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.
Around 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 videos below.
But how do they actually work?
How could a heat pump benefit you?
They're efficient. Heat pumps use around 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 82%. 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. Cosy heat pump customers on the Cosy Octopus tariff saved an average of £200 last year compared to using a gas boiler running at 85% efficiency on our standard variable tariff.
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 home. A heat pump can add thousands to your property value.
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 up to £9,000 towards the cost of replacing a gas boiler with a heat pump, many of the biggest banks and mortgage lenders are offering up to £2000 cashback to eligible customers.
Our typical heat pump price is £4,459, which is lower than the national average of £5,600. And if you’re eligible for cashback from your bank or mortgage lender, the cost of your install could be even less.
Which 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 your home is not suitable 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 do it all, from design to install
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.
Smart savings, regular updates
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.
8 year warranty, support 7 days a week
All our Cosy heat pumps come 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.
Get the low down on heat pump costs
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Need help? Visit the Heat Pump Hub
Cosy heat pump customers on the Cosy Octopus tariff saved an average of £200 last year compared to using a gas boiler running at 85% efficiency on our standard variable tariff
This figure is based on the actual energy consumption of all Cosy heat pump customers on a Cosy Octopus tariff between 1 July 2025 and 1 July 2026, using tariff rates at the time.
We compared this to the cost of producing the same amount of heat with a gas boiler operating at 85% efficiency, priced using our Flexible Octopus (standard variable) tariff at the same time.
Savings from gas standing charges were included only for customers who had fully removed their gas supply (less than 3% of customers). Actual savings vary depending on system design, tariff choice, home insulation, and energy use.
Our typical heat pump price is £4,459, which is lower than the national average of £5,600
This is the median post-survey price from all of our heat pump quotes after the £7,500 Boiler Upgrade Scheme has been applied, between 01/09/2025 and 28/02/2026. The national average is taken from the Boiler Upgrade Scheme statistics: April 2026 – median cost of installation Q4 2025.
Cut carbon emissions by 82% with a heat pump
This is the typical reduction in heating carbon emissions using an electric powered heat pump compared to a gas boiler.
The carbon breakdown
Gas CO2 (tonnes per year) - 2.42
Electricity CO2 (tonnes per year) - 0.43
Carbon saving (tonnes per year) - 1.99
Data sources and assumptions
Gas Energy Usage (kWh) 11500 (Ofgem medium use gas usage (Jun 2026))
Heat Pump Efficiency 312% (typical seasonal coefficient of performance from a fleet of Octopus high temperature heat pumps)
Gas Boiler Efficiency 85% (The typical gas boiler efficiency from a BEIS study)
Gas fuel emissions of (gCO2/kWh) 210 (SAP 10.2)
Electricity fuel emissions of (gCO2/kWh) 136 (SAP 10.2)
Based on these sources, heat pumps typically produce lower operational emissions when heating the home than gas boilers.
For more information, explore our Octopus Cosy heat pump fleet performance dashboard.
We're the largest heat pump installer on the Boiler Upgrade Scheme
Based on Octopus benchmarking against Ofgem reports from 2024, and we've continued to grow since.
Our customers love their heat pumps!
- 93% of people say it's the same or more comfortable than their previous boiler
- 87% say it costs the same to run or less
- 83% say it's the same noise or less than the previous boiler
- 90% say it's just as easy or easier to maintain
We survey all our heat pump customers 3 months post-installation to see how they find their heat pump compared to their previous gas boiler. Survey results are taken from a sample of 2,837 customers:
Comfort: 93% of people say it is the same or more comfortable than their previous boiler.
Running Costs: 87% say it costs the same to run or less.
Noise: 83% say it is the same noise or less than the previous boiler.
Maintenance: 90% say it is just as easy or easier to maintain.
A heat pump is around 4x more efficient than a gas boiler
Heat pumps don't generate heat by burning fuel. Instead, they transfer existing heat into your home. This means they can deliver multiple units of heat for each unit of electricity used.
Based on performance data from a fleet of installed Octopus Cosy heat pumps, typical real-world seasonal performance (SPF or SCOP) is around 3.6. This means around 3–4 kWh of heat is delivered for every 1 kWh of electricity used (an effective efficiency of 300–400%). By comparison, typical UK domestic gas boilers operate at around 85% efficiency, delivering approximately 0.85 kWh of heat per 1 kWh of gas used. On this basis, a heat pump can be around 4× more efficient than a typical gas boiler.
All our heat pumps are independently tested by the Building Research Establishment (BRE), with SCOP values published on the Microgeneration Certification Scheme (MCS) product database. Actual efficiency will vary depending on the property, system design, and usage. For more information, explore our Octopus Cosy heat pump fleet performance dashboard.
The UK's most awarded energy supplier
We've won more awards for customer service than anyone else.
Heat pumps give reliable, consistent heating and hot water
The heat pump user survey report by Nesta from May 2023 summarises that "users are highly satisfied with their heat pumps". It states: "People living in England, Scotland and Wales who own their home and use a heat pump to heat it are satisfied that heat pumps are safe, reliable, quiet heat sources that are effective for space heating and producing hot water." Find the full report here.
The Cosy heat pump is quiet
Heat pump sound power levels are verified by an independent, third-party laboratory as part of the testing process for inclusion on the MCS product database. The laboratory verifies the sound power on the A-weighted decibel curve, as A-weighting closely aligns to how humans perceive "loudness".
All heat pumps are measured using EN14511 standards to ensure uniformity across manufacturers and models. Our Cosy 6 heat pump has a verified sound power level lower than many other heat pumps of the same capacity.
Heat pump heating makes the air healthier in your home
Homes with a heat pump emit far less harmful nitrous oxide (NOx) emissions than those with gas boilers and cookers, significantly reducing asthma and other respiratory illnesses. According to the Sustainable Markets Initiative Cleantech Homes report.
A heat pump can add thousands to your property value
Analysis by the Department of Land Economy at the University of Cambridge suggests a 16% value uplift for new-build homes with enough solar and battery storage to eliminate energy bills. A further study of over five million existing properties indicates a 2-3% value increase for existing homes with solar panels or heat pumps (versus like-for-like gas-heated homes), according to the Sustainable Markets Initiative: Cleantech Homes report, 2024.
As of April 2025, the average house price in the UK is £265,497 according to the Land Registry. Therefore, a 2-3% value increase for an average house priced at £265,497 would be between £5,310 and £7,965.
Heat pumps typically last longer than gas boilers
The expected lifespan of a typical gas boiler is 10–15 years. A heat pump typically has a lifespan of 15–20 years, with UK government research indicating an average of around 20 years. Manufacturer Daikin reports similar ranges. Actual lifespan depends on factors such as installation quality, maintenance, usage patterns, and operating conditions.
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Milly Sullivan
Writer