When considering a switch to a renewable heating system, most homeowners want to know: “Will it cost more to run than my current heating?”
In this guide, we compare the running costs of air source heat pumps with traditional heating systems — including gas boilers, oil boilers, and electric heaters — to help you make an informed decision.
🔁 Air Source Heat Pump: Running Cost Overview
Air source heat pumps are incredibly efficient. They work by extracting heat from the outside air — even when it’s cold — and using electricity to compress and transfer that heat into your home.
- Typical running cost:
If you use around 18,000 kWh of heat per year the cost of your gas would be around 6.594p per unit (6 June 2025 EDF) x 18000 units = £1187 per year, plus the daily standing charge £0.31221 – annually £113.95p – Total around £1300 - Apply an Efficiency (COP) of just 3 for an ASHP:
meaning for every 1kWh of electricity, you get 3kWh of heat. - Using the same 18,000 units – the calculation is 18000 x 24.594 divided by 3 = £1476. If the COP is 3.5, the cost reduces to £1316. This could be further reduced by using special Heat pump tariffs from your electricity supplier or by adding solar and battery technologies.
🔥 How Do Running Costs Compare to Other Heating Types?
| Heating Type | Average Annual Running Cost (3-bed house) | Efficiency Estimate |
| Air Source Heat Pump | £500–£1,200 | 250%–400% (depending on system & setup) |
| Gas Boiler | £900–£1,400 | 85%–95% (A-rated models) |
| Oil Boiler | £1,100–£1,800 | 80%–90% |
| Electric Heating | £1,800–£2,500 | 100% (but very high cost/kWh) |
All estimates based on standard tariffs and medium usage for a well-insulated UK home.
💷 What Affects the Running Costs of a Heat Pump?
1. Electricity Tariff
Heat pumps run on electricity, so being on a cheaper or time-of-use tariff (an EV tariff or heat pump tarrif) can significantly reduce running costs.
2. Home Insulation
Well-insulated homes make the most of low-flow heating systems like heat pumps. Poor insulation can drive up costs regardless of the heating method.
3. Radiator or UFH Setup
Underfloor heating or larger radiators allow heat pumps to run at lower temperatures — making them more efficient and cheaper to run.
4. Heat Pump Quality & Installation
Proper design and installation are crucial. A poorly sized system will work harder than it should, increasing your bills.
At Latent Heat Edinburgh, we use MCS-certified designs to ensure your system is optimised for efficiency and savings.
🔋 Long-Term Savings Potential
- Oil or LPG (volatile pricing)
- Electric storage heaters
- Or heating a large home with a less efficient system
Switching to a heat pump may mean a higher upfront cost, but the running costs are consistently lower, especially if you’re currently using:
Plus, with the gas boiler phase-out on the horizon, investing now protects you from future regulatory changes and rising fossil fuel prices.
🌿 Better for the Planet, Too
Let’s not forget — air source heat pumps aren’t just cost-effective. They’re also:
- Low-carbon
- Eligible for government grants
- Future-ready
✅ Is a Heat Pump Right for You?
At Latent Heat Edinburgh, we offer free, honest advice to help you work out whether a heat pump is right for your home and budget.
📞 Book a free consultation
📍 Serving Edinburgh, Midlothian, East Lothian & surrounding areas
🛠️ MCS-accredited installers
💸 Help with grant applications