
How Much Can You Save on Heating Bills by Switching to AC Heating?
Wondering if AC heating is worth it? Learn how UK homes are cutting bills and see if your home could be one of them.
RightAir Solutions is a company that specialises in commercial air conditioning services.
AC heating, using systems like reverse cycle air conditioners or air source heat pumps, can lower heating bills by several hundred pounds a year for many UK households. Well insulated homes on smart electricity tariffs can expect to save between £200 and £600 each year, especially when replacing older gas or electric heating systems. The actual amount saved depends on your property type, insulation level, usage habits and current energy tariffs. For many, this shift delivers significantly lower heating bills across the UK.
How much can switching to AC heating really save on your heating bills?
The real science behind savings: efficiency, tariffs and running costs
A simple framework to calculate your own heating bill savings
Maximise your heating efficiency: tariffs, insulation and usage habits
Installation costs and payback time: what you will spend versus save
UK energy bills have been rising sharply, leading many households to reconsider how they heat their homes. While gas boilers remain common, the faster increase in gas prices compared to electricity is pushing more people to look for efficient, cost saving alternatives.
For many, it’s not just about saving money. There’s a growing awareness of energy efficiency and reducing environmental impact. Heating systems like heat pumps or AC units with heating modes offer both financial and ecological advantages.
The Boiler Upgrade Scheme now provides grants for homeowners to switch to alternative heating systems. According to data from Ofgem, the National Grid and the Energy Saving Trust, price volatility and colder winters have made homeowners more conscious of their heating choices. Choosing an efficient home heating system is now a smart and future ready decision.
Modern AC systems aren’t just for cooling. Reverse cycle air conditioners and air source heat pumps are designed to extract warmth from the outside air and move it indoors, even during winter. Think of how a fridge keeps things cold by pulling heat away. These systems do the opposite. They use a refrigerant to absorb warmth from the air outside and transfer it indoors. An inverter maintains a steady indoor temperature without wasting energy.
Wall mounted and integrated units heat spaces efficiently and quietly. Because they use ambient outdoor air and smart inverter controls, they perform much better than outdated electric heaters or traditional boilers.
Pro Tip: If your electricity plan doesn’t include off peak rates, switch before installing AC heating.
Savings from AC heating come down to efficiency. The Coefficient of Performance, or COP, shows how much heat a system can produce per unit of electricity. A COP of 3.0 means it gives you three times as much heat as the electricity it consumes. In contrast, most gas boilers operate at about 90 percent efficiency, which means you lose some of the energy in the process. If you combine an AC system with a flexible electricity tariff like Octopus Agile, and use energy during off peak hours, you could cut your running costs significantly.
Even though electricity costs more per unit, the greater efficiency of heat pumps can still lead to meaningful savings. For example, a gas boiler with a unit cost of £0.07 and 0.9 efficiency results in a real cost of £0.078 per kilowatt hour of heat. An AC heat pump at £0.25 per unit and a COP of 3.0 brings that figure to £0.083. It’s a close comparison, and with a smart tariff, AC heating becomes even more competitive.
To make it easier to understand the difference, here are three examples of efficient home heating conversions. A three bed semi detached house using 15000 kilowatt hours of gas might pay around £1050 each year. By switching to a heat pump with a COP of 3.0 and electricity at £0.25 per kilowatt hour, the cost could drop to between £625 and £700, saving between £350 and £400 annually.
In a two bed flat using electric panel heaters and consuming 8000 kilowatt hours, the annual cost could exceed £2000. Replacing those heaters with an AC heating system could lower the cost to around £660 to £700, delivering savings of more than £1200 each year.
For a four bed detached house with good insulation and underfloor heating, energy use could total 20000 kilowatt hours. Switching to an AC system could reduce annual heating costs by £500 to £600, depending on the home’s usage profile and energy tariff.
AC heating works well for many homes, but there are situations where it may not deliver savings. If you’re on a high fixed electricity tariff or lack access to off peak rates, then the higher cost per unit of electricity can outweigh efficiency gains. Homes with poor insulation will also struggle to retain heat, meaning even the most efficient system will use more energy to maintain comfort.
Smaller properties or homes with minimal heating needs may not benefit enough to justify the upfront investment. If your energy use is already low, the payback time for installation could be too long. Likewise, if you’re currently on a very low gas tariff, the potential for savings from switching to electric heating may not be significant.
Some households choose a mix of systems rather than switching entirely. Installing an AC unit for regular heating while keeping an existing boiler as a backup is a practical middle ground. This hybrid setup offers flexibility and allows homeowners to save money during milder months by using efficient electric heating, while relying on the boiler during very cold weather.
Hybrid systems also reduce the need for major upgrades, such as replacing radiators or pipework, which can help keep installation costs down. For many, this approach is a manageable way to ease into alternative heating systems without committing fully upfront.
You can estimate potential savings from switching using four simple steps. First, check your annual heating usage in kilowatt hours from your energy bill. Next, find out your current gas and electricity rates. Then, apply a typical COP value of 3.0 to the electricity rate. Finally, compare the total annual cost of your current system with the estimated cost of running an AC heating system.
For example, if you use 12000 kilowatt hours annually, your gas cost at £0.07 per unit would total £840. An AC system with a COP of 3.0 would require only 4000 kilowatt hours to produce the same heat, costing £1000 at £0.25 per unit. In this case, the new system would be slightly more expensive unless a better tariff is available, highlighting the importance of choosing the right electricity plan.
To get the best performance from an AC heating system, it’s important to use energy wisely. Opt for a smart meter and a flexible tariff that rewards off peak use. Improve your home’s insulation, including lofts, walls and windows, to reduce heat loss. Use zone heating to target the rooms you actually spend time in, rather than warming the entire house.
Maintaining a steady, comfortable temperature is usually more efficient than switching the system on and off. An annual service check helps keep everything running smoothly and can prevent small issues from turning into costly repairs. Simple habits make a big difference over time.
Avoid relying on a flat rate tariff if a better option is available. Don’t heat rooms unnecessarily or leave windows open while the system is running. Skipping maintenance can also reduce efficiency and increase long term costs.
To keep an AC heating system performing at its best, routine maintenance is essential. Clean or replace filters regularly, especially during periods of heavy use. An annual service should include checking refrigerant levels, inspecting wiring, fans and coils, and looking out for leaks or signs of wear. These checks help prevent performance issues and ensure the system remains energy efficient.
Keeping on top of maintenance doesn’t just save money it also extends the lifespan of the system and protects your investment in efficient home heating.
Modern air source heat pumps are engineered to operate in cold weather, even when outdoor temperatures drop below freezing. They continue to extract heat from the air, although efficiency can decrease slightly in extreme cold. For most UK winters, performance remains reliable, particularly in well insulated homes.
Some households choose to keep a backup heating option, such as a boiler or electric radiator, for peace of mind during cold snaps. This ensures comfort is never compromised, even in more demanding weather conditions.
Installing an AC heating system or air source heat pump usually costs between £7000 and £11000. However, homeowners in England and Wales can apply for the Boiler Upgrade Scheme, which provides grants of up to £7500. With this support, the net cost may fall to around £3500.
Depending on your home’s energy use and the system installed, most people recover their investment in five to twelve years. For those replacing older electric heaters, the savings can be even faster. Businesses like RightAir help homeowners explore these options by connecting them with trusted, MCS certified installers and guiding them through the grant process.
For many UK homes, switching to AC heating brings both financial and environmental benefits, especially when replacing old electric systems or inefficient gas boilers. With the right insulation, a flexible tariff and access to grants, the savings can be substantial.
While it’s not the right solution for every property, AC heating continues to grow in popularity across the UK. For those ready to take the next step, companies like RightAir can provide the advice and support needed to make an informed and confident decision.

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RightAir Solutions
At RightAir Solutions, we provide air conditioning services to domestic and business customers for heating and cooling units. We also supply and fit commercial AC and HVAC services with our insured, qualified and experienced London team of air con engineers.