Heat pump vs gas boiler in 2026: which costs less to run?
With the Boiler Upgrade Scheme paying up to £7,500, is a heat pump now a better deal than replacing your gas boiler?
The economics of heat pumps have shifted significantly over the past two years. With gas at 6.04p/kWh and electricity at 24.50p/kWh, the calculation is more nuanced than headlines suggest.
The efficiency advantage
A modern air source heat pump (ASHP) achieves a Coefficient of Performance (CoP) of 3.0–3.5 in typical UK conditions. That means for every 1 kWh of electricity it consumes, it delivers 3–3.5 kWh of heat.
Effective heat cost from a heat pump: 24.5p ÷ 3.2 = 7.66p per kWh of heat
Effective heat cost from a gas boiler (90% efficient): 6.04p ÷ 0.9 = 6.71p per kWh of heat
At current prices, a heat pump is still marginally more expensive to run than a gas boiler — but the gap is smaller than it was.
The Boiler Upgrade Scheme changes the maths
If you qualify for the £7,500 BUS grant, the upfront cost differential largely disappears for many households. A mid-range ASHP installed with appropriate emitters costs £10,000–£15,000 — £7,500 of which the government covers.
When does a heat pump win?
- Your home has EPC rating C or above (or you're willing to insulate first)
- You have space for a unit outside
- You can access a time-of-use electricity tariff like Octopus Cosy or Agile
- Your boiler is approaching end of life anyway
Check whether you qualify for the BUS on our grants page.