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Gas vs electric heating: cost comparison

Updated June 2026 7 min read

Quick verdict

On running cost, gas wins clearly. Because electricity costs around four times as much per unit as gas under the current price cap, heating a whole home with direct electric heaters can cost roughly three to four times what the same heat would cost on gas.

Option A

Gas heating

Gas heating usually means a gas boiler feeding radiators and hot water. It has higher installation and servicing costs, but gas is much cheaper per kWh than electricity.

Option B

Electric heating

Electric heating includes direct electric heaters, storage heaters and other electric systems. It is simpler to install and maintain, but electricity has a much higher unit rate.

Side-by-side comparison

Gas central heating is usually far cheaper to run for a whole home, especially where the property is already connected to the gas grid. Electric heating is cheaper to install and simpler to maintain, but direct electric heating can be expensive in winter.

Unit cost (Apr-Jun 2026 cap)

Gas heating

About 5.74p per kWhBetter

Electric heating

About 24.67p per kWh

Cost to heat a home

Gas heating

Much lower for whole-home heatingBetter

Electric heating

Roughly 3 to 4 times more per unit of heat

Installation cost

Gas heating

Gas boiler system, around £2,000 to £4,500

Electric heating

Electric heaters are cheaper to fit, no flue or gas connectionBetter

Best for

Gas heating

Homes on the gas grid with central heating

Electric heating

Flats, smaller homes and off-gas-grid properties

Maintenance

Gas heating

Needs an annual boiler service and gas safety check

Electric heating

Little servicing and no annual gas safety checkBetter

Carbon and future

Gas heating

Fossil fuel, being phased out of new builds

Electric heating

Can run on renewable electricity, lower carbon over timeBetter

Pros and cons

Gas heating pros and cons

Pros

  • ✓Far cheaper per unit to run, so lower whole-home heating bills
  • ✓Effective at heating a whole house quickly through central heating
  • ✓Most homes are already set up for it

Cons

  • -High cost to install or replace a boiler, around £2,000 to £4,500
  • -Needs an annual service and gas safety check
  • -A fossil fuel, and gas boilers are being phased out of new-build homes

Electric heating pros and cons

Pros

  • ✓Cheap and simple to install, with no flue or gas supply needed
  • ✓Close to 100% efficient at the point of use
  • ✓Very little maintenance and works off the gas grid
  • ✓Can be powered by renewable electricity

Cons

  • -Electricity costs roughly 3 to 4 times more than gas per unit
  • -Direct electric heating is expensive to run, leading to high winter bills
  • -Less practical for heating a large home throughout

Cost examples

Home already on the gas grid

For most homes with an existing gas boiler and radiators, gas remains the lower-cost option for whole-home heating.

Likely decision
Gas
Gas unit rate
5.74p/kWh

Small flat or off-grid home

Electric heating can make sense where installation simplicity matters more than running cost, especially in smaller spaces or homes without a gas connection.

Likely decision
Electric
Main benefit
Simple fit

Low-carbon heating plan

A heat pump is electric but much more efficient than direct electric heating, so it needs a separate comparison against a gas boiler.

Next check
Heat pump
Efficiency
3-4x

When to choose Gas heating

  • ›Your home is already connected to the gas grid
  • ›You need affordable whole-home heating
  • ›You already have radiators and a boiler setup
  • ›Winter running cost is the main priority
  • ›You are replacing an existing gas boiler in the short term

When to choose Electric heating

  • ›You live in a flat or smaller home
  • ›The property is off the gas grid
  • ›You want simple installation with little maintenance
  • ›You only need to heat specific rooms for short periods
  • ›You are planning around renewable electricity or a future low-carbon setup

Calculator

Calculate your own figures

Use the calculator below for a personal estimate, or open the full tool for the complete calculator page.

Inputs

Estimate a household electricity bill including standing charge.

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FAQs

Is gas or electric heating cheaper to run in the UK?

Gas is much cheaper to run. Under the April to June 2026 price cap, gas costs about 5.74p per kWh against about 24.67p for electricity, so heating a home with direct electric heaters typically costs three to four times more than gas.

Why is electricity so much more expensive than gas?

Electricity has higher wholesale, network and policy costs built into its unit price, so the price cap sets it far above gas. At current rates each unit of electricity costs over four times as much as a unit of gas.

Is electric heating ever the better choice?

Yes. Electric heating is cheaper to install, needs little maintenance and suits flats, small homes and properties off the gas grid. A heat pump is also electric but far more efficient, which can make its running cost competitive with gas.

How much does it cost to install gas central heating?

A new gas boiler system typically costs around £2,000 to £4,500 fully installed, depending on the boiler and the complexity of the job. Electric heaters are much cheaper to fit by comparison.

Are gas boilers being banned?

Gas boilers are being phased out of new-build homes under future building standards, but there is no ban on replacing a boiler in an existing home. Most households can still install or replace a gas boiler for now.

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