Heat Pump Savings Calculator

Compare your annual running cost on gas vs an air source heat pump — on the standard Ofgem cap, Octopus Cosy, and Octopus Go tariffs. With 15-year cumulative savings.

JT Reviewed by James Thornton, MCS Engineer Oct 2025 Ofgem cap
Year-by-year savings vs your gas boiler
Standard cap, Octopus Cosy, or Octopus Go — see which tariff actually beats gas, by how much, over 15 years.
Quick answer: A well-installed UK air source heat pump (SCOP 3.0+) typically saves £150–£450 per year vs a modern gas boiler on Octopus Cosy or Go tariffs. On the standard Ofgem cap, savings shrink to £0–£150 per year. Over 15 years on Cosy, a typical 3-bed semi saves £3,500–£8,000 — on top of the £7,500 BUS grant.

Your home

95 m²
Cosy and Go offer cheap off-peak hours specifically for heat pumps & EVs.
p/kWh
Default = Oct 2025 cap. Will rise to 7.40p in Q4 2025 cap forecast.
Annual savings vs gas
£280
per year
Gas boiler/yr
£985
Heat pump/yr
£705
15-yr saving
£4,200

Assumes constant prices & SCOP. Real prices may rise — but gas typically rises faster than electricity (per OBR forecasts).

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How heat pump savings actually work

The headline question is simple: does it cost less to run an air source heat pump than a gas boiler?

The answer is "almost always yes, but the size of the saving depends on three things":

  1. Your heat pump's SCOP — Seasonal Coefficient of Performance. SCOP 3.0 means every 1 kWh of electricity becomes 3 kWh of heat. SCOP 4.0 means 4 kWh. Well-installed units hit 3.0–3.5; poor installs drop to 2.4.
  2. Your electricity tariff — Octopus Cosy and Go are 25–35% cheaper than the standard Ofgem cap during heat-pump-favourable hours.
  3. The gas/electricity price ratio — currently 3.77× (26.35p ÷ 6.99p). Heat pumps win whenever their SCOP exceeds that ratio. SCOP 3.8+ on the standard cap means cheaper than gas. SCOP 2.8+ on Cosy means cheaper than gas.

Why Octopus Cosy changes the maths

Octopus Cosy is a time-of-use tariff designed specifically for heat pump households. It offers three rate tiers:

Set your heat pump controls to load up the buffer tank and hot water cylinder during cheap hours, and you'll average around 19p/kWh annually. That's the killer ratio: 19p ÷ 6.99p = 2.72× — easily beaten by a SCOP-3.0 heat pump.

15-year savings, not just year-one

The default view is year-1 saving. The bigger story is what those savings compound to over the heat pump's 15-year design life:

Scenario Year-1 saving 15-year saving
SCOP 3.0 ASHP on standard cap~£75~£1,100
SCOP 3.0 ASHP on Octopus Cosy~£280~£4,200
SCOP 4.2 GSHP on Octopus Cosy~£450~£6,750
SCOP 2.6 ASHP (cold/poor install) on cap−£100−£1,500

The bottom row is the warning: a poorly-installed pump in a cold area on the standard tariff costs more than gas. This is why installer skill matters more than brand, and why a smart tariff matters more than the pump model.

What about gas price inflation?

The Office for Budget Responsibility projects UK gas prices to rise 4-6% per year over the next decade, while wholesale electricity is forecast to fall 2-3% per year as renewables share grows. Both effects widen heat pump savings over time — the year-15 saving is typically 60-80% larger than year-1 once price drift is factored in.

This calculator uses constant prices for simplicity. If you want a stress test, run the gas price at 9p (a +30% scenario) and your heat pump savings double.

Frequently asked questions

How much money does a heat pump save vs gas?
A typical UK 3-bed home saves £150–£450 per year on Octopus Cosy or Go tariffs vs a modern gas boiler. On the standard Ofgem cap, savings are smaller (£0–£150 per year) but still positive for well-installed pumps with SCOP 3.0+. A poorly-installed pump on the cap can lose money — installer skill and tariff choice are decisive.
Will a heat pump save me money on Octopus Cosy?
Yes — typically 20–35% less per year than gas. Cosy's blended average is around 19 p/kWh vs the standard 26 p/kWh, which makes heat pumps decisively cheaper to run. Even modest SCOP 2.8 systems beat gas at this electricity price.
What is SCOP and why does it matter?
SCOP (Seasonal Coefficient of Performance) is the real-world efficiency of a heat pump averaged across a UK heating season. SCOP 3.0 means 3 kWh of heat per 1 kWh of electricity. The break-even SCOP vs gas depends on prices: at Oct 2025 cap (26p elec, 7p gas), you need SCOP >3.7 to beat gas on the cap. On Octopus Cosy, you only need SCOP >2.7.
Can a heat pump cost more than gas to run?
Yes — and this is the dirty secret. A poorly-installed heat pump (SCOP 2.4 because radiators are too small and flow temp is too high) on the standard Ofgem cap will cost 10–20% more per year than a modern gas boiler. Avoid this with: proper sizing, low-temperature design, larger radiators, and a smart tariff like Cosy or Go.
How long does it take to pay back a heat pump?
With the £7,500 BUS grant and Octopus Cosy savings, a typical 3-bed semi pays back the net £6,000 install cost in 18–24 years on running costs alone. The real payback story is: the BUS grant is itself "instant payback" of £7,500, so even year-1 you're £5,500–£7,000 better off vs a gas boiler replacement.

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JT

James Thornton

MCS-Certified Heat Pump Engineer — Reviewed this page

James has installed over 380 air source and ground source heat pumps across the South of England since 2011. MCS-certified, CIPHE member, with hands-on data on SCOP performance from real UK installs.