Is Electric Heating Cheaper Than Gas

Electric heating and gas heating each come with their own advantages, but when it comes to running costs, gas is typically cheaper than electricity for most UK households. Despite this, electric systems are often promoted for their efficiency and ease of installation — especially in flats, smaller homes, or properties without access to mains gas. The decision between the two involves more than just unit cost — it depends on how your home is built, how it retains heat, and what kind of heating habits you have.

Understanding the full picture means looking beyond tariffs and considering installation costs, maintenance, and long-term energy efficiency. While electricity is usually more expensive per unit, some electric heating systems can be more efficient in certain scenarios.

Comparing Unit Costs

In the UK, electricity costs significantly more per kilowatt-hour (kWh) than gas. On average, electricity costs around three to four times more per unit than mains gas. This means that for the same amount of heat output, electric heating is generally more expensive to run. For homes with high heat demand — especially during colder months — gas central heating tends to be more economical in the long run.

That said, not every property has access to the gas grid. In off-grid areas, homeowners may rely on electricity, LPG, or oil, and in these cases, modern electric systems can be a practical alternative.

Efficiency of Electric Heating

Electric heating is often described as 100% efficient at the point of use. This means that every unit of electricity is converted into heat with no waste. Electric radiators, panel heaters, and underfloor systems all deliver direct, clean heat, and they are typically easy to control with thermostats or timers.

Gas boilers, on the other hand, lose some energy during combustion and flue ventilation. Even high-efficiency condensing boilers have some heat loss. However, because gas is cheaper per unit, the slightly lower efficiency still usually works out more affordable for whole-house heating.

Installation and Maintenance Costs

Electric heating systems are usually cheaper and quicker to install. There’s no need for flues, pipework, or boilers, and the units themselves tend to be smaller and simpler. This makes them attractive in flats, new builds, or homes being refurbished with minimal disruption.

Gas systems have higher upfront costs, especially when installing a new boiler or extending pipework. They also require annual servicing by a Gas Safe registered engineer. While electric systems have fewer moving parts and don’t require servicing, they may have shorter lifespans depending on the product quality.

Suitability for Modern Homes

In new, well-insulated homes, the gap between gas and electric running costs is smaller. If the property holds heat efficiently, electric radiators or underfloor systems can be effective with shorter bursts of use. Smart controls and zoning systems also allow precise control, so energy is only used where and when it’s needed.

Electric heating is also a common choice in high-rise flats or developments where installing a gas network is not practical. For these properties, the compact nature of electric heating — along with low maintenance needs — makes it a suitable solution, despite higher per-unit costs.

The Role of Renewable Energy

With the growth of home solar panels, time-of-use electricity tariffs, and battery storage, electric heating is becoming more appealing. If electricity is generated renewably and used efficiently, the environmental impact is reduced, and running costs can drop significantly. Gas heating remains reliant on fossil fuels, although hydrogen blending may play a role in the future.

For homeowners who plan to invest in green energy or switch to heat pumps, electric heating infrastructure may offer better long-term flexibility. It aligns more easily with low-carbon goals and future-proofing as the UK moves toward net zero.

Time-of-Use Tariffs and Off-Peak Electric Heating

One of the ways electric heating can become more competitive with gas is through time-of-use tariffs, such as Economy 7 or Economy 10. These electricity tariffs offer cheaper rates during off-peak hours — typically overnight — which can make storage heaters or underfloor systems far more economical if used correctly.

Homes with well-insulated thermal mass, like thick brick or stone walls, can retain heat from off-peak periods and release it slowly throughout the day. However, this setup requires careful timing and understanding of your system. If heaters are run during peak hours, costs can climb quickly and outweigh any benefit from off-peak rates.

Modern smart tariffs, combined with electric-only systems, are beginning to shift this balance further, especially when paired with home battery storage and automated controls that optimise when power is used.

Hidden Costs of Gas Heating

While gas heating is generally cheaper in terms of fuel cost per kilowatt-hour, it does carry additional expenses that are sometimes overlooked. Gas boilers require annual servicing, which adds to the long-term cost of ownership. There’s also the eventual replacement cost — boilers usually last around 10–15 years, and replacements can be expensive, especially when factoring in installation, flue upgrades, or system flushing.

Gas appliances also carry greater safety obligations. You need a Gas Safe registered engineer for any installation or repair work, and landlords are legally required to carry out annual gas safety checks. These ongoing responsibilities add a layer of expense and regulation that electric systems avoid entirely.

Repairs, Downtime, and Lifespan

Electric heating systems generally have fewer mechanical components than gas systems, which means there are fewer things that can go wrong. While electric heaters can and do fail, they're often quicker and cheaper to replace than boilers or complex gas pipework. Most standalone electric heaters — including modern wall-mounted units — are plug-and-play or require minimal installation, making repairs less disruptive.

Gas systems, by contrast, can experience a range of issues from pressure drops and valve failures to combustion faults or flue blockages. Repairs often involve more complex diagnostic work and can leave a home without heat or hot water for longer periods during winter if parts or appointments are delayed.

The Impact of Energy Price Volatility

The comparison between electric and gas heating also shifts over time based on market prices. Over the last few years, both electricity and gas prices have fluctuated due to global demand, supply chain pressures, and political events. However, electricity prices tend to be more stable in the long run, particularly as the grid becomes increasingly powered by renewables.

Gas, as a fossil fuel, remains susceptible to wholesale market shocks and may become less predictable as global climate targets push for decarbonisation. This volatility makes electric heating — especially when paired with renewables — a more future-proof option for homeowners looking to stabilise their bills in the long term.

Planning for a Low-Carbon Future

As the UK moves closer to its 2050 net-zero carbon target, gas boilers may eventually be phased out. From 2025, new-build homes will no longer be fitted with gas boilers as standard, with low-carbon alternatives like heat pumps and electric heating systems expected to take their place. Retrofitting electric heating into existing homes may become more common as infrastructure and incentive schemes expand.

For households considering long-term investment in sustainable living, choosing electric heating now may align better with future regulations, grants, and energy planning. While it may carry higher day-to-day costs at present, the broader benefits — including flexibility, ease of upgrade, and lower carbon output — could outweigh the initial financial difference in years to come.

Final Word

Electric heating can be more expensive than gas in terms of day-to-day running costs, especially for homes that need consistent, whole-house warmth. However, it offers benefits in installation, maintenance, and flexibility — particularly in smaller, newer, or well-insulated homes. Gas remains the cheaper option for most properties currently connected to the grid, but the long-term outlook may shift as energy prices change and renewable technology becomes more accessible. Choosing the right system depends on your property type, lifestyle, and priorities — whether that’s upfront cost, environmental impact, or long-term energy efficiency.