Heat pumps installed in UK homes are cutting energy bills by more than £200 a year when they are properly designed and set up, according to a major new study.
Researchers analysing real-world data from hundreds of households found the systems are performing far better than earlier trials suggested, delivering lower costs, higher comfort, and reduced carbon emissions.
The findings challenge lingering doubts about whether heat pumps can work efficiently in Britain’s existing housing stock.
What the study found
The research, led by the University of Oxford and published in Energy and Buildings, analysed real-world data from hundreds of UK households using ground and air-source heat pumps.
The data was voluntarily shared by homeowners through the online platform HeatpumpMonitor.org, covering a wide range of housing types, ages, and heat pump models.
Unlike earlier government-backed trials that reported relatively poor performance, these real-life systems achieved efficiency levels nearly 40% higher.
As a result, households with well-optimised heat pumps were found to be saving, on average, around £224 per year compared with heating the same homes using gas boilers. The study also showed improved comfort and a much smaller carbon footprint.
How heat pumps achieved these savings
The key factor behind the improved performance was quality installation and setup. Researchers found that the most efficient systems were properly sized for the home, rather than oversized, and ran continuously at lower temperatures instead of switching on and off in short bursts.
Efficient systems typically operated with radiator temperatures of 35°C to 40°C, far lower than the 50°C to 60°C used by gas boilers.
Lower temperatures allow heat pumps to extract and deliver heat more smoothly, using much less electricity per unit of heat produced. Correct calibration of controls ensured homes stayed warm while avoiding unnecessary energy use.
How the £200 saving was calculated
The annual saving figure was calculated by comparing the actual electricity costs of running a well-performing heat pump with the estimated gas costs of heating the same home using a modern gas boiler.
Researchers used real energy consumption data from households and applied current UK gas and electricity prices to both scenarios.
Because the studied heat pumps delivered much more heat per unit of electricity than expected, their running costs were lower than those of gas boilers despite higher electricity prices.
On average, this resulted in a saving of £224 per household per year, assuming similar comfort levels. The study emphasises that these savings depend on good installation, proper system design and user guidance.
