Heating Systems Compared: Gas vs. Heat Pump vs. Pellet

The question of which heating system to choose arises during the design phase—and the answer hits your wallet for 30 years. The comparison is for a 120 m² home (replacing an old system).

Installation Costs

• Gas (condensing boiler + connection): £3,000–£5,000 (if gas is at the road, the connection can be an extra £1,000–£3,000)
• Air-to-water heat pump: £6,000–£12,000 (with government eco-grants, this can be £3,000–£7,000)
• Pellet (boiler with feeder + storage): £5,000–£9,000

Annual Operating Costs (120 m², good insulation)

• Gas: £700–£1,100/year
• Heat pump: £400–£700/year (depending on tariff and COP)
• Pellet: £600–£900/year (pellet prices fluctuate with the market)

Decision Table

• Urban location/staged insulation upgrades, low initial costs: gas.
• Homes qualifying for grants and looking for low long-term bills: heat pump.
• Access to cheap wood, acceptance of boiler maintenance: pellet.

What to consider beyond fuel price

• Electricity for heat pumps and pellets — a heat pump requires £700–£1,000/year of electricity (though it provides 3–4× more heat).
• Dual-zone tariffs and solar PV — they work synergistically with a heat pump.
• Service — pellet requires weekly maintenance; gas and heat pumps are virtually maintenance-free.

Compare offers for a heating system upgrade — publish a request on LocalTrader with a description of your home and its insulation.