Heat pumps explained: costs, benefits and how they work

Your neighbour’s got one. Your brother-in-law's getting one. So what is a “heat pump” and how could it benefit you? If you’re new to the world of smarter, greener home heating – this guide is here to help.
Up to 4x more efficient than a standard gas boiler
What is a heat pump?
Heat pumps are a cost-effective, eco-friendly way to heat your home using electricity instead of a gas (bye-bye old boiler). Without going into loads of detail: heat pumps take heat from the outside and move it inside to warm your pipes.
They work a bit like an air conditioner in reverse – keeping your home warm instead of cool – and they’re super efficient. While boilers give you quick bursts of high heat, heat pumps provide a steady flow of warmth to keep your home toasty all year round. That's why they’re popular in countries with cooler climates like Norway and Sweden.
Want to know more? Watch the video below.
How could a heat pump benefit you?
- They're efficient. Heat pumps use up to 4x less energy than even the most efficient boilers to generate the same kind of heat.
- They cut carbon. Switching to a heat pump could reduce your carbon footprint by around 80%. Plus, they run on electricity, which is renewable with Octopus Energy.
- They provide steady heat. Heat pumps are designed to provide a steady flow of warmth to keep your home toasty all day – so you're never left feeling the chill.
- They’re cheap to run. On our Cosy Octopus tariff, customers can save up £213 a year compared to gas, with a standard low-temperature installation.
- They last longer. The average lifespan of a heat pump is 20 years which is 5 years longer than a gas boiler. So you won’t have to worry about replacing it anytime soon.
- They can boost the value of your value. Investing in a combination of green tech could increase the value of your home by up to 3%.

How much do heat pumps cost?
Thanks to some savvy government grants and cashback incentives from banks and mortgage lenders, the upfront costs of getting a heat pump are less than you’d think.
The UK government's heat pump grant scheme puts £7500 towards the cost of replacing a gas boiler with a heat pump, and many of the biggest banks and mortgage lenders are offering up to £2000 cashback to eligible customers.
Our heat pumps start at £4,300 for a standard install (including the government grant) and if you’re eligible for cashback from your bank or mortgage lender, the cost of your install could be even less.
What heat pumps do Octopus install?
It's no surprise we're big fans of heat pumps. So much so that we decided to build our own: The Cosy.
Cosy is a true powerhouse in the heat pump world. It’s efficient, quiet and comes with four Cosy Pods to monitor the temperature and humidity of your home. Plus, it works seamlessly with the Octopus app for straightforward, no-fuss heating.
Cosy is the main heat pump we install and always our first choice for customers. If you’re not eligible for a Cosy following your free survey, we’ll offer you a Daikin heat pump instead – which, like Cosy, is one of the best on the market.
Why install your heat pump with Octopus?
So, you’ve decided to get a heat pump, excellent choice! Here’s what makes us a smart pick:

We’re a one-stop-shop for heat pumps, so there’s no need to look elsewhere or co-ordinate with third party contractors. We carry out a thorough in-home survey, design and build your heat pump so it meets the needs of your home, upgrade your radiators and pipe work if we need to, and provide all the aftercare too.

Keep your home warm for less with Cosy Octopus – our tariff designed especially for heat pumps – with three dips of cheap, green energy every day. Plus, if new features come out for your Cosy heat pump, you’ll get them automatically. Remote monitoring lets us update your Cosy’s software and see how it’s performing from afar.

All our Cosy heat pumps comes with an 8 year warranty for ultimate peace of mind – longer than the average 5-year warranty offered by most installers. And you’ll benefit from our award-winning customer service too. We’ve been the Which? recommended energy supplier for 8 years running with over 500k 5-star Trustpilot reviews.

Customers review their Cosy
Switching to a heat pump is a big decision – but as these customers will tell you, it pays off in the long run. Hear directly from people like you who took the plunge and are now enjoying the benefits of cleaner, greener home heating.
Get a heat pump with Octopus
Ready to be the envy of the whole street? Head to our order page and pop in your postcode for a quick, free heat pump quote.



Published on 31st March 2025 by:
Hey I'm Constantine, welcome to Octopus Energy!
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