Heat pumps: smarter, electric and built for better running costs
Heat pumps are a smarter way to heat your home.
Instead of burning gas, they run on electricity. And instead of creating heat, they move it - which is why they can deliver far more heat for every unit of energy they use. Pair that with a smart tariff, like Cosy Octopus, and you can bring your running costs down too.
Why heat pumps work differently
A typical gas boiler turns about 85% of the energy it uses into heat. Heat pumps flip that on its head. They use electricity to move heat, which means they can deliver multiple units of heat for every unit of electricity used.
How efficiently a heat pump turns electricity into heat is measured in COP (which means ‘Coefficient of Performance’) and is the ratio of heat created over energy input.
So a COP of 3.5 means a heat pump created 3.5 kW of heat for every 1 kW of energy it used. COP is a snapshot of performance at a given time and given weather conditions.
Our fleet of Cosy heat pumps is delivering an average COP of 3.87 (kWh out to kWh in) over the last 90 days.
See our live Cosy heat pump data
If you want to dig deeper, you can explore how heat pumps are performing right now across real homes. Our Cosy Heat Pump Fleet Performance Dashboard shows live results from across the UK - including how many homes are beating gas on running costs.
What our customers have saved
We looked at real data from homes already running their Cosy heat pumps on our Cosy Octopus tariff:
- 80% paid less to heat their home than they would have with gas
- Customers saved £219 a year on average compared to heating the same home with a gas boiler on a standard tariff
This is based on the actual energy use of all Cosy Octopus heat pump customers between 19 March 2025 and 18 March 2026, using Cosy tariff rates at the time of use.
We compared that to the cost of producing the same heat using a typical gas boiler running at 85% efficiency on our Flexible Octopus tariff at the same time. We also included gas standing charge savings but only for homes that had fully removed their gas supply.
Planning to get a heat pump?
Your running costs, and any savings you could make, depend on things like: your system design, how well insulated your home is, how you heat your home and the energy tariff you’re on.
The Cosy Octopus smart tariff
Heat pumps are electric. That means when you use energy matters just as much as how much you use.
That’s where Cosy Octopus comes in.
It works by allowing you to make the most of cheaper, greener periods of electricity each day. This might mean pre-heating your hot water or your home a little earlier than usual, and then once the daily peak in energy demand has passed, turning your heating back on to remain as cosy as ever.
To make the most of the tariff, all you'll need to do is set a schedule around the Cosy dip periods and you'll be good to go. Here are our top tips for how to run your heat pump to maximise savings.
How to join Cosy Octopus
If you have a heat pump, or you're planning to have one installed, switching to Cosy Octopus is easy. Just follow the steps on this page.
Or, if you have other smart tech devices at home, like an EV, solar panels or a battery, a different smart tariff could be a better fit. Check out this quiz to find the right tariff for you.
How to help reduce heating costs
Run your heat pump smartly
Let it heat your home steadily, not in short bursts like a boiler.
Use the Cosy Octopus smart tariff
Shift heating into cheaper periods where you can.
Go fully electric
Remove your gas supply and you could save around £128/year in standing charges alone. We’re one of the only suppliers to offer this service for free.
Get the right setup
A well-designed system in a well-insulated home will always perform better. Our team is on hand to design the right system for your home.
Could you pay less to heat your home?
Try our calculator tool to estimate how your running costs could change with a heat pump. It uses a model based on things like your energy use, heat pump flow temperature, energy tariff and whether you keep or remove your gas supply.
Every home is different. This is an estimate, not a guarantee - and some homes may pay more, while others pay less.
Ready for your personalised quote?
Whether you’re just curious or have done your homework, getting a quote is a simple, stress-free next step.
Learn about our smart tariffs and how they can help you save while staying cosy.
Discover grants, cashback, and payment plans that make heat pumps more accessible.
See what our customers think and how heat pumps are changing homes for the better.
Published on 30th September 2023 by:
Hey I'm Constantine, welcome to Octopus Energy!
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