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How Much Does it Cost to Run an Air Source Heat Pump in the UK?

Air source heat pump outside UK home showing energy-efficient heating system and cost-saving potential

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Considering a change to an air source heat pump but concerned about the running costs? This is completely understandable before making a big decision. And many people wonder about the same things. One of the questions most frequently asked by homeowners is: How much does it cost to run an air source heat pump UK?

Let’s learn the actual air source heat pump running costs, what influences them, and whether a heat pump might save you financially in the long term.

What is an Air Source Heat Pump?

An air source heat pump is a low-carbon system for warming the home and water using heat taken from the outside air. It operates somewhat the opposite of a fridge, drawing in the air, compressing it, and utilising the heat released.

Even during chilly weather, it can take in sufficient heat to make your home toasty. It consumes electricity, but it’s very efficient, usually delivering 3 to 4 times the heat for the electricity it consumes.

How Much Does It Cost to Run an Air Source Heat Pump in the UK?

In 2025, the running cost of an air source heat pump in a typical UK home will be anywhere from £840 to £2,280 per year. Though it is subject to how efficient the system is and how much heat you may be using. This equates to around £70 to £190 a month.

Let’s take a closer look at it:

Even though heat pumps use electricity and electricity costs more per unit than gas, they are far more efficient. It’s for this reason they’re often as cheap to run as a gas boiler, sometimes even cheaper.

Below are the latest energy prices (April to June 2025) as per Ofgem:

  • Electricity: 27.03p per kWh
  • Gas: 6.99p per kWh
 

So yes, electricity costs nearly 4 times more than gas per unit. But there’s a catch — heat pumps don’t use energy the same way gas boilers do.

A standard gas boiler is 85–90% efficient, with a part of this energy being lost. On the other hand, a properly installed air source heat pump with an SCOP of 3.6 (Seasonal Coefficient of Performance) provides you with 3.6 units of heat for each 1 unit of electricity. That’s 350% efficiency.

The majority of UK households consume roughly 11,500 kWh per year of energy for heating, using the standard usage amounts compiled by Ofgem. If the heat pump is running at maximum efficiency, and you occupy a medium-sized property, your overall annual heat bill with a heat pump would probably be between £840 and £2,280. 

How Much Does It Cost to Run a Heat Pump for 1 Hour?

On average, it will cost 31p to 75p an hour to operate an air source heat pump in the UK in 2025. But it all depends on how efficient your heat pump is and the property’s size.

Let’s dissect this. The UK’s electricity rate stands at 27.03p per kWh (per Ofgem). A highly efficient air source heat pump with a 3.6 SCOP provides 3.6 units of heat per 1 unit of electricity consumed. 

This would result in warming the home for an hour using only 1.2–2.8 kWh of electricity at a cost of between £0.31 and £0.75 per hour.

What Affects the Running Cost of a Heat Pump?

The operating cost of a heat pump can differ significantly from one property to another. It’s not only the pump, but your home, the heat patterns you follow, and even the electricity rate all come into it. Here’s what makes all the difference:

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1. Performance of the Heat Pump (COP)

The Coefficient of Performance (COP) indicates how effective the heat pump is. If it has a COP of 3, it generates 3 kWh of heat for each 1 kWh of electricity it consumes. Practically speaking, modern air source heat pumps typically operate with an SCOP of 2.5 to 3.6, a figure which varies with conditions.

More efficient models might be more expensive to install initially, but pay for themselves over a period through lower operating costs.

2. Your Home’s Insulation

This is among the primary factors. Heat pumps operate most efficiently in properly insulated dwellings. Lack of proper insulation requires the system to work harder and consume additional electricity to heat.

Insulation improvements that benefit:

  • Loft Insulation
  • Cavity Wall Insulation
  • Solid Wall Insulation
  • Sealed doors, windows, roof, and floor
 

If your house loses heat, think about adding insulation first, or in conjunction with a heat pump. You’ll notice the difference both in your comfort level and on your bills.

3. Size of Your Property

Bigger, multi-roomed homes with radiators and bathrooms will consume more. To heat a 4-bedroom detached property will therefore be more costly than to heat a single flat. 

A family with more people who are using the hot water every day will raise demand, particularly if you’re running the heat pump to provide both heat and water.

4. Radiators or Heating System Type

Heat pumps are ideal with underfloor heating or new, larger radiators. This is because they distribute heat at lower temperatures than gas boilers, but provide steady heat. 

If you already have smaller or older radiators, these might not be able to transfer heat effectively, resulting in increased operating expenses.

Upgrades might be necessary, costing anywhere from £3,600 to £9,000, based on the system and the property’s size. It’s an investment, to be sure, but one which ensures you’ll be getting the best performance and efficiency from your heat pump.

5. Air Source Heat Pump Maintenance Costs

On average, a complete professional service for an air source heat pump will be £150 to £300 per year. This includes refrigerant level checking, coil cleaning, electrical system checking, and ensuring the unit operates at an optimum level.

Neglecting to maintain can result in larger bills. To be precise, an inefficient system could consume as much as 25% more electricity, some manufacturers claim. That’s needless money — and it adds up over time. Air source heat pump maintenance prevents unexpected breakdowns, maintains the efficiency of your heat pump, and prolongs its life. Learn more about why heat pumps need servicing.

6. Alternative Energy Sources (such as Solar Panels)

If you pair your heat pump with solar panels or solar thermal installations, you can decrease the amount of electricity it has to pull from the grid. Some households even preheat household hot water using solar, which can greatly save energy.

Although installing the setup costs you more, it decreases your running costs over the long term and carbon output.

Is an Air Source Heat Pump Expensive to Run?

Not necessarily. Although electricity costs more per unit than gas, at around 27.03p per kWh to 6.99p for gas, air source heat pumps are significantly more efficient. A decent system with an SCOP of 3.5 can provide 3.5 units of heat per 1 unit of electricity it consumes.

So, while you’re paying a higher price per unit, you require fewer units in total to heat your property. For a lot of households, running costs are about the same as — or even less than — a new gas boiler. And, if you’re upgrading an old LPG or oil system, the savings can be significant.

Free Air Source Heat Pump Grants in 2025

Concerned about the hefty installation price tag for a heat pump? You can worry no longer. Two significant government-sponsored grants in 2025 will pay for the installation and, in certain situations, even do it for nothing at all.

1. ECO4 Scheme

The most favorable plan for you would be the ECO4 scheme. If you are eligible, it will pay for the total installation of an air source heat pump in your property – the equipment, the installation, and even upgrades to insulation or solar panels.

To become eligible, your property should have a low EPC rating score (typically D and below), and the occupier should receive qualifying benefits (such as Pension Credit, Universal Credit, etc.). The property must also be heat-pump compatible – insulated, and preferably not on mains gas, in most instances.

The grant is fully funded by the energy suppliers through the government’s energy efficiency programme with no requirement for payback.

2. Boiler Upgrade Scheme (BUS)

If you’re not eligible for ECO4, the Boiler Upgrade Scheme is an excellent alternative. It provides a £7,500 upfront grant towards the installation of a new air source heat pump. This grant is paid to the installer directly, and they should reduce their price accordingly.

This scheme, unlike the ECO4, is available to a larger number of households — you do not have to be a benefit claimant. It will not typically pay the complete price, though, so you will still be left paying the excess, typically £2,000–£5,000.

Summary of Air Source Heat Pump Running Costs

For an average UK home with a consumption of some 11,500 kWh per year, the running cost of an air source heat pump will be between £840 and £2,280 per year, and around £70 to £190 per month. These estimates are on the basis of the 27.03p per kWh price for electricity and assuming efficient heat pump performance.

The cost will vary with a variety of factors, including the setup of your home, the efficiency of insulation, usage frequency in terms of heat, and the energy tariff you’re on – either a variable or a fixed one. A heat pump, when properly installed and taken care of, in a home with good insulation, will be cheaper to operate and save you even more in the long term.

Frequently Asked Questions

Do air source heat pumps use a lot of electricity?

Air source heat pumps do consume electricity, though they utilise it highly efficiently. A good heat pump can create 3 to 4 units of heat per 1 electrical unit. Although electricity costs a higher price per unit than gas, heat pumps balance it out by being greatly more efficient.

Is an air source heat pump cheaper than gas heating?

A heat pump can be as cheap, and even cheaper, than a traditional gas central heating system, particularly if you are upgrading an old boiler. Although it might be cheaper per unit, a heat pump consumes much less energy in total. And you might save even more in the long run with grants and reduced maintenance requirements.

Can I get a grant to help with ASHP installation?

Yes. The ECO4 scheme can fund 100% of the installation cost of an air source heat pump if you qualify. And this can even cover additional features such as solar panels. The Boiler Upgrade Scheme (BUS) provides a grant of £7,500 for the majority of homeowners across England and Wales.

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