Heat pump vs gas boiler vs oilrunning costs
For most Scottish homes, a heat pump cuts heating bills by 30–50% vs gas and 60–70% vs oil — and qualifies for up to £7,500 in government grants.
Checked August 2026. Zero-rated VAT applies until 31 March 2027.
Annual running costs at a glance
Typical 3-bed semi-detached home with 12,000 kWh annual heat demand.
| Fuel type | Annual cost (3-bed semi) | CO2 emissions | Price trend | Government grant eligibility |
|---|---|---|---|---|
Gas boiler | ~£1,100 / yr | 2.7 t CO2 | Rising Gas levy exposure | Ineligible No government grant |
Oil boiler | ~£1,700 / yr | 3.2 t CO2 | Volatile Crude-linked swings | Ineligible No government grant |
Air source heat pump | ~£700 / yr(SCOP 3.5) | 0.8 t CO2 | Falling Smart tariffs emerging | Eligible Up to £7,500 government grant |
Gas boiler
- Annual cost
- £1,100/yr
- CO2 / yr
- 2.7 t
- Price trend
- Rising Gas levy exposure
- Government grant
- Ineligible No government grant
Oil boiler
- Annual cost
- £1,700/yr
- CO2 / yr
- 3.2 t
- Price trend
- Volatile Crude-linked swings
- Government grant
- Ineligible No government grant
Air source heat pump
- Annual cost
- £700/yr
- CO2 / yr
- 0.8 t
- Price trend
- Falling Smart tariffs emerging
- Government grant
- Eligible Up to £7,500 government grant
What the numbers assume
- Seasonal COP (SCOP)
- 3.5
- Annual heat demand
- 12,000 kWh
- Electricity unit rate
- 24.5p / kWh
- Gas unit rate
- 6.8p / kWh
- Heating oil price
- 65p / litre
- Price snapshot
- August 2026
Individual savings depend on property insulation, local climate, chosen tariff, and system sizing. Figures are illustrative estimates, not a guarantee.
Sources
- Ofgem price cap Q3 2026
- BEIS Digest of UK Energy Statistics (DUKES)
- Energy Saving Trust (EST) heating cost methodology
Checked August 2026
Source: Scottish Government grant scheme, checked August 2026. Amounts depend on the measures installed and your eligibility.
Ready to see what you could save?
Get a personalised running-cost estimate for your home — including the £7,500 government grant and zero-rated VAT (until 31 March 2027).
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Data is free to cite with attribution. Checked 15 October 2026.
