What is a heat pump?

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What is a heat pump?
A heat pump is a highly efficient home heating system powered by electricity. Using trusted technology that's over 160 years old, heat pumps have proven to be popular in even the coldest European climates, with over 23 million heat pumps installed in Europe alone.
Air source heat pumps work by generating energy from the air outside that can be used to heat your home. Providing reliable, sustainable heating and hot water with smart benefits - suitable for installation in most UK homes.
Why get a heat pump?
Air source heat pumps give you comfortable, consistent heating and hot water. But with…
Less energy: Heat pumps use around 4x less energy than even the most efficient boilers to generate the same amount of heat.
Less carbon: That efficiency means you’ll instantly slash your heat carbon footprint by around 82%. Plus, heat pumps run on electricity, which is renewable with Octopus Energy.
Longer life: A heat pump can last 20 years, up to twice as long as a gas boiler.
Lower running costs: 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.
How do heat pumps work?
A heat pump extracts heat from the air outside and brings it into the home using electricity. This means you get a bigger quantity of heat with less electrical power usage.
Heat pumps harness energy from the environment (in our case, from the air). They then use that energy - together with a smidge of electricity - to heat the water in your pipes, and so your home.
Air heat pumps work just like a fridge, but in reverse, by using pressure to cause a refrigerant to change its state from liquid to gas and back again, which enables the refrigerant to transfer the heat energy. See them in action below ⬇️
How much does it cost?
Our typical heat pump price is £4,459, which is lower than the national average of £5,600. Your final heat pump quote will depend on factors such as the size of the heat pump required and the energy efficiency of your home, so costs for larger or more complex homes will be higher.
The best way to get a cost estimate for your home is to get a quote.
There are some potential additional costs to consider when getting a heat pump, depending on your home, so check out our FAQs for full details on what is and isn't included in your quote.
What are the running costs of heat pumps?
We’re the largest installer of heat pumps in the UK and we’re obsessed with making heat pumps and their running costs more affordable. A good example is our tailored heat pump smart tariff, Cosy Octopus. 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.

Heat Pump vs Gas Boiler
Is a heat pump better than a boiler? Let's see what the people say! We did a survey of 1,750 people, and this is what we found out:
Cost-effectiveness: 87% say it costs the same to run or less.
Warmth: 93% of people say their heat pump is as or more comfortable than their previous boiler.
Heat pump installation made easy
Whether it’s your first time or you’re looking to replace a heat pump system, we’re here to say it’s not as scary or as pricey as it sounds.
We make heat pump installation easy by taking care of everything, from the home survey to the final install, including all the paperwork and aftercare.
See exactly what happens during an Octopus heat pump installation in this short video.
What's installed with the heat pump?
With Octopus, the cost of a heat pump includes all of the hardware required for a new heating system, installation (and more). That includes any radiators necessary for your air source heat pump system and design. The biggest devices are:

An air source heat pump
This will be installed on an external wall, usually in the garden.
We will install either a Octopus Cosy 6 heat pump, a Cosy 9, or a Daikin heat pump, depending on what’s the best fit for your home.

A compatible hot water cylinder
This is roughly the size of a modern fridge freezer, on the ground or first floor of your home (the closer to the outside the better).
The cylinder can also be installed in a garage, outdoors in a purpose-built store, or in the loft, but this may decrease the efficiency of your heat pump.
That's because it takes more energy to heat the water when the cylinder is exposed to the cold.
With an Octopus heat pump, you’ll be able to set your schedule and temperature from wherever, whenever with an app on your phone. Plus, you'll have a button to boost the temperature when you need it.
Air source heat pumps use electricity, but are highly efficient, often delivering 3 to 4 units of heat for every unit of electricity used, meaning lower energy bills in the long term. You can read more about air source heat pumps in our dedicated blog.
How do I get a heat pump installed?
Heat pump installation is so simple, you’ll wonder why you didn’t do it sooner. Just ask Aaron, or any of our happy customers who made the switch to a heat pump. Only 3 steps to follow:

Step 1: Get a quick estimated heat pump quote
Just enter a few details and your personalised quote will include an estimated cost. Once happy, we take a £200 deposit that’s fully refundable until you sign your final installation agreement.
Step 2: Home survey and design
We’ll pop over to take some measurements & check if your home is suitable for a heat pump, or if any extra work is needed. Then our experts will design your tailored heat pump system before providing your final fixed heat pump quote and estimated running costs.
Step 3: Expert installation
Once tweaks are finalised – installation is booked. You’ll have access to Octopus support 7 days a week, plus we can set up a maintenance plan and help you find the right heat pump tariff to make savings.

Curious what others think?
Dive into our heat pump reviews and see how real Octopus customers made the switch, and never looked back!
Check out customer stories
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Use our savings calculator to see how much you could save by switching to a heat pump.
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.