Are Heat Pumps Expensive to Run?

Here’s What You Need to Know.

With energy prices still a major concern, many homeowners are looking for ways to cut their heating costs. Heat pumps are gaining popularity as an energy-efficient alternative to gas boilers, but some people are still unsure whether they’re actually cheaper to run.

The truth is, when installed correctly and used the right way, a heat pump can be one of the most cost-effective ways to heat your home. If you live in Kent, Essex, London, or Surrey, a properly designed system could lower your bills while keeping your home comfortable year-round.

"A well-installed heat pump can cut your heating costs by over £400 a year—making it one of the most cost-effective ways to keep your home warm while reducing your carbon footprint."

Heat Pumps Can Be Cheap to Run—If Set Up Properly

One of the biggest factors in keeping running costs low is making sure the heat pump is installed correctly. A well-designed system, tailored to your home’s needs, will always be cheaper to run than a gas boiler.

The Right Size for Your Home

If a heat pump is too small, it will struggle to keep your home warm and end up using more electricity than necessary. On the other hand, if it’s too big, it will short-cycle (turn on and off too frequently), reducing efficiency and causing unnecessary wear and tear. Proper sizing is key.

Paired with Good Insulation

Another important factor is insulation. Heat pumps work best in homes that retain heat well. If your house isn’t well insulated, the system has to work harder to maintain the temperature, which increases running costs.

Installed by Professionals

And then there’s the installation itself. Heat pumps need to be set up correctly from the get-go. A well-installed air-source heat pump, for example, can be up to 300% efficient, meaning it produces three times more heat than the electricity it uses. Compare that to a gas boiler, which maxes out at around 90% efficiency, and the benefits become clear.

(Source: The Eco Experts)

How to Use a Heat Pump the Right Way

Many people make the mistake of using a heat pump like a traditional gas boiler—turning it on and off throughout the day. But heat pumps work best when they run low and slow, keeping your home at a steady, comfortable temperature without wasting energy.

The best approach is to set it and forget it—keep it running steadily, adjusting only slightly when needed to reduce energy bills.

The Right Tariff Can Make All The Difference

Another way to keep running costs down is to make sure you’re on the right electricity tariff. Since heat pumps run on electricity, your tariff can have a huge impact on your energy bills. The good news is that many suppliers now offer smart tariffs designed specifically for heat pumps, allowing you to take advantage of lower rates during off-peak hours. These are called Time-of-Use tariffs.

How Much Does It Actually Cost to Run a Heat Pump?

So, how much can you expect to pay if your heat pump is set up and used correctly? Here’s a rough comparison:

• A typical gas boiler costs between £1,200 - £1,500 per year to run.

• An air-source heat pump can reduce that to £850 - £1,200 per year.

• A ground-source heat pump, which is even more efficient, could bring costs down to £700 - £1,100 per year.

(Source: Energy Saving Trust)

That’s a potential saving of £400+ per year, especially if you take advantage of a smart tariff. And beyond just saving money, switching to a heat pump significantly reduces your home’s carbon footprint—helping the UK move toward cleaner, greener energy.

So, Are Heat Pumps Worth It?

Absolutely—if they’re set up right. The key is:

• Correct installation

• Running it efficiently (low and slow)

• Choosing the right tariff

Heat pumps are one of the best ways to heat your home cost-effectively. While the upfront cost can be higher than a gas boiler, the long-term savings—and the environmental benefits—make them a smart investment.

How Assembly Renewables Can Help You Make the Switch?

With government support and Assembly Renewables’ expertise in sustainable installations, you can lower your energy costs while making a positive environmental impact. Whether you’re looking to install a solar PV system or an air-source heat pump, our team provides everything from design to installation. We understand that every home is unique, and we’ll work with you to create a solution that meets your needs.

For more details on how you can benefit from the latest budget initiatives, contact us or call 01622 233790.

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