Heat pumps: how much energy and money do they save?

Many heat pumps can deliver about three to four units of heat for each unit of electricity used, and UK running costs commonly range from £800 to £1,500 a year depending on the home and the system it replaces.

Heat pumps move heat from the air or ground into homes rather than burning fuel. They are promoted as an alternative to gas, oil, LPG and electric heating because they can be more efficient. Efficiency is often described as a coefficient of performance (COP), and the Energy Saving Trust reports many heat pumps deliver three to four units of heat per unit of electricity. Whether they reduce bills depends on the system being replaced, the home's insulation and how heating is used. Key facts: - Heat pumps transfer heat into homes instead of generating it by burning fuel. - The Energy Saving Trust notes many heat pumps achieve a COP of about 3–4, meaning 3–4 units of heat per unit of electricity. - Even an efficient gas boiler converts roughly 90% of its fuel energy into heat. - Homes replacing oil, LPG or direct electric heating often see the largest running-cost reductions, while many homes switching from gas experience similar or slightly lower annual costs. - Typical UK running costs for homes with heat pumps are reported in a broad range of about £800 to £1,500 a year, varying by household. - The Boiler Upgrade Scheme can reduce upfront costs by up to £7,500, and some suppliers offer heat pump tariffs that cut electricity prices at off-peak times. Summary: Heat pumps can lower energy use and reduce carbon emissions for many households, but financial outcomes vary by the heating system replaced, insulation quality, installation and tariff choices. Savings are often clearest when replacing oil, LPG or direct electric heating; switching from gas commonly yields similar or slightly lower annual costs. Future performance and costs depend on how well a home retains heat, how the system is used, and the terms of available support and tariffs.