If you’re wondering whether gas is cheaper than electricity for heating your home, the short answer is yes. Gas still costs less per kilowatt hour than electricity in the UK. However, the overall cost of heating your home also depends on your heating system, its energy efficiency and the wider UK energy costs affecting households throughout the year.
In this guide, we’ll compare the cost of gas and electricity, explain what affects your heating bills and look at when electric heating may be the better choice. We’ll also explore how modern heating systems, including heat pumps, compare with traditional gas boilers. At Nu Age, we help homeowners improve their heating efficiency with expert advice, boiler services and heating installations that are built around their property’s needs.
In most cases, yes. Natural gas is still significantly cheaper than electricity on a cost-per-unit basis, making it the more affordable choice for many UK homes connected to the gas network. However, comparing unit prices alone doesn’t always tell the full story, as the type of heating system you use also affects your overall energy costs.
The table below shows the average unit prices under the current energy price cap.
| Energy Source | Average Unit Price |
|---|---|
| Gas | Around 7.33p per kWh |
| Electricity | Around 26.11p per kWh |
Although electricity has a much higher unit price, today’s electricity unit prices don’t always mean gas will cost less overall. Modern heating systems can change the picture considerably. For example, modern heat pumps can produce several units of heat for every unit of electricity they use, making them much cheaper to run than traditional electric heaters in many situations.
Gas central heating remains the most common way to heat homes across the UK. For properties with a gas connection, a modern gas boiler usually provides a cost-effective way to produce both heating and hot water.
One of the biggest advantages of gas heating is its lower unit cost. Modern gas boilers are also highly efficient, with many converting around 90% of the fuel they use into heat. This high gas efficiency helps keep running costs lower than many traditional electric heating systems.
Even though gas is generally cheaper than electricity, several factors can influence how much you spend on heating.
Looking after your gas appliances, including your boiler, can help maintain efficiency and reduce unnecessary energy use over time.
Electric heating is available in several forms, and the cost of running electric systems can vary considerably. While electricity has a higher unit price than gas, some modern electric heating systems are much more efficient than others, helping reduce long-term running costs.
Electric boilers and electric heaters convert electricity directly into heat. They’re often a good choice for properties without a gas connection and can be straightforward to install. However, because electricity costs more per kilowatt hour than natural gas, they’re usually more expensive to run than gas boilers.
Storage heaters use electricity during off-peak periods before releasing heat gradually throughout the day. If you have access to cheap off peak electricity, they can be a cost-effective option for some households.
Heat pumps work differently from traditional electric heating. Rather than generating heat directly, they transfer heat from the outside air or the ground into your home. This makes them significantly more energy efficient, allowing them to produce several units of heat for every unit of electricity they use. Although the upfront costs are higher, heat pumps can offer lower running costs over the long term in the right property.
For most homes with a gas connection, gas heating still offers lower running costs because natural gas has a much lower unit price than electricity. However, the most affordable option will also depend on your heating system, your property’s energy efficiency and how much heat you use each day.
| Factor | Gas Heating | Electric Heating |
|---|---|---|
| Unit price | Lower | Higher |
| Running costs | Usually lower | Vary depending on the system |
| Installation costs | Often lower for existing gas homes | Vary depending on the system |
| Maintenance | Annual boiler servicing recommended | Depends on the heating system |
| Carbon emissions | Higher | Lower when using renewable electricity or heat pumps |
Rather than focusing on fuel prices alone, it’s worth looking at the overall cost of ownership. A well-insulated home with an efficient heating system may cost less to heat than a poorly insulated property, regardless of whether it uses gas or electricity.
A common question homeowners ask is whether electricity cheaper than gas is now a reality. In most cases, the answer is still no when comparing unit prices alone. However, modern heat pumps and well-insulated homes can narrow the gap considerably.
If you’re wondering, is gas heat cheaper than electric heating, the answer is generally yes for homes connected to the gas network. Modern gas boilers combined with lower gas unit prices usually result in lower running costs than standard electric heating systems.
The cost of heating your home depends on much more than whether you use gas or electricity. Your heating system, the condition of your property and your daily habits can all have a noticeable impact on your energy bills.
Different heating systems operate in different ways. Older gas boilers, electric heaters and modern heat pumps all have varying levels of efficiency, which can affect how much energy they use to keep your home warm.
A more energy-efficient heating system generally requires less energy to produce the same amount of heat. Upgrading to a newer model can often help reduce running costs over time.
Good insulation helps retain heat inside your home, reducing the amount of energy needed to maintain a comfortable temperature. Poor insulation allows heat to escape more quickly, meaning your heating system has to work harder.
Heating water accounts for a significant proportion of household energy use. The more hot water your household uses, the higher your overall energy costs are likely to be.
Gas and electricity prices change over time, and the unit rates offered by energy suppliers can vary. Changes to electricity bills and gas prices can quickly affect household budgets, so reviewing your tariff regularly may help reduce your overall energy costs. Keeping an eye on energy prices and choosing a suitable tariff may help reduce your household energy costs.
Although gas is generally cheaper than electricity on a per-unit basis, there are situations where electric heating can be the more cost-effective choice.
Modern heat pumps are one example. Rather than generating heat directly, they transfer heat from the outside air or the ground, allowing them to produce several units of heat from every unit of electricity they use. This high level of efficiency can help offset the higher price of electricity.
Electric heating may also suit properties without a gas connection, well-insulated homes with lower heating demands or households generating their own renewable electricity through solar panels. In these situations, electricity can become a more attractive long-term option, particularly when paired with modern heating technology.
Whether your home uses gas or electricity, there are several ways to reduce running costs without sacrificing comfort. Improving your home’s energy efficiency can make a noticeable difference to your monthly energy bills.
A well-insulated home retains heat for longer, reducing the amount of energy needed to stay warm. Loft insulation, cavity wall insulation and draught-proofing can all help improve your home’s energy efficiency.
If you have an older gas boiler, replacing it with a newer, more energy-efficient model may reduce both gas usage and running costs. Modern boilers are designed to make better use of the fuel they consume.
Smart heating controls allow you to programme your heating around your daily routine. Heating your home only when it’s needed can help reduce wasted energy and lower your energy bills.
Keeping your heating system well maintained helps it operate efficiently throughout the year. Annual servicing can also identify minor issues before they develop into more expensive repairs.
If you’re planning a long-term upgrade, renewable heating options such as heat pumps or solar panels may help reduce your reliance on fossil fuels. Although installation costs can be higher, they may offer lower running costs over time in the right property.
Choosing between gas and electricity isn’t always straightforward. The best option depends on your property, your budget and the type of heating system that’s already in place. Getting professional advice can help you make an informed decision and avoid unnecessary energy costs.
At Nu Age, we provide expert guidance on boiler installations, servicing, repairs and modern heating solutions for homeowners across Coventry and the surrounding areas. Whether you’re replacing an ageing boiler or exploring more energy-efficient options, we’ll help you find a solution that’s right for your home.
To discuss your heating requirements or arrange a free quotation, call 02476 950 000 or contact Nu Age today. Our experienced team is here to help you improve comfort, reduce running costs and get the most from your heating system.
