Home Heating Cost & Comparison Calculator
Calculate and compare annual heating costs for gas central heating, heat pump, electric, and oil. Find the cheapest system for your home size.
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Home Heating Guide
What do I need to know about UK Heating Energy Costs 2026?
Energy unit costs (Ofgem price cap, Q3 2026 — 1 July to 30 September): gas: approximately 7.33p/kWh. Electricity: approximately 26.11p/kWh. Heating oil: approximately 7p/kWh (fluctuates significantly). LPG: approximately 9-12p/kWh. Average UK gas boiler: 85-92% efficiency (condensing). A 3-bed semi-detached house with average insulation: approximately 12,000-14,000 kWh annual heating demand. At 6.4p/kWh gas (90% efficiency): 13,000/0.90 × 6.4p = £924/year. Gas remains the cheapest domestic heating fuel per kWh — but electricity-based heating (heat pumps, electric radiators) costs more per kWh of delivered heat unless the electricity price gap narrows significantly.
What's the key thing to understand about Heat Pump Economics?
Heat pumps move heat rather than generate it — using 1 unit of electricity to deliver 2.5-4 units of heat. COP (Coefficient of Performance): a measure of heat pump efficiency. ASHP typical COP: 2.5-3.5 (seasonal average). GSHP: 3.0-4.5. At electricity 28.6p/kWh and COP 3.0: effective heat cost = 28.6/3.0 = 9.5p/kWh. Compare with gas at 6.4p/kWh (90% efficiency) = 7.1p/kWh effective. Heat pumps currently cost more per unit of heat than gas in the UK. This changes if electricity prices fall relative to gas, or if the gap between the two narrows through policy changes to how the two fuels are taxed and priced.
What do I need to know about Insulation First?
The most cost-effective way to reduce heating bills is always to reduce the heating demand first — before changing the heating system. Priority order: loft insulation (if absent): payback 1-2 years, often partially or fully grant-funded. Cavity wall insulation: payback 2-4 years. Double glazing: longer payback (8-15 years) but significant comfort improvement. Draught-proofing: payback under 1 year. Hot water cylinder jacket: payback under 6 months. Heating system improvements: a smart thermostat, zone controls, and regular boiler servicing are all lower-cost ways to reduce heating waste before considering a larger insulation project.
What do I need to know about Heat Pump Grants?
Boiler Upgrade Scheme (BUS) 2024: £7,500 grant toward ASHP installation. £7,500 grant toward GSHP. No means-testing — available to any eligible property. To qualify: must be replacing a fossil fuel boiler (gas, oil, LPG). Must be in England or Wales. Must use an MCS-certified installer. Budget: £7,500 covers a significant portion of typical ASHP installation costs (£10,000-15,000 typical for a 3-bed house). After grant: net cost £2,500-7,500 for ASHP. ROI depends heavily on the gas-to-electricity price ratio — currently, that ratio makes heat pumps a good financial choice for some households and a marginal one for others, which is why running the actual numbers for your home matters more than a general rule.