New survey casts doubt on heat pump savings as two-thirds report losses

A new survey has cast doubt on the cost-efficiency of heat pumps as the green energy tech continues the grow in popularity.

Around 98,000 heat pumps were sold in 2024 – a 64 per cent increase on the previous year. The electricity-powered heating systems offer a low carbon, energy-efficient alternative to traditional gas boilers.

But polling by Censuswide shows 66 per cent of respondents said their homes were more expensive to heat with heat pumps than their previous system.

Air-source heat pumps run on electricity, and work by transferring heat from outside the home to the inside. They are far more efficient than a traditional gas boiler, producing about three to four times the energy they use.

The tech is also more environmentally friendly, moving away from fossil fuels like oil or gas, and the carbon dioxide that these produce.

However, with the cost of electricity per unit for consumers around four times higher than gas (at an average 28p/kWh compared to 6p/kWh), heat pumps are often proving more expensive to run than traditional boilers.

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Only 15 per cent of those surveyed said that their home was less expensive to heat with the tech, while 19 per cent said there was no difference, or they were unsure.

The upfront costs are also higher, with a heat pump installation costing around £13,200, compared with £3,000 for a gas boiler. This can be partially offset by green tech schemes run by the government, currently offering £7,500 towards a new heat pump, and set to be expanded through the newly-announced Warm Homes Plan.

The survey of 1,000 heat pump owners was commissioned by the Green Britain Foundation, run by Dale Vince, green energy leader and Labour donor.

The Ecotricity owner says that households are being “mis-sold” heat pumps, telling The Times: “For people that live in really modern, well insulated homes, then the bill won’t go up very much. But that’s very rare. The reality for people on the ground is a disappointment, an expensive one.”

The actual savings or cost to a household of installing a heat pump depends on the type of boiler being replaced, and how much is being paid for electricity.

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Those replacing an old (G-rated) gas boiler should save £260 a year on average, research by the Energy Saving Trust has found. Meanwhile, the average saving from replacing a G-rated oil boiler is £65.

However, anyone with a new (A-rated) gas boiler stands to lose around £40 a year, while replacing an A-rated oil boiler could result in a massive £220 loss.

Experts are not anticipating that Ofgem’s energy price cap will fluctuate much in 2026, meaning these figures should remain relatively steady over the next 12 months.

A government official said: “The British public is showing record demand for heat pumps, and, together with a time of use tariff, they can save households £130 a year on their energy bills compared to having a gas boiler.

“The warm homes plan — backed by £15 billion of funding — ensures everyone can access the benefits and savings that home upgrades, including heat pumps, can bring,” they told The Times.

“This is alongside the unprecedented steps we took at budget to reduce electricity costs, to cut bills for everyone and see those with electric heating benefit even further.”

Read more: Are heat pumps worth installing in your home? The Independent’s guide