What it ACTUALLY costs to run a Heat Pump (vs Gas Boiler)

It’s now actually cheaper to run a heat pump in your home than a gas boiler! Yes, you read that right.
Interested in a heat pump? octopus.energy/get-a-heat-pump/
One of our heat pump pros, Ben goes over how you could save hundreds of pounds on your energy bill with a heat pump and a smart tariff compared to a gas boiler. And all calcs are based on the April 2024 price cap.
How much can YOU save with a heat pump? octopus.energy/blog/heat-pump...
Need a smart heat pump tariff? octopus.energy/smart/cosy-oct...
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00:00 Intro
00:52 Property size
01:02 People in your property
01:09 Home insulation
01:20 Efficiency of heating system
01:39 Your energy tariff
01:52 Heat pump energy tariff
02:04 Cosy Octopus
02:36 The maths
03:38 Other costs & savings
04:21 Summary

[@keithbrown339]

Had a quote from Octopus £15000. I know I can I get 7500 from government.. but the figures simply don’t add up. It’s a small house in the last year I spent £600 in gas if the electricity was free it would take 12.5 years to pay off. Something wrong with your quote system. I want to be green but I can’t afford it .

[@andrewwebb5871]

Same for me not worth it till the prices come way down

[@andrewnicholson9857]

Have you tried getting a quote from another supplier? This would either show how much the Octopus quote was out or validate it as correct.

[@JohnR31415]

If you spend 600 on gas you can’t be needing more than a 4kW unit. I bet your survey way over estimated the unit needed. But the time to switch is when you are looking at replacing the boiler anyway.

[@constructioneerful]

What can you tell us about your house?

[@keithbrown339]

@@constructioneerfulIt’s a small 4 bedroom link detached house built in the 1960s ish . There loads of outdoor space and room in the utility from a large hot water tank. Insulation in loft is very good . Double glazed. New fuse board this year with loads of spare ways. 15mm pipe to all radiators . I think they do themselves a disservice but just giving a price online randomly.

[@andrewwebb5871]

Quoted £15k before gov grant for my house, seriously just thinking of replacing my oversized boiler with a smaller more intelligent gas unit.

[@johnfreshwater3790]

I would get other quotes I am assuming they want you to upgrade some of your rads. Always good idea to do your own heat loss also. Heatpunk is good but does take a bit of time to work out how to use it. I know people who have had them retro fitted for less than 10k so with the Grant only 2.5k

[@David-bl1bt]

​@johnfreshwater3790 i got a quote from British gas of £658.34 for a Daikin unit, & £3169.43 for a vaillant.

[@sirjohng1]

You may start saving once you have covered the £6,000-£10,000 to instal all that is necessary to make any savings. That involves an awful lot of disruption and a large cupboard area to hold all the complicated plumbing and control equipment plus the bigger radiators in most rooms and extra insulation to achieve the savings. And, do ask how you get fresh air into your rooms without upsetting the carefully calculated settings on your heat pump with all the windows and doors shut!

[@ajward137]

Ventiltion is, and has been for decades, a building regs. requirement. Unfortunately the standard solution, Trickle Venting (put a small, closeable slot at the bottom of each window) barely works at all (and the required 0.5 air changes/hour is highly unlikely). I don't know how house builders get away with it. So getting fresh air into your property is almost certainly a problem with your current setup. It isn't specific to heat pumps.

[@chrismawby1805]

Octopus did a survey on my four bedroom house and told me that a heat pump was not suitable because the house is not energy efficient because it’s solid brick even though we have loft insulation and double glazing. We have no other choice but to use gas heating.

[@OctopusEnergy]

Hey Chris, heat pumps are suitable for most homes - but we will be honest when you're not quite ready. If you'd like a chat through this in a bit more detail, please do drop your info here: octo.ps/nudge & we'll get in touch.

[@davidhaley6414]

Its not a saving you have to pay for the heat pump and still pay your energy cost

[@PhillipBell001]

I have been quited over £4,000 for a heat pump and boiler by Octopus. My house had underfloor heating fitted last year but at the time i could not afford a heat pump. All that needs doing is boiler and cylinder removed and replaced. I was shocked at price.

[@David-bl1bt]

Have you tried British Gas? I was quoted £658.34 for a daikin, £3169.34 for a vaillant.

[@murilocostalessalima]

There are plenty of images on Octopus Cosy 6 at the start of the video, but when will it be released? This was announced last September, but no date for when the general public would be able to install it was given. I had a survey on my house, it is all good to go, apart from the Octopus Cosy 6 not be made available.

[@David-bl1bt]

Same here. Ive had a £500 deposited with octopus since October last year, had a survey done 3 months ago....still jo sign of the cosy6. There is conflicting reports of when it will be available. I have been told "imminently" , "in a couple of months", to "at the end of the year". Nobody at octopus seems to knowxwhats going-on, it seems all hush-hush, its ss though it is a big secret project! I visited tge octopus stand at the everything electric exhibition in Harrogate last weekend and managed to see it....thankfully, it wasnt in the purple colour, it was a mottled grey colour, looking like a large pebble! It is certainly refreshingly very different than the usual white box, looks very cool, so im chomping at the bit in anticipation if the oroper launch to the public. Ive been contacted today by octopus telling me that a new heat pump install coordinator has been assigned and they will be in touch shortly. Hopefully this is a sign that thongs are moving and installs will be scheduled very soon.

[@QuattroUK2011]

It has just been MCS approved so hopfully soon!

[@murilocostalessalima]

@@QuattroUK2011 great news!

[@David-bl1bt]

@QuattroUK2011 excellent!

[@gavintillman1884]

appealing if we can find solution for flats - not sure I'd be allowed to attach an HP at back of mine

[@OctopusEnergy]

Hey Gavin, heat pumps don't work so well for flats right now (you need a bit of outside space to put the heat pump in), but do keep an eye on our blog for our latest developments... octopus.energy/heat-pump-hub/ In the meantime, there are many other green heating solutions that don't require outside space. Find out more on our Works with Octopus page 👉 octopus.energy/works-with-octopus/

[@stevenjonesnmcc]

Is this feasible for use on the Octopus Go tariff between the hours of 12.30am and 4.30am. Also do you fit the My Energi Eddi with your installs to combine solar with the heat pump and hot water cylinder?

[@OctopusEnergy]

Hi Steven, you can double check what tariff best suits your set-up here: octopus.energy/octopus-smart-tariffs/. We should be able to include an Eddi diverter during the install, there's a bit more info on our webpage: octopus.energy/heat-pump-FAQ/.

[@stuartgoble]

We've looked at heat pumps in detail for a while now, but the cost of retrofitting all of the central heating pipework means it never costs in. We have 10mm microbore, so heat pumps just don't seem to be able to be retrofitted to that system. The only alternative to gas we've found so far is the electric heat store device, but that is also very bulky.

[@andrewnicholson9857]

Octopus have changed the installation requirements so can fit a heat where 10 mm microbore is present.

[@peterbruch8719]

We have 10mm plastic microbore and Octopus had no problems. We're waiting till the Cozy 6 is available later this year, which should also mean that we won't have to change many radiators, if any. All for £500!

[@David-bl1bt]

​​@peterbruch8719 h[w have you got a quote if £500 for the cosy6? Octopus quoted me for the Daikin but i declined as i wanted an up to date, modern unit, not a century old legacy unit from China. They couldn't give me a price for the cosy6 until launched.

[@peterbruch8719]

Hi, it's the Daikin at the moment, the Cosy 6 hasn't been released yet. We're expecting the quote to stay the same as there will be a lot less installation work to do. If the quote goes up dramatically, we'll settle for the Daikin.

[@grahambrown42]

When you say electric is more expensive than gas, you dont say it is more than 4X the price! The low price electricity is when most people are asleep under their duvet! We need about 15kw of battery storage, as well as the heat pump for this to make sense. Heat Pump + 15kw Battery £20k+

[@mrb2843]

1 kwh of energy at 26.9p for 4kw of heat vs 6.5p per kwh of gas so 4/0.9 x 6.5 = ~29p. The install cost is not worth it. Perhaps if gas jumps to 30p per kwh. I'll be a qualified installer in the near future, might do it then.

[@chrisp7839]

But you don't pay 26.9p per kWh - you go for a Heat pump tariff, where the price of electricity is lower twice a day, and then you also use that time to do other energy intensive things - washing machine, dishwasher, cooking. Not only saves you money on heating, but actually reduces what you pay for your normal electric use too.

[@suzann2531]

Apparently UK gas bills could rise £1,000 to fund wind power. Also a plan to shift green levies from household electric to gas bills. Why should the consumer have to pay extra to fund wind power and face high bills on top. Apparently there’s a plan to shift green levies from household electric to gas bills. Can someone explain because it feels like we are being treated like mugs by paying twice for all this while governments and energy companies are filling their pockets.

[@chrisp7839]

If that is true, then that would be a very good reason to get off gas as soon as possible. Make use of the £7500 grant while it's there. It's always better to go for the carrot than to be hit by the stick.

[@MrIRBee]

Can you combine the Cosy Octopus & Intelligent Octopus Go tariffs, or would IOG achieve the daytime savings as well?

[@OctopusEnergy]

Hi there, you'd only be able to have one electricity import tariff, unless you have two separate meter points at the property. So it'd have to be Cosy or IO Go. Cosy is designed specifically for heat pump users and has 6 hours of off-peak overall, it’s just spread out across two windows a day instead of one like our EV tariffs (IO Go's is 11:30pm and 05:30am every night). Lots more info here too to find out which tariff might work best for you: octopus.energy/octopus-smart-tariffs/ 🐙⚡

[@MrIRBee]

@@OctopusEnergy So, if you have an EV and a heat pump, you can't have all the savings or minimise your impact on maximum/peak grid demand?

[@JohnR31415]

You can - but you can’t get all the way down to 7.5p on cosy - if the overnight was down to 7.5 it would be much more attractive

[@chrisp7839]

@@MrIRBee Only works really if you have a home battery that you can charge up alongside your EV, and then run the heat pump off that during peak energy times. If you have solar, during the summer that can help to offset the running of the heat pump too.

[@Fagan6342]

Unfortunately you don't offer eco4 or gbis work where i live so no point in installing a heatpump as my house can't be insulated to the requirements needed. This coming from someone who wants one.

[@martinbrighton2116]

When will there be a heat pump for flats? I want one, but I have no room for a hot water tank. 😢

[@OctopusEnergy]

Sorry we can't offer a solution for flats right now, but we're working on it and will be in touch when we have something available. In the meantime, there are many other green heating solutions, which don't require outside space, like Tepeo's Zerom Emission Boiler or Nexgen's electric wallpaper. Find out more on our Works with Octopus page 👉 octopus.energy/works-with-octopus/ 🐙

[@spiralx6249]

But the initial cost, and the sheer hassle of replacing your central heating and radiators - as well as spending on maximising insulation all over - makes it really challengihg. And - shouldn't the extraordinary price difference between gas and electricity (1:4) be the other way around?

[@OctopusEnergy]

We're working on bringing the costs down even further, we're now installing heat pumps from £500 with the govt grant which is way cheaper than most boilers. Every home is different, some may need upgrades but some may not - we'd be more than happy to check yours out if you'd like the full picture?

[@andrewwebb5871]

15k quoted for my home before the grant. Can’t afford that.

[@JohnR31415]

Maximising insulation should be happening anyway, neither that nor replacing rads are necessary in all houses.

[@spiralx6249]

@@JohnR31415 - it should, yes. But my quotes for cavity wall insulation were around £1000. For just a small 2-bed end terrace. No government grants unless you're practically a pauper. Plus, easily £300 plus for loft insulation. And THEN you start to cost up heat pump installation. It's just not that financially doable.

[@JustinUK]

Cosy tariff suggest heat pump comes on only during the dips in price, but thought the heat pump should run constantly 24/7 using small amount of electric which is COP up x3.5 but still electric being used at the peak times for home heating, unless you utilise the battery during the non dip times making cosy only really relevant for people with battery storage? Or have I missed something?

[@OctopusEnergy]

Hi Justin, you're absolutely right that the most efficient way to run the heat pump is to have it on all the time. However, just because it's on doesn't mean it's constantly running. If you take advantage of the dip in electricity pricing between 1-4pm with the cosy tariff, with the use of thermal coasting, it will be able to maintain the temperature for the rest of the evening using very little electricity. 🐙

[@JustinUK]

@@OctopusEnergy thermal coasting, so how do I set that?

[@OctopusEnergy]

Sorry for the confusion - thermal coasting is not a mode, it's a phenomenon where rooms can be slightly overheated, and slowly dies down over the course of the evening. You can schedule this on the Onecta app (for Daikin heat pumps) based on your own preferences. 🐙

[@thetroopersk]

here in uk....is underestimated to insulate your house,...properly...not with poor pellets from polystyrene...but...proper...foam insulation in cavity, plus outside insulation, triple glased windows...

[@spiralx6249]

Yes. I spent £1000 last year on my walls. And an extra layer in the loft. Disappointingly, hasn't made a really significant difference to my house holding its heat.

[@thetroopersk]

@@spiralx6249 windows ?? what kind of insulation used ?

[@spiralx6249]

@@thetroopersk - double-glazed. When I asked about triple, I was told it mostly cuts down on noise, and does less for extra insulation.

[@71brp84]

Why would anybody want a Cosy6 when it's less efficient than the Daikin units you're currently installing?

[@David-bl1bt]

What is your source of information? I cannot find any tech specs for the cosy6 anywhere.

[@71brp84]

​​@@David-bl1bt MCS product database I did post a link, but Octopus or YT decided they didn't like that.

[@David-bl1bt]

I've just looked on that database, the cosy6 isn't listed🤔

[@dave0smeg]

I'll stick to gas thanks. Can't afford to rip out the gas system and replace it with a more expensive system that doesn't get as hot. Had enough of that when our last landlord replaced a 50 year old boiler that cost almost nothing to run with a "super efficient" condensing boiler that used 3 times as much gas and never heated the house enough.

[@danjones2567]

This is all well and good, but this is just, here-say. Given that octopus can increase, decrease or even remove tariffs that no longer work for them or their benefactors you can leave people paying ££££.££ a year. In my circumstance, my combined standing charge is more than 25% of my annual bill from Octopus. In your last quote you told me it would cost around £2000+ a year to run the heat pump and my normal usage. Given there are only two people in my house, including me. There is absolutely no savings at all and I would make no come back on the purchase. This is only good for new builds which are well insulated not for the older housing stock in the UK, it’s not fit for purpose. All it will do is make rich individuals richer.

[@chrisp7839]

That of course, is also true of any energy supply. As we have seen during the energy crisis. If the government had not stepped in with the price cap, we would have had a very expensive couple of winters on Gas. If this happens again, a future government may not be able to afford to intervene again, and if you are on gas, its a problem.

[@m1ddleagemadness]

cannot get them in Norwich :(

[@OctopusEnergy]

Hey there, we’re currently installing heat pumps across England & Wales. We’re working to extend our tentacles across the rest of the UK as quickly as possible. Do fill in our form here & we’ll be in touch as soon as we’re in your area 👉 t.co/CK0rNWNHVi 🐙

[@zakthetech]

If you would design systems for a low temperature (like 40°c) instead of 50°c you would be around 10-15% more efficient (good for the planet) and save customers even more money.

[@davidnewman5349]

What tosh! Octopus, 8 arms to take more money off you.

[@thetroopersk]

heat pump,...underfloor heating....insulated house... solar paneles and batteries... job done...

[@spiralx6249]

And baked beans, with the odd potato, for the rest of your life.

[@thetroopersk]

@@spiralx6249 you must be bored mate...try to find hobby

[@kanatsizkanatli]

the order is wrong here obviously insulation and energy efficient light and appliances first, then underfloor heating then solar panel and finally heat pump

[@thetroopersk]

@@kanatsizkanatli ididnt look into order...as i have all of that...and aircon as well

[@whiskysam2036]

You can keep them I love my coal fire too much 🏴󠁧󠁢󠁳󠁣󠁴󠁿🇬🇧

[@andrewmartin8816]

totally useless and expensive when your smart meter stops working 8 months after install and Octopus cant fix it

[@OctopusEnergy]

Hey Andrew, let me check on this for you - unfortunately, there are some instances where a smart meter can have intermittent connectivity (e.g. if there's no WAN coverage in your area, if you live in a property where the meters are more than 10 metres apart, etc.). Please send us some account details 👉 octo.ps/nudge 👈 and I'll take a closer look to help. 🐙⚡

[@grantmidd]

As an Octopus customer I really like them as a company, However as helpful as this video is it is also disingenuous as it did not compare The actual cost or price comparison of gas. When you do this comparison between a normal standard 3 bedroom home which is described in his video as a medium home. You only end up saving £200-£300 a year. This does not work out financially when you look at the install cost and the payback period for the heat pump. If you want to help the planet by reducing your carbon emissions get solar panels Instead. Having 5KW of solar panels covers my gas bill at the end of the year by half due to the high export rates in the summer. My Solar System will be paid off in 5 to 6 years.

[@David-bl1bt]

Have you mot factored-in that the heatpump will be run off the solar generation? Even moreso if you have a battery too!

[@grantmidd]

@@David-bl1bt Hey David that a good question and yes I have. Heat pumps are only cheaper if you have a cheap tariff. Like 8p for non peak periods etcetera. But with a tariff like that the export is lower. With my tariff Octopus intelligent flux. I get 22p in 22p out for most of the day and at peak times its 29p in and out. My solar generation is worth more to me sending it to the grid. 22p for export an 7p for gas 7x3=21p that like having a COP of 3. You'll be lucky to get a COP of 3 in winter. Heat pumps make a lot of sense for people not connected to mains gas as it is the cheapest and most energy efficient for off gas grid set ups.

[@grantmidd]

@@David-bl1bt Do you have a Solar System set up and a heap pump? If so please show specs below. And then tell me how much extra you pay per year to the energy supplier for the whole thing.

[@David-bl1bt]

​@grantmidd i have just had solar and battery installed. Its on a south facing roof, so im getting a lot of generation on sunny, and not so sunny days. The battery charges to full within an hour and a half, day house base load is less than a kW so, annoyingly a lot is exported to the grid (unpaid for) at the moment as until i switch to octopus. I have an EV so that is charged for free currently. A heatpump is in the pipeline, I'm just waiting for the cosy6 to be launched. Ive had several quotes, cheapest is British gas at around £670 odd fully installed, which is a no brainer tbh. I would prefer the cosy6 if the cost comes in competitive.

[@grantmidd]

@@David-bl1bt That's Grat that you have Solar and battery installed what battery is it? If it's a Givenergy battery you can get the tariff I am on. £670 for an installation of a heap pump is ridiculously cheap and I imagine comes with hidden costs such as replacing of radiators and pipe work. Also my problem with the heat pump is the cost of energy in the winter time when you need it. If you currently now have a congas boiler you are not paying for that gas buoyant to keep warm most at the time however you will be paying for your What a tank to be warm if you get one with the heat pump that is less efficient. A heat pump will always cost more than a gas boiler at keeping hot water on standby in a tank. Obviously getting a heat pump is completely up to you but I would highly suggest more research is done. If you want to use less gas and still be carbon neutral even though carbon isn't the problem as we know. You could always install a log burner. Ask me about 200 pounds a year to run and it lowered our gas bill by half. Also winter is much more cosy with the lockburner.

[@marcobrian1619]

Ok I tapped on this vid to see...... straight away the "octopus sign came up" Then you went onto savings the planet....... Straight away I saw red flags. And when we all go electric and smart meters..... Hep thay have us by the balls...... Just like electric cars........hmmm

[@OctopusEnergy]

Hi there, with smart meters, we receive half-hourly consumption data & this helps us buy energy more efficiently and offer smart tariffs like Cosy that's designed specifically for heat pumps. Smart meters are also cheaper to administer, which allows us to offer things like Octoplus to smart meter customers. We’re genuinely doing everything we can to help change the whole system which will ultimately make energy cheaper for all too. Lots more info here: octopus.energy/green/ 🐙⚡