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Air Source Heat Pump vs Gas Boiler: Running Costs Explained

By Staff4dshire Group · Margav Energy

Whether a heat pump or a gas boiler is cheaper to run is not a fixed answer. It depends on how efficient each system is in your home and on the price you pay for gas and electricity, both of which change. This guide explains the factors so you can judge the numbers for yourself, rather than relying on someone else's average.

Wall-mounted gas boiler and flue in a plant room during heating works

How each system makes heat

A gas boiler burns gas to heat water. Modern condensing boilers are efficient, but they always deliver slightly less heat than the energy in the gas they burn.

An air source heat pump works like a fridge in reverse, moving heat from the outside air into your heating system. It uses electricity to run, but delivers several units of heat for each unit of electricity it uses. That ratio is called the coefficient of performance (COP), and over a whole year it is described as the seasonal performance (SCOP).

The comparison that matters

Electricity usually costs more per unit than gas. So the running cost question comes down to this: is the heat pump's seasonal efficiency higher than the ratio between your electricity price and your gas price? If it is, the heat pump should cost less to run; if not, the boiler will.

That is why two neighbours can get different answers. Prices, tariffs and the heat pump's real-world efficiency all move the result, so it is worth doing the comparison with your own figures rather than a national average.

Consumer unit with solar PV and battery circuits

What makes a heat pump efficient (or not)

Heat pumps are most efficient at low flow temperatures. Homes with good insulation and radiators sized for lower temperatures let the heat pump run gently for longer, which keeps efficiency high. Undersized radiators force higher flow temperatures and push running costs up.

Design matters as much as the unit. A room-by-room heat loss calculation, correctly sized emitters, a suitable hot water cylinder and sensible controls are what separate a heat pump that performs from one that disappoints.

Tariffs, standing charges and solar

Some energy suppliers offer tariffs designed for heat pumps or with cheaper off-peak periods, which can change the comparison in the heat pump's favour. If you remove gas from the house completely, you also stop paying the gas standing charge.

Solar PV can supply some of a heat pump's electricity during the day, and a battery can store cheaper or self-generated electricity for later. See our solar and battery guide for more.

When a new boiler still makes sense

A heat pump is not right for every home straight away. If insulation upgrades or radiator changes are not practical yet, or the budget is better spent elsewhere first, a new efficient boiler with good controls can be the sensible choice for now. The government's Boiler Upgrade Scheme has offered grants towards heat pumps for eligible homes; check the current rules on GOV.UK.

Margav Energy installs both, so we can compare the options honestly for your home. See boiler installation in Rugeley, air source heat pumps in Lichfield or Margav Energy.

For workplaces and larger sites, Margav Energy works with Staff4dshire Groundworks & Utilities to deliver the infrastructure for major EV charging projects across the UK. Commercial EV charging infrastructure

Quick checklist

  • Find your current gas and electricity unit prices
  • Ask for a room-by-room heat loss calculation
  • Check radiator sizes against the design
  • Look at heat pump or off-peak tariffs
  • Consider insulation upgrades first
  • Check current grant eligibility on GOV.UK

Frequently asked questions

Is a heat pump always cheaper to run than a gas boiler?

No. It depends on the heat pump's real efficiency in your home and the ratio between your electricity and gas prices. A well-designed system in a well-insulated home is far more likely to come out ahead.

Do heat pumps work in cold weather?

Yes. Their efficiency falls as the outside temperature drops, which is why correct sizing from a heat loss calculation matters, but properly designed systems heat homes through UK winters.

Can I keep my radiators with a heat pump?

Often some can stay. A heat loss survey shows which rooms need larger radiators to work at lower flow temperatures.

About Staff4dshire Group. Staff4dshire Group is based at Unit 7 & 8 Kimberley Business Park, Rugeley, Staffordshire. Our companies cover building and landscaping (Staff4dshire Properties), roofing (Staff4dshire Roofing Specialists), scaffolding (Staff4dshire Scaffolding), groundworks, drainage and utilities (Staff4dshire Groundworks & Utilities), plant hire (Staff4dshire Plant Hire) and renewables (Margav Energy). We work for homeowners, developers, principal contractors and local authorities across Staffordshire, Birmingham and the West Midlands, and we are a registered supplier with Walsall, Tamworth, Sandwell, Dudley, Birmingham, Telford & Wrekin, Wakefield and Bradford councils.
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