The Most Cost-Effective Way to Heat Your Home

As winter approaches, many are searching for cost-effective ways to heat their homes.

An effective heating system is vital to keep you warm but it can lead to hefty energy bills and an even bigger carbon footprint.

Gas central heating is the most common type of home heating in England, Wales and Scotland but it is not the only option.

Over a million homes are not connected to the gas grid and use oil, LPG, electric heating or renewable energy for heating and hot water.

The average UK household uses approximately 12,000 kWh of gas annually for heating, hot water and cooking.

Between 75 and 80% of this is for space heating. Between October and December, heating is used significantly more as temperatures drop.

We compare gas central heating with other heating methods to determine what is the most cost-effective way to heat your home.

Please note that these are an assumption based on calculations and will vary per household depending on usage.

Gas Central Heating

Based on annual usage patterns, about 60% of the yearly gas consumption occurs in the colder months (October to March), with peak usage in the winter.

This means that between October and December, households use about 4,200–5,000 kWh of gas. This means that daily usage could be 45–55 kWh per day, assuming moderate heating use (4-6 hours a day).

The price of gas varies depending on the supplier, but for a rough estimate, let’s assume 10p per kWh.

Gas suppliers also charge a fixed daily standing fee, which can range from 20-30p per day.

The amount of gas used for heating will depend on how long the heating system is on each day and the desired indoor temperature. In the colder months, households might heat their homes for 4-6 hours per day to maintain a comfortable temperature between 18°C and 21°C.

Based on this, energy consumption might range between 45 kWh and 55 kWh per day.

Now, we can calculate the approximate daily heating cost:

Daily gas usage (45-55 kWh) multiplied by the cost of gas (10p per kWh). Add the daily standing charge of 20-30p.

This equals £5.25 per day and between October and December, the total heating cost can range from £450 to £550.

Electric Heating

Electric heating typically uses resistive heaters (such as storage heaters, fan heaters, or radiators) that convert electricity into heat with nearly 100% efficiency, but electricity is more expensive than gas.

Electric heating consumes more energy per unit of heat output.

For the same level of heating (45-55 kWh equivalent), an electric heater would use the same number of kWh of electricity.

The cost of electricity per kWh is around 30p while electricity standing charges are usually around 40-50p/day.

When calculating the cost, the daily total is between £14 and £17.

This is far more expensive than gas central heating so when using electric heating, it will be better to use it to heat one room.

Based on the same assumptions, heating one room is £3.50 to £4.10 per day.

Heat Pump

Heat pumps are more efficient than gas boilers and electric heaters.

They use electricity but can produce 3-4 kWh of heat for every 1 kWh of electricity used (with a Coefficient of Performance (COP) of 3-4).

Assuming a COP of 3, for 45-55 kWh of heat, a heat pump would only need 15-18 kWh of electricity per day.

The electricity cost per kWh is 30p while the standing charge is 40-50p per day.

• For 15 kWh/day: 15 kWh × 30p = £4.50/day.
• For 18 kWh/day: 18 kWh × 30p = £5.40/day.

When you factor in the standing charge (50p), the daily cost is £5 – £5.90.

Heat pumps are roughly similar in cost to gas heating, with daily costs of £5 – £5/day versus £4.75 – £5.75/day for gas. However, heat pumps are more energy-efficient and eco-friendly.

Oil Heating

Many rural homes use oil-fired boilers for heating. The price of heating oil varies, but we’ll use a typical price.

Oil heating consumes roughly the same amount of energy as gas heating (45-55 kWh/day).

The price of oil is around 9-11p per kWh but this varies with market conditions.

While there is no standing charge for oil, delivery and maintenance costs apply.

When calculating the approximate costs, it ranges between £4.50 and £5.50 per day.

Oil heating is slightly cheaper than gas, with an estimated cost of £4.50 – £5.50 per day, but it lacks convenience (you need oil deliveries) and can fluctuate based on market prices.

When it comes to home heating, gas boilers and oil heating remain the most affordable options for daily use in the UK, with oil sometimes edging out gas depending on fluctuating market prices.

Both methods provide cost-effective warmth, particularly during the colder months, although they are not the most environmentally friendly choices.

On the other hand, heat pumps offer an eco-friendly alternative that rivals gas boilers in cost.

While heat pumps use electricity, their high efficiency (generating 3-4 kWh of heat for every 1 kWh of electricity) makes them an attractive option for households looking to reduce their carbon footprint.

With running costs similar to gas heating, heat pumps can drastically lower emissions without significantly increasing daily heating expenses.

However, electric heating is the most expensive option, often costing 2.5 to 3 times more than gas heating.

For those relying on electric heaters, the costs can quickly add up, especially if used to heat the entire house.

For households prioritising both cost-efficiency and sustainability, switching to a heat pump is a smart investment.

It can lower carbon emissions without a major cost increase, while gas and oil heating remain the go-to options for those focused solely on affordability.