The secret to a heat pump’s efficiency lies in its technology. Unlike a boiler that burns fuel to create heat, a heat pump works by moving existing heat from the outside air into your home. This process is a game-changer, allowing heat pumps to achieve an efficiency of up to 330%, compared to a typical gas boiler’s 85%. This means for every single unit of electricity you use, you get more than three units of heat in return.

This dramatic difference in efficiency translates directly into lower energy usage and costs. For a typical home with a medium energy usage, Octopus Energy’s data shows that switching to a heat pump on the Cosy Octopus tariff can save you up to £369 per year. If you have a high-use home, those savings could climb even higher, up to £496 annually.

 

A Detailed Breakdown of the Savings

 

Let’s break down the numbers to see exactly how these savings are achieved. Octopus Energy provides a clear comparison of a gas boiler versus a heat pump, both meeting the same annual heat demand of 9,775 kWh.

Feature Gas Boiler (on Octopus Flexible Tariff) Cosy Heat Pump (on Cosy Octopus Tariff)
Annual Heat Demand 9,775 kWh 9,775 kWh
Heating Efficiency 85% 330%
Annual Heating Energy Usage 11,500 kWh 2,962 kWh
Total Energy Bill £1,719 £1,350
Total Bill Savings £369

As you can see, to meet the same heat demand, the gas boiler consumes a massive 11,500 kWh of energy, while the heat pump requires just 2,962 kWh. This difference is the core reason for the significant savings. Furthermore, the heat pump benefits from a lower electricity price and standing charge on the Cosy Octopus tariff, further reducing the overall bill.

 

Making the Right Choice: Comparing Heating Systems

 

When considering a new heating system, it’s important to understand the different options available, particularly when comparing heat pumps with traditional gas boilers.

Air Source vs. Ground Source Heat Pumps

Octopus Energy focuses on Air Source Heat Pumps (ASHPs), which are the most common type in the UK for a good reason.

  • Air Source Heat Pumps (ASHP): These are the most popular choice because they are generally more affordable and far less disruptive to install. They work by extracting heat from the air outside your home, and while their efficiency can be affected in extremely cold weather, modern ASHPs are highly effective and reliable.

  • Ground Source Heat Pumps (GSHP): These systems are typically more efficient and consistent year-round because they draw heat from the ground, which maintains a more stable temperature. However, they come with significant drawbacks, including a much higher upfront cost and the need for a large garden for the extensive excavation required to lay underground pipes.

Heat Pump Savings Referral

Heat Pump vs. Gas Boiler: A Deeper Look

Feature Heat Pump Gas Boiler
Upfront Cost Generally higher, but often offset by government grants like the Boiler Upgrade Scheme. Cheaper, but with no grant funding available.
Running Costs Lower annual costs due to incredibly high efficiency, especially when paired with a smart tariff. Can be higher due to lower efficiency, despite gas costing less per unit than electricity.
Environmental Impact Significantly lower, cutting carbon emissions by around 83% on average. High, as it relies on burning fossil fuels.
Lifespan Up to 20 years or more with proper maintenance. Typically 10 to 15 years.
Heat Delivery Delivers consistent, steady warmth for a comfortable, even temperature. Provides quick, high-temperature bursts of heat.

 

The Smart Way to Save Even More: The Cosy Octopus Tariff

 

The key to unlocking these savings is the Cosy Octopus smart tariff. This isn’t just a standard electricity tariff; it’s specifically designed for homes with heat pumps, offering cheap, green “Cosy” periods throughout the day. By using a smart thermostat and scheduling your heating and hot water to run during these low-cost hours, you can pre-heat your home and water more cheaply and efficiently. This smart scheduling can save you an extra £291 a year on top of the already lower running costs of the heat pump.

An added financial benefit of going fully electric is the ability to remove your gas supply entirely. This simple step can save you an additional £119 a year by eliminating the gas standing charge, leaving you with one simple energy bill and one supplier to deal with.

 

Making the Switch is Easy and Hassle-Free

 

Octopus Energy has made the transition to a heat pump seamless. They handle everything from the initial quote to the final installation, ensuring the process is smooth and stress-free. By making the switch, you’re not just saving money—you’re making a positive choice for the environment and joining a community committed to a sustainable future.

Ready to start saving and go green? Get £50 credit when you switch to Octopus Energy using my referral link: https://share.octopus.energy/sepia-calf-274