Heat Pump vs Gas Boiler: The Real Cost Comparison 2026
A comprehensive breakdown of upfront costs, running costs, and long-term savings between heat pumps and gas boilers in 2026.
With gas boiler bans coming and the £7,500 Boiler Upgrade Scheme available, more UK homeowners are considering heat pumps. But how do the costs really compare? Let's break down the numbers.
Upfront Installation Costs
Gas Boiler
- Combi boiler installation:£2,000 - £3,500
- System boiler installation:£2,500 - £4,000
- Average total cost:£2,750
Air Source Heat Pump
- Full installation cost:£10,000 - £18,000
- Less BUS grant:-£7,500
- Your actual cost:£2,500 - £10,500
- Average after grant:£6,500
Verdict: With the BUS grant, heat pumps start at a similar price to premium gas boilers. Without the grant, they cost 3-6x more upfront.
Annual Running Costs
Running costs depend heavily on your home's insulation, heating habits, and current energy prices. Here's the average for a typical 3-bedroom semi-detached home:
Gas Boiler
per year average
- ✓ Cheap gas prices (10p/kWh)
- ✓ Established technology
- ✗ Rising gas prices likely
- ✗ High carbon emissions
Heat Pump
per year average
- ✓ 300-400% efficiency
- ✓ Lower carbon footprint
- ✗ Higher electricity prices (24p/kWh)
- ✓ Costs falling as grid decarbonizes
Important: Running costs vary massively based on your home. Well-insulated homes with underfloor heating can see heat pump running costs as low as £600/year. Poorly insulated homes may see £1,600+/year.
Maintenance Costs
- Gas Boiler:£80-120/year for annual service. Expect £500-1,500 repair costs every 5-7 years.
- Heat Pump:£100-150/year for annual check. Very reliable with fewer moving parts. Lifespan 20+ years vs 10-15 for boilers.
10-Year Total Cost Comparison
Gas Boiler
Heat Pump (with grant)
The Verdict
Over 10 years, gas boilers are still slightly cheaper (£16,750 vs £19,250), but heat pumps are catching up fast. Factor in:
- Rising gas prices: Gas has risen 50% in recent years and may continue climbing
- Falling electricity prices: As renewables increase, electricity costs should decrease
- Property value: Heat pumps add £10,000-20,000 to home value on average
- Future-proofing: Gas boilers banned in new builds from 2025; phaseout coming
Bottom line: If you can get the £7,500 grant, a heat pump is worth considering—especially if you have good insulation and plan to stay in your home long-term. Without the grant, it's harder to justify on cost alone (though environmental benefits remain).