Cheapest Way to Heat a House in the UK
Stay warm this winter, without breaking the bank.
Published: September 28, 2022 Author: Matt Jackson
With more rain than many of our European neighbours and average winter temperatures of just 2-7 degrees Celsius, central heating systems are essential in the UK. But with ever-increasing heating bills and prices expected to soar again this year, many homeowners are looking for cheaper ways to heat their property.
Thankfully, there are many fuel sources available in the UK, from gas, electricity, liquid petroleum gas (LPG), and heating oil to greener options such as renewable energy heat pumps and switching could save a fortune on your annual heating bills.
In this article, we will cover the various central heating systems available to British homeowners to help you find the cheapest one for your apartment, bungalow, or house. We will compare costs, explain how you can reduce your energy bills without spending a fortune, and provide guidelines on installing a new heating system.
Whether you live on-grid or off, you will find top tips on switching your energy supplier right here, with our guide to the cheapest central heating options in the UK in 2022.
UK Central Heating Annual Running Cost Comparisons
Mains gas, electric, heating oil, and LPG are the most popular central heating systems installed in Great Britain. Here we compare the costs, based on current UK averages, for a medium house using 13,500kWh for heating and hot water:
Mains Gas Total Annual Cost – £600.60
- Cost per /kWh = 3.8p
- Fixed annual fee = £87.60
- Average household bill = £513.00
Electric Central Heating Total Annual Cost – £1963.00 (savings of £500+ possible with Economy 7)
- Cost per /kWh = 14.37p
- Fixed annual fee = £73.00
- Average household bill = £1890.00
Heating Oil Total Annual Cost – £625.60
- Cost per /kWh = 6p
- Fixed annual fee = £87.60
- Average household bill = £538.00
LPG Central Heating Total Annual Cost – £1212.60
- Cost per /kWh = 7.6p
- Fixed annual fee = £87.60
- Average household bill = £1125.00
It is easy to see that gas central heating systems are considerably cheaper than electricity systems, but in a world where gas is becoming increasingly scarce (and expensive), is it the right choice for your family home?
If your property is well-insulated, a heat pump could be a better choice, and you could even receive a £5,000 grant from the government under its Renewable Heat Incentive. But installation costs are high, so this is something to consider when weighing up the pros and cons of each type of heating system.
Gas vs. Electricity – Which is the Most Efficient?
Electric central heating systems may be the most expensive, but electric radiators are 100% efficient, making them the most heat-efficient of all heating systems. Gas radiators are only 90% efficient, meaning 10% of your heating costs go to waste.
Mains gas is undoubtedly the most cost-effective heating system in the UK, but if you live off-grid and don’t have access to a local network, you may have to look elsewhere for your heating supply.
LPG Heating Systems for Off Grid Homes
Approximately 15% of UK homes do not have access to a mains gas supply. If this applies to you and you live off-grid, an LPG heating system may be the cheapest option for your property. It works the same way as the mains gas system, and it is compatible with all gas central heating systems, but rather than having gas piped into your home, you store it in a tank on your property.
LPG tankers deliver fuel to your home, and you pay an annual fee to rent the tank. Some LPG providers offer storage bottles for smaller properties, so if you do not have room for a tank, this could be an option.
Heating oil is also suitable for off-grid homes, and much like LPG, you store it in a tank on your property. While central heating oil is typically cheaper than LPG, installation can be expensive, and these systems require regular maintenance to maximise their energy efficiency. If you are considering both options, here are some figures to help you make a more informed decision:
Average kWh Costs
- LPG Heating Systems = 7.6p per kWh
- Heating Oil Systems = 6.0p per kWh
- Electricity Heating Systems = 14.37p per kWh
Again, electricity is the most expensive option, but homeowners using the Economy 7 multi-tariff rate can make considerable savings.
With Economy 7, you pay different rates for your electricity throughout the day. Nighttime rates start at around 6p per kWh, while day rates average at 16p per kWh. If you combine this with a home electricity storage system, your electric heating system could work out cheaper than an LPG or heating oil system. But you will only save significantly if most of your appliances run at night.
Another option is to use bottled gas to heat your home. Butane and propane gas bottles are widely available and relatively inexpensive when compared to electricity, costing anywhere between 14p and 32p per kWh. But it is 10% less energy efficient.
Based on our calculations, you can expect the following from your gas bottle heating:
- 6kg cylinder = 77 kWh / refill price £25
- 13kg cylinder = 168 kWh / refill price £33
- 47kg cylinder = 606 kWh / refill price £85
Heating Your House FAQ’s
Here we summarise popular questions about saving money heating your house.
Renewable energy is fast becoming the most popular choice for new builds in the United Kingdom. Cleaner and most cost-efficient than fossil fuel alternatives, renewable energy is the smart choice for any family home. And best of all, you may be able to claim a grant under the Government’s Boiler Upgrade Scheme (BUS) if you use an MCS-certified installer.
From 2022 to 2025, domestic property owners in England and Wales can claim the following grants:
- £5,000 towards the cost/installation of an air-source heat pump
- £5,000 towards the cost/installation of a biomass boiler
- £6,000 towards the cost/installation of a ground-source heat pump
You can apply for one BUS grant per property; however, your renewable energy installation company must apply on your behalf. Visit the official government website for further information.
While some energy suppliers suggest you can save money by leaving your heating running low all day, others recommend that you heat your home only when needed.
We do not believe that anyone should feel cold at home but putting on an extra layer rather than turning on your heating could save hundreds on your household energy bills. We’re yet to be convinced that you will save money by leaving it on low.
We recommend using both; your main thermostat to set an ambient home temperature and your individual radiator thermostats for customised heating in each room. As a rule, smaller rooms need less heat, so you may be able to turn down the radiators in small bathrooms and bedrooms. Similarly, if you are not using some rooms, you can turn off the radiators altogether.
As combi boilers are considerably more heat-efficient than conventional boilers, they are cheaper to run.
