Heat Pumps vs. Gas Boilers: Which Is Right for Your Home?
18 Feb 2025
In this article, we’ll explain how heat pumps work, their cost-effectiveness, and how they compare to gas and electric heating.
You will have no doubt heard the debate between heat pumps and boilers by now.
But which heating system is right for your home?
If you’re a homeowner, you’ll constantly be looking for ways to reduce your energy bills and likely your carbon. So if the debate between heat pumps and boilers brought you here, read on for an evaluation of each to device which is right for you.
Heat Pump vs Gas Boiler
Heat pumps and gas boilers both do the same job, they use energy to heat water to provide your home with heating and hot water, although they do this in different ways, and when it comes to heat pump vs boiler, each option has distinct advantages and disadvantages.
How Do Gas Boilers Work?
Gas boilers burn natural gas to heat water inside them, and the water is usually stored in a cylinder tank. In the case of combi boilers, the water is heated on demand and pumped to wherever it's needed. The cost of a new boiler is low compared to alternative heating systems. They are also cost-effective to run, easy to install, and reliable.
There are three main types of Gas Boilers:
- Combi Boilers: provide both heating and hot water on demand from a single unit.
- System Boilers: heat water and store it in a cylinder.
- Heat-only Boilers: also known as conventional or regular boilers, heat water for the central heating system and rely on a separate cylinder for hot water storage.
How Do Heat Pumps Work?
Heat pumps extract heat from the air or ground and transfer it into your home. Unlike traditional boilers, which generate heat by burning gas or using electricity, heat pumps use a small amount of electricity to move existing heat from one place to another. Of course, this means they are more efficient and often produce 3 to 4 units of heat for every unit of electricity consumed. A heat pump is, in effect, a super-efficient electric boiler.
There are three main types of Heat Pumps:
- Air source heat pumps: Extract heat from the outside air. They are the most common type and are relatively easy to install.
- Ground source heat pumps: Extract heat from the ground, which is a more stable temperature source than air, making them up to 500% efficient.
- Water source heat pumps: Extract heat from a nearby water source, like a lake or river.
Key Facts
| Gas Boilers | Heat Pumps | |
|---|---|---|
| Powered by | Natural Gas | Electricity |
| Cost | £1,600 - £6,000 | £7,000 - £14,000 (Grants are available) |
| Potential energy savings | £415 | £385 |
| Efficiency | At least 90% | Average 300-400% (Up to 500% for Ground Source Heat Pumps) |
| Carbon | High | Low |
| Instillation | One day | One week |
| Lifespan | 10-15 years | 20+ years |
Benefits of a heat pump:
Energy Efficient
Air Source Heat pumps can be up to 300–400% efficient compared to gas boilers, which typically have an efficiency of around 90%. For Ground Source Heat Pumps, this efficiency can be up to a whopping 500%.
Lower Carbon Emissions
Heat pumps significantly reduce greenhouse gas emissions, especially when powered by renewable energy because they use electricity rather than burning fossil fuels.
Lower Running Costs
While electricity can be more expensive than gas per unit, a heat pump's high efficiency often results in lower running costs over time.
Year-Round Use
Many heat pumps function as heating and cooling systems, and can even provide summer air conditioning.
But, they do come with their challenges:
Higher Upfront Costs
Installing a heat pump can be more expensive than a traditional boiler, typically ranging from £7,000 to £14,000, although there are several grant schemes available. Heat pump installation is more expensive due to the specialist's requirements, the cost of the heat pump, and the potential need for upgrading parts of your existing system.
Performance in Cold Weather
Modern heat pumps work well in most UK climates, but their efficiency can drop in extremely cold conditions.
Space Requirement
Some heat pump systems require outdoor units or more significant indoor components, which isn’t ideal for all homes.
Gas Boilers vs. Electric Heating
We all know gas boilers as the most common heating system in the UK, and they have been for decades. They’re pretty reliable and cost-effective in homes connected to the gas grid. But how do they compare to other heating options?
The Pros & Cons of Gas Boilers
| Pros | Cons |
|---|---|
| Lower Initial Cost A new gas boiler installation costs between £2,500 and £4,500, which is significantly lower than a heat pump. | Higher Carbon Footprint Gas is a fossil fuel, so it does contribute to climate change and makes gas boilers less sustainable. |
| Effective Heating Gas boilers provide consistent and powerful heating, which makes them suitable for larger homes and families with high heat demand. | Fluctuating Energy Prices Gas prices are known to fluctuate, which ultimately can lead to unpredictable heating costs. |
| Availability & ease We all know gas boilers as the most common heating system in the UK, most UK homes are already set up for gas heating, which makes replacement straightforward. | Government Phase-Out Plans The UK government aims to phase out gas boilers in new homes by 2025, with further restrictions likely. |
The Pros & Cons of Electric Heating (including Heat Pumps)
Pros | Cons |
|---|---|
Lower Carbon Emissions Electric heating can be powered by renewable sources so produces no direct emissions, therefore it’s the most sustainable option. | Higher Running Costs Electricity prices are typically higher than gas, making direct electric heating (just like storage heaters) expensive. |
| Fewer Maintenance Issues Unlike gas boilers, electric heating systems have fewer moving parts and require less maintenance. | Potential Infrastructure Upgrades Older homes may require electrical upgrades to support new electric heating systems. |
| Future-Proof With the government pushing towards electrification, switching to an electric system could be a long-term investment. |
Grants available & incentives to upgrade your heating system
To encourage the transition to low-carbon heating, the UK government offers several grants and incentives available to homeowners:
Boiler Upgrade Scheme (BUS): Offers grants of up to £7,500 towards installing an air-source or ground-source heat pump in England and Wales. To find a BUS grant, visit the UK Government grants website.
Energy Company Obligation (ECO4): This program provides funding for energy efficiency improvements, including heating upgrades, for low-income households. Some social housing tenants may qualify for this scheme. For more information on eligibility and how to apply, visit gov.uk/energy-company-obligation.
Home Energy Scotland Grants and Loans: Offers financial assistance to Scottish homeowners looking to install renewable heating systems. To learn more and find out how to apply, visit www.mygov.scot/energy-saving-funding/home-energy-scotland-grant-and-loan.
0% VAT on Energy-Saving Materials: The UK government has scrapped VAT on heat pumps and other energy-efficient home improvements until 2027. For a detailed breakdown of this scheme, check out the Federation of Master Builders website.
So, which heating system is right for you?
When it comes to heat pumps vs boilers, choosing between them depends on many factors such as your home’s needs, budget, and long-term goals.
A gas boiler may still be the best choice if you’re looking for a lower-cost, familiar option. But if you want an energy-efficient, low-carbon solution that will future-proof your home, a heat pump is worth considering, especially with the available government incentives.
Before making a decision, we do advise you get a professional assessment of your home’s heating needs and explore available grants to make the switch more affordable.
