Fuel prices on their own are misleading. Gas is much cheaper per kWh than electricity, but a boiler wastes some of it. Electricity is expensive per kWh, but a heat pump multiplies it several times over. So we compare on one measure: the cost of 1kWh of heat delivered into the room.
Cost per kWh of heat
| Heating type | Assumption | Cost per kWh of heat |
|---|---|---|
| Air to air heat pump (Haier) | 26.32p electricity, seasonal efficiency ~3.6 | ~7.3p |
| Gas boiler | 7.97p gas, 90% efficient | ~8.9p |
| Oil boiler | 70p/litre kerosene, 85% efficient | ~8.0p |
| LPG boiler | 60p/litre, 85% efficient | ~10.0p |
| Storage heaters | Off-peak rate, 1 unit in = 1 unit out | Your off-peak rate (plus heat wasted when you're out) |
| Plug-in, panel or oil-filled heater | 26.32p electricity, 1 unit in = 1 unit out | ~26.3p |
Oil and LPG prices move around. See our oil and LPG page for a table at different prices per litre, or work out your own: divide your price per litre by about 8.8 for oil, or by about 6 for LPG.
What those numbers mean
- Heat pump vs plug-in electric heaters: about a quarter of the cost for the same heat. This is the biggest and most clear-cut saving.
- Heat pump vs storage heaters: roughly a third of the electricity for the same heat, and it's there when you want it. Check your tariff, as explained in storage heater replacement.
- Heat pump vs LPG: usually cheaper per unit of heat at typical LPG prices.
- Heat pump vs oil: roughly level. Cheaper when oil is above about 64p a litre, slightly dearer below that.
- Heat pump vs mains gas: roughly level or slightly cheaper per unit of heat at the current caps, before counting the saving from heating only occupied rooms.
0% VAT on qualifying installations until 31 March 2027. HMRC treats reversible air to air heat pumps as energy-saving materials, so qualifying residential installations currently carry 0% VAT instead of 20%. On a £2,000 install that's around £400 you don't pay. Eligibility depends on the property and installation; this isn't tax advice, and we confirm the VAT treatment on your written quote. See the full 0% VAT guide.
See what heating this room would cost to install. Enter your room sizes and get an itemised Haier price in about two minutes. Single rooms from £1,450.
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| Unit size | Heat pump at full output | Plug-in heater giving the same heat |
|---|---|---|
| 2.5kW | ~18.2p/hr | ~65.8p/hr |
| 3.5kW | ~25.6p/hr | ~92.1p/hr |
| 5.0kW | ~36.6p/hr | ~£1.32/hr |
The heat pump figures are at full output, based on Haier's SCOP ratings. Once the room is warm the unit throttles back, so real hourly costs are usually lower.
The hidden saving: heating only the rooms you use
A boiler usually heats every radiator on the circuit. With a heat pump you heat the office while you work, the living room in the evening, and the bedrooms at night. You buy less heat overall, and the per-unit cost above only tells half the story. It's the reason many customers find the savings bigger in practice than the table suggests.
The caveats, stated plainly
- Heat pump efficiency varies with the weather. It's highest in mild weather and lower in a hard frost. The 3.6 figure is a seasonal average.
- These are unit rates only. Standing charges don't change whichever heating you use, so they're left out.
- Air to air heat pumps don't heat hot water, so hot water costs aren't included here.
- Your tariff matters. Economy 7, fixed deals and time-of-use tariffs all change the maths.
Haier systems, certified installers
We install Haier exclusively. Keeping to one brand means our engineers know the range inside out, we hold the right spares, and costs stay down. Haier systems come with a 6-year warranty as standard when installed by a certified engineer. Our engineers are F-Gas certified, the business is REFCOM registered, and electrical work is carried out to Part P standard. We're based in Buckingham, MK18, and cover Milton Keynes, Buckinghamshire, Northamptonshire and the surrounding area.
Heat pump installers near you
Milton Keynes Buckingham Bletchley Newport Pagnell Aylesbury Bicester Northampton Oxford
See the full list of areas we cover, or check recent installations for real examples of our work.
More heating guides
Air to air heat pumps Home office heating Garden room heating Whole house heating Bungalow heating Oil & LPG alternatives Storage heater replacement Conservatory heating Loft conversion heating Extension heating Garage conversion heating Annexe heating
Common questions
- What is the cheapest way to heat a room in the UK?
- For regular use, an air to air heat pump is usually the cheapest way to heat a room with electricity. At the October to December 2026 cap it delivers heat for about 7.3p per kWh, against about 26.3p for plug-in electric heaters and about 8.9p for a gas boiler.
- Is a heat pump cheaper than gas?
- Per unit of heat delivered, an air to air heat pump is roughly level with or slightly cheaper than a 90% efficient gas boiler at the October to December 2026 caps: about 7.3p against about 8.9p per kWh. Heating only occupied rooms usually adds a further saving.
- Is a heat pump cheaper than oil?
- Roughly level. At 70p a litre, oil in an 85% efficient boiler costs about 8.0p per kWh of heat. Oil needs to be below about 64p a litre to beat the heat pump's 7.3p.
- How much cheaper is a heat pump than an electric heater?
- About a quarter of the cost for the same heat. A 2.5kW heat pump at full output costs about 18.2p an hour, while a plug-in heater giving the same 2.5kW of heat costs about 65.8p an hour.
- Do these figures include standing charges?
- No. Standing charges apply whichever heating you use, so this comparison uses unit rates only.
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