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Heat pump vs electric heating: which is cheaper?

Updated June 2026 7 min read

Quick verdict

For whole-home heating, a heat pump is much cheaper to run than standard electric heaters because it can deliver around 3 to 4 kWh of heat for every 1 kWh of electricity used. Direct electric heaters are cheaper to install, but usually make sense only for small flats, individual rooms, rentals or homes without a heat pump budget.

Option A

Heat pump

An air-source or ground-source heat pump uses electricity to move heat from outside to inside, typically delivering 3 to 4 kWh of heat for every 1 kWh of electricity.

Option B

Electric heating

Direct electric heating includes panel heaters, storage heaters and electric radiators. They convert electricity directly into heat, so 1 kWh of electricity gives about 1 kWh of heat.

Side-by-side comparison

Heat pumps win on running cost, efficiency and carbon for whole-home heating, but electric heaters are cheaper to install and simpler for small spaces. The right answer depends on home size, insulation, ownership, budget and how long you expect to stay.

Annual running cost (3-bed home)

Heat pump

£1,150 to £1,550Better

Electric heating

£2,400 to £3,200

Upfront installation cost

Heat pump

£7,000 to £13,000 before support

Electric heating

£500 to £2,500Better

Efficiency

Heat pump

Often 300% to 400% seasonal efficiencyBetter

Electric heating

Around 100%

Carbon emissions

Heat pump

Lower annual emissionsBetter

Electric heating

Higher for the same heat demand

Typical lifespan

Heat pump

15 to 20 yearsBetter

Electric heating

10 to 15 years

Government support

Heat pump

May qualify for heat pump grantsBetter

Electric heating

Usually no support

Best for

Heat pump

Whole homes and long-term owners

Electric heating

Small flats, rentals and low upfront budgets

Pros and cons

Heat pump pros and cons

Pros

  • ✓Much cheaper to run than direct electric heaters for whole-home heating
  • ✓Can be three to four times more efficient than electric resistance heating
  • ✓May be eligible for heat pump grant support
  • ✓Lower carbon emissions for the same amount of heat
  • ✓Some systems can also provide cooling in summer

Cons

  • -High upfront installation cost
  • -May need larger radiators, underfloor heating or insulation upgrades
  • -Installation is more disruptive than fitting electric heaters
  • -Efficiency depends on design, weather and the home

Electric heating pros and cons

Pros

  • ✓Low upfront cost
  • ✓Simple installation with no flue or outdoor unit
  • ✓Works well for individual rooms and occasional heating
  • ✓No boiler-style annual servicing requirement

Cons

  • -Expensive to run for whole-home heating
  • -Uses far more electricity than a heat pump for the same heat output
  • -Can produce high winter bills in larger homes
  • -No cooling capability

Cost examples

Small flat

For a low heat demand flat, direct electric heaters can be acceptable because the upfront cost is low and the total annual heat use is limited.

Heat demand
2,500 kWh
Likely fit
Electric possible

3-bed semi

For a typical family home, a heat pump can save a large amount each year compared with direct electric heating because it uses much less electricity for the same heat.

Heat pump
£1,150-£1,550
Electric
£2,400-£3,200

Large detached home

The higher the heat demand, the stronger the case for a heat pump becomes, especially if grant support reduces the upfront cost.

Heat demand
20,000 kWh
Likely fit
Heat pump

When to choose Heat pump

  • ›You need to heat a whole home regularly
  • ›You own the property and plan to stay long term
  • ›You can manage the upfront cost or qualify for support
  • ›Your home is already reasonably insulated or can be upgraded
  • ›Lower carbon heating is a priority

When to choose Electric heating

  • ›You rent or cannot make major heating changes
  • ›You only need to heat one or two rooms occasionally
  • ›You live in a small flat with low heat demand
  • ›You need the cheapest and simplest installation
  • ›A heat pump installation is not practical for the property

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FAQs

Is a heat pump cheaper to run than electric heating?

Yes, usually by a large margin for whole-home heating. A heat pump can deliver around 3 to 4 kWh of heat for every 1 kWh of electricity, while direct electric heating gives about 1 kWh of heat from 1 kWh of electricity.

Can I replace electric heaters with a heat pump?

Yes, but the home may need larger radiators, underfloor heating, insulation improvements or hot water changes. The practical work is much bigger than simply swapping one plug-in heater for another.

Do heat pumps work in old or poorly insulated homes?

They can work, but performance is better in homes with decent insulation and suitable heat emitters. Improving insulation first often gives better comfort and lower running costs.

How long does a heat pump last?

A well-installed heat pump can last around 15 to 20 years with servicing. Direct electric heaters often last around 10 to 15 years, depending on type and use.

Which is better for the environment?

A heat pump is usually better because it uses far less electricity for the same amount of heat. As the UK electricity grid gets cleaner, the carbon case for heat pumps generally improves further.

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