Average Heat Pump Running Costs
The annual running cost of an air source heat pump depends on your home’s heat demand, the system’s efficiency (CoP), and the electricity tariff you’re on. For a typical 3-bedroom semi-detached home in the UK (12,000 kWh heat demand per year):
- At CoP 3.0 with electricity at 24p/kWh: approximately £960/year
- At CoP 3.5 with electricity at 24p/kWh: approximately £820/year
- At CoP 3.5 on a smart tariff at 15p/kWh: approximately £515/year
How to Calculate Your Running Costs
Use this formula: Annual heat demand (kWh) ÷ CoP × electricity price (p/kWh) = annual cost. Your heat demand depends on your home’s insulation and size. An energy performance certificate (EPC) or heat loss survey will give you an accurate figure.
Best Electricity Tariffs for Heat Pumps
Several UK energy suppliers offer tariffs designed for heat pump users:
- Octopus Cosy: Cheaper rates during off-peak hours
- Economy 7/10: Lower overnight rates, ideal if you can charge thermal storage overnight
- Intelligent Octopus: Smart integration with heat pump controls
How to Reduce Running Costs
- Improve home insulation to reduce heat demand
- Use weather compensation controls to optimise flow temperature
- Keep the heat pump running at a steady, lower temperature rather than cycling on and off
- Annual servicing to maintain high CoP
- Switch to a heat pump-friendly tariff
Sources: current price cap and smart tariffs.
