
These aren’t guaranteed worst-case, expected and best-case outcomes.
They simply demonstrate the sensitivity of running costs to one important assumption.
A change in building heating demand or electricity tariff could have an equally important effect.
For that reason, a useful estimate should explain the input values and calculation method rather than providing a single annual figure without context.
What Should a Heat Pump Running-Cost Estimate Include?
If you’ve received an installation quotation with a running-cost projection, it’s reasonable to ask how that figure was calculated.
A transparent estimate should identify the relevant assumptions and outputs.
| Information | Why it matters |
|---|---|
| Annual space-heating demand | Establishes useful heat required |
| Annual hot-water demand | Accounts for domestic hot water separately |
| Heating design flow temperature | Influences efficiency |
| Proposed heat pump and performance assumptions | Identifies the equipment and predicted operation |
| Seasonal efficiency figures | Explains the electricity calculation |
| Auxiliary and supplementary electricity | Identifies additional consumption |
| Estimated annual electricity | Shows the expected kWh requirement |
| Electricity unit rate | Converts consumption into cost |
| Existing heating fuel and efficiency | Supports meaningful comparisons |
| Standing-charge treatment | Helps avoid misleading bill comparisons |
Not every estimate will use precisely the same methodology, and an MCS pre-sale estimate has its own prescribed calculation requirements.
What matters is that the assumptions are identifiable, relevant and not presented as guaranteed performance.
Where different quotations produce substantially different running-cost predictions, an Independent Design Review can help assess the underlying figures.
Frequently Asked Questions
Daily running costs vary throughout the year. Our hypothetical £1,029 annual example averages approximately £2.82 per day, excluding standing charges and additional electrical inputs. Actual winter days may cost considerably more, while summer space-heating costs may be negligible.
That depends on the annual useful heat demand and achieved efficiency. For example, 10,000 kWh of space heating at a seasonal efficiency of 3.5 requires approximately 2,857 kWh of electricity. Hot water and any separately accounted-for electrical loads must also be included.
They can be. At October 2026 average capped unit rates, a heat pump needs an equivalent seasonal efficiency of approximately 2.97 to match the variable energy cost of a 90%-efficient gas boiler. Actual savings depend on the installation, tariffs, household demand and the efficiency boundaries being compared.
Daily electricity consumption generally increases in colder weather because the building needs more heat, and the heat pump may operate less efficiently. However, short periods of cold weather should be considered within the annual performance assessment. Costs also depend on the model and design temperatures.
Potentially. A tariff with lower electricity prices during useful operating periods can reduce the cost of heating. The benefit depends on when the heat pump consumes electricity, any higher peak rates and the household’s other electricity usage.
Possible causes include greater-than-predicted heating demand, higher operating temperatures, unexpected hot-water or supplementary-heater use, controls and system performance. High consumption doesn’t automatically mean the heat pump is faulty or badly designed. Read Heat Pump Using Too Much Electricity: Could the Design Be Wrong? for a more detailed assessment.
CONTENTS
- 01 What determines running costs
- 02 Annual heat demand
- 03 COP, SCOP and SPF
- 04 How to calculate running costs
- 05 Worked example
- 06 Current electricity prices
- 07 Heat pump vs gas boiler
- 08 Winter running costs
- 09 Why design matters
- 10 Tariffs and solar PV
- 11 How accurate are estimates?
- 12 What an estimate should include
- 13 Frequently asked questions
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A meaningful running-cost prediction starts with understanding how much heat your property needs and how efficiently the proposed system can provide it.
At Heat Loss Hub, we provide independent room-by-room heat loss calculations, heat-pump system design and technical reviews. We can help establish the heating demand, assess proposed operating temperatures and review the assumptions behind predicted electricity consumption as part of an appropriately scoped service.
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Whether you’re planning a new installation or reviewing quotations you’ve already received, we can help you understand the technical and financial assumptions before committing.
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