Heat pump vs oil boiler: what it really costs
For a typical 3-bedroom semi (about 12,000 kWh/yr), an air source heat pump (SCOP 3.5) costs about £895/yr to run versus about £933/yr for heating oil. That is about £38 saved a year. Use the calculator to put in your own home and tariff.
Running cost compared, by home size
Typical yearly running cost of an air source heat pump (SCOP 3.5) against heating oil, at the national Ofgem price cap, for five common UK homes. Every figure comes from the same model as the calculator below.
| Home | Heat kWh/yr | Oil boiler £/yr | Heat pump £/yr (cap) | Heat pump £/yr (HP tariff) | Saving/yr |
|---|---|---|---|---|---|
| 1 bed flat | 4,500 | £350 | £336 | £193 | £14 |
| 2 bed terraced house | 8,000 | £622 | £597 | £343 | £25 |
| 3 bed semi-detached house | 12,000 | £933 | £895 | £514 | £38 |
| 4 bed detached house | 19,250 | £1,497 | £1,436 | £825 | £61 |
| 5+ bed detached house | 24,000 | £1,867 | £1,790 | £1,029 | £76 |
At the national price cap a heat pump undercuts heating oil on running cost once its SCOP is above about 3.4, and a typical air source heat pump runs at SCOP 3.5. Heat pump cost = yearly heat ÷ SCOP × the electricity unit price; heating oilcost = heat ÷ 0.9 boiler efficiency × the fuel price. Prices are the Ofgem cap (2026-Q3); full model in the methodology.
Your standard rate. The tariff scenario is shown separately.
Efficiency. 3.5 is typical.
On a standard tariff (price cap)
electricity at 26.11p/kWh
£38 /yr saved
Heat pump £895/yr · payback 98.3 yrs
On a heat pump tariff (~15p/kWh)
cheap-rate electricity
£419 /yr saved
Heat pump £514/yr · payback 8.9 yrs
Heat pump tariffs (Octopus Cosy, EDF, Scottish Power) offered off-peak rates of about 14p to 15p/kWh in June 2026. The ~15p scenario assumes most heating runs in the cheap hours.
- Now: heating oil heating
- £933/yr
- Indicative system size
- ~6kW
- Install after grant
- £3,750
- CO₂ saved
- 2,584 kg/yr
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Estimate only. Real figures depend on your home, install and tariff. Prices: Ofgem cap, Jul-Sep 2026.