Electricity vs Gas Cost UK: What Actually Matters for Heating?

Is Electricity Always More Expensive Than Gas in the UK?

Electricity is more expensive than gas per bought unit in the UK, but that is not the same as saying it is always more expensive for heating. Using this site’s April 2026 planning assumptions, electricity is 24.5p/kWh and gas is 7.4p/kWh, yet the useful-heat cost from a heat pump can still compete with gas because the system multiplies each bought unit of electricity into several units of heat.

This is the core distinction most homeowners miss. Unit price matters, but useful heat cost matters more.

For the practical heating angle, read our heat pump running costs guide, heat pump vs gas boiler comparison, and energy bills UK 2026 article. If you want to compare your own property, start with our BUS grant survey page.

Why Is Raw Unit Price the Wrong Comparison for Heating?

Raw unit price is the wrong comparison because heating systems do not turn bought energy into useful heat at the same efficiency. Energy Saving Trust says heat pumps can generate around three units of heat for every unit of electricity used, while a gas boiler usually converts gas into useful heat with efficiency below 100%, often around 90% for a modern condensing system.

Here is the real comparison:

That table explains why electricity vs gas cost UK needs to be analysed in terms of technology, not just tariffs.

When Does Electricity Become Competitive With Gas for Heating?

Electricity becomes competitive with gas for heating when it is used through an efficient heat pump rather than through direct resistive heating, and when the system performance is high enough across the year. Energy Saving Trust’s heat pump efficiency guidance makes this clear: the heat pump wins by stretching each bought unit further.

Electricity usually looks competitive when:

1. The heat pump runs around SPF 3.0 or better.
2. Flow temperatures are kept sensible.
3. The property is a decent retrofit fit.
4. The tariff is standard or better.

This is why the “electricity is too expensive” objection is incomplete. The question is really about how you use electricity.

What Usually Determines Whether a Heat Pump Beats Gas?

The main determinants are system design, heat loss, controls, and tariff choice rather than postcode or brand alone. Nesta says 80% to 90% of UK homes already have enough insulation to run a heat pump, which means the difference often comes down to emitter sizing, flow temperature, and competent setup.

The biggest variables are:

1. Seasonal performance factor.
2. Annual heat demand.
3. Radiator and emitter suitability.
4. Control strategy and weather compensation.
5. Whether solar or time-of-use tariffs are present.

That is why a well-designed heat pump in an ordinary house can outperform a badly designed one in a supposedly “perfect” house.

Does Solar or a Better Tariff Change the Comparison?

Yes, significantly. Solar and specialist tariffs both improve the electricity side of the comparison by reducing the effective price paid for part of the heat pump’s demand. Energy Saving Trust says the average domestic solar system is around 3.5kWp, and Octopus-style tariff logic shows how lowering the imported electricity price can materially change annual heating economics.

Here is the practical effect:

This is why electricity vs gas cost UK is not only a tariff debate. It is also a whole-home energy-system debate.

Read our heat pump solar ROI guide, solar battery storage article, and Octopus Cosy heat pump guide for the next layer.

What Does This Comparison Look Like in London, Surrey, and TW Homes?

In London, Surrey, and TW homes, electricity can compare surprisingly well with gas for heating when the home is a solid heat pump candidate and the system is designed properly. MCS reported more than 30,000 certified heat pump installations in the first half of 2025, and the local pattern is that family houses and semis often have much stronger economics than people initially assume.

Typical local pattern:

1. 1930s semis often make strong heat pump candidates.
2. Larger Surrey houses benefit even more when solar is added.
3. Flats and tighter conversions often have weaker heating-upgrade options.
4. Planned replacement usually beats emergency replacement for economics.

That is why local surveying matters more than national argument.

It also means homeowners should be careful about drawing conclusions from neighbours or headline stories alone. Two homes on the same street can see very different electricity-versus-gas outcomes if one has a well-designed low-temperature system and the other does not.

That is also why boiler replacement timing matters. If you compare a heat pump against an ageing boiler that will soon need replacing anyway, the electricity-versus-gas question becomes part of a larger capital and running-cost decision rather than just a unit-price debate.

How Electromatic Can Help

If you want a real electricity vs gas cost UK answer for your own home, Electromatic can compare the likely useful-heat cost based on the property, the emitter setup, and the realistic heat pump design. That is more useful than comparing raw tariffs on their own.

Energy Saving Trust says heat pumps can generate around three units of heat per unit of electricity used, while GOV.UK says eligible heat pump installations can receive £7,500 through the Boiler Upgrade Scheme, subject to eligibility. Electromatic works under MCS certification via our accredited umbrella partner, so we can design compliant systems and handle the grant route correctly for suitable properties.

What we can help with:

1. Free survey for suitable homes in London, Surrey, and nearby TW areas.
2. Useful-heat comparison between gas and heat pump routes.
3. Advice on tariff and solar optimisation.
4. BUS grant handling, subject to eligibility.
5. Clear explanation of whether your home is a strong fit.

Book your free home survey →

Call us: 07718 059 284 | Email: admin@electromatic.uk

Frequently Asked Questions

Most people searching electricity vs gas cost UK want a quick answer, but the real answer depends on how the energy is turned into useful heat. That is why heating-system type matters so much.

Is electricity more expensive than gas in the UK?

Yes, per bought unit it is. Under this site’s April 2026 planning assumptions, electricity is 24.5p/kWh and gas is 7.4p/kWh.

Why can a heat pump still compete with gas?

Because a heat pump can generate several units of heat from one unit of electricity. That changes the useful-heat cost comparison dramatically.

Does a heat pump always beat gas on cost?

No. It depends on system performance, heat loss, and tariff structure. A badly designed heat pump can underperform.

Can solar make electricity cheaper than gas for heating?

It can improve the comparison materially by offsetting part of the imported electricity needed to run the heat pump.

Should I compare tariffs or useful heat cost?

Useful heat cost is the better comparison for heating decisions. Raw tariff comparison misses how differently boilers and heat pumps perform.

The information in this article is for general guidance only and does not constitute financial, legal, or technical advice. Energy savings estimates are based on typical UK household data from the Energy Saving Trust and Ofgem (April 2026 price cap). Actual savings depend on your property type, insulation levels, energy usage patterns, and electricity tariff. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via an accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.

Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)

Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345