June 16, 2025, 10:35 am | Read time: 4 minutes
In most new buildings, heat pumps are already mandatory—and for good reason. New constructions can be more easily aligned with this heating technology. Plus, as a recent Verivox analysis shows, it also saves a significant amount on energy costs.
Even though it’s a current political hot topic, the rise of the heat pump seems unstoppable. While many homeowners want to stick with their gas or oil heating systems—which is possible under certain conditions—new heating systems from 2024 onward must be able to operate with 65 percent renewable energy according to the Building Energy Act (GEG). New constructions are generally equipped with heat pumps or other more environmentally friendly heating systems.
Heating Costs with Heat Pumps Up to 30 Percent Cheaper Than Gas Heating
A recent analysis by Verivox shows that a heat pump, when operating efficiently, heats about one-third cheaper than a gas heating system. The electricity costs for the heat pump are around 30 percent lower than the heating costs with natural gas. However, this is only true if the heat pump runs under optimal conditions—which is not always the case.
The specific figures from the Verivox analysis: Heating a single-family home with an annual consumption of 20,000 kilowatt-hours (kWh) of natural gas currently costs new customers around 1,774 euros per year. This corresponds to a price of 8.87 cents per kWh.
In contrast, operating an efficiently running heat pump (annual performance factor of 4) requires a total of 5,000 kWh of heat pump electricity to provide 20,000 kWh of heat. Currently, the average cost for new customers is 1,241 euros.
Note: Those who operate a heat pump can take advantage of special electricity tariffs—known as heat pump electricity. This is on average 20 percent cheaper compared to regular household electricity.
How Did Prices Develop in 2023?
Thorsten Storck, energy expert at Verivox, explains in a press release: “The average working price of the cheapest available offers for heat pumps is currently around 25 cents per kilowatt-hour.” At the beginning of the year, it was over 50 cents per kilowatt-hour. The price for heat pump electricity has since halved. Gas prices for new customers were also almost twice as high at the beginning of the year, according to the expert.
By the way: Recently, Oxford scientists found that a heat pump heats more efficiently than a gas or oil heating system even at low temperatures.
Also interesting: How long do heat pumps really last?
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And What If the Heat Pump Doesn’t Run Efficiently?
The figures from Verivox are only valid if the heat pump operates under optimal conditions. The experts assumed an annual performance factor (APF) of 4. This metric indicates how efficiently the heating systems operate over a year. Particularly efficient systems have an APF between 3 and 4.5. Causes for lower efficiency can include poor insulation or unsuitable radiators.
If the heat pump operates less efficiently, for example, with an annual performance factor of 2.7, heating costs increase by about 4 percent compared to gas heating. At current new customer prices, the total cost for the required 7,500 kWh of electricity amounts to 1,837 euros. Since the heat pump with a lower annual performance factor does not run as efficiently, more electricity is required here.
Related: Is a heat pump suitable for my house? A simple test shows it
“A gas boiler is significantly cheaper to purchase than a heat pump. However, the price ranges for the different heating systems are large,” summarizes Thorsten Storck. The specific costs would depend heavily on the individual situation and the structural conditions.
The Analysis Also Has Its Weaknesses
“As the study shows, a heat pump saves significant energy costs under optimal conditions. However, it did not consider the costs incurred during purchase. In many existing buildings, extensive modernization is first necessary for the heat pump to be truly more efficient than a gas heating system. In the long run, it could be worthwhile—because gas prices are certainly not going to get cheaper in the future. In any case, it is worth consulting an energy advisor who also considers the individual circumstances.”