Gas vs. Electric Heating: Which Is Cheaper in 2025?

Gas vs. Electric Heating: Which Is Cheaper in 2025?

Gas vs. Electric Heating - Which Is Cheaper

Table of Contents

It is a bit overwhelming and confusing to heat your home in 2025. Increasing bills, ever-shifting government incentives, and emerging technology offerings have many people asking themselves, is it better to remain with gas or should we jump in and go electric? It is no longer an issue of comfort when talking about the electric heating vs. gas issue; it is all about future-proofing your house without necessarily messing with your wallet. At the time we are talking, the proportion of households in the UK not on the main gas grid is approximately 15% with people resorting to electric boilers as a means of warming up. They are smooth, efficient and are more friendly to the planet, and yet, they have higher running costs that could give you a second thought. Gas boilers have proven to be a reliable option over the decades, as people have got lower bills and are considered reliable.

The electric vs gas heating debate is warming up more rapidly than ever with the impending UK gas boiler ban. Which one can best fit your home? It is a question of cost-benefit, productivity, and your future intentions. It is not a simple choice, and locating an honest and competent professional will only increase the stress. Worry not we are here to make life easy. Get in touch with us so as to learn more about heating grants and ECO4 grants.

Understanding Key Differences: Electric vs. Gas Boiler

The difference between the boilers lies in their source. Electric boilers consume electricity to produce heat, whereas gas-based boilers burn natural gas. Read on to understand what sets them apart:

1. Cost: Electric boiler and gas boiler running expenses may diverge greatly. As of April ’25, the energy price category for electricity is 27p/kWh, whereas it is 7p/kWh for gas.

2. Efficiency & Performance: Electric boilers achieve an efficiency rating of up to 100% at the point of use, whereas gas boilers reach 90-95%. You can refer to Home Heating Systems: Compare gas, electric, and renewables to know more.

3. Environmental Impact: Electric boilers allow zero direct emissions during operations. However, their impact on our environment is still debatable since the electricity is produced using fossil fuels. Gas boilers release direct carbon as a byproduct since they burn natural gas.

4. Maintenance & Life: The interior setting of gas boilers can be a little complex and has more moving parts than electric boilers. This explains that the gas-based boilers are prone to easy breakdowns, have a shorter lifespan, and require annual servicing.

5. Safety Considerations: In a situation of breaks, irregular maintenance, and poor ventilation, gas boilers tend to cause a risk of carbon monoxide poisoning, whereas electric boilers are safer to operate in such cases.

6. Installation Needs: Gas boilers, unlike electric ones, need a flue connection and a gas supply. Electric boilers only require a mains power supply, as they rely on the grid.

Check out our comprehensive guide: Electric Boiler or Gas Boiler: The Ultimate UK Homeowner’s Guide 2025

Electric Boiler vs Gas Boiler Running Costs

Metric

Electric Boiler

Gas Boiler

Cost per kWh

27p

6.99p

Annual running expense

£1,700

£890

Monthly expense

£286

£75

Maintenance expense

No servicing

£60-£110/annually

 

Gas boilers are cheaper to run than electric boilers. Running an A-rated gas boiler varies between £620 and £1260 per year, while it’s around £1700 for electric boilers for an average house. 


When thinking about electric vs gas boiler running costs, aspects like current fuel prices, maintenance costs, consumption patterns, and property size play a key role. Due to high electricity prices, electric boiler running costs can be cut by pairing with solar panels or using off-peak tariffs, such as Economy 7. You can always think about the Boiler Upgrade Scheme or ECO4.

Gas Boiler vs Electric Boiler Efficiency

Factor

Gas Boilers

Electric Boilers

Energy Source

Natural gas is piped directly to homes

Electricity is generated from fossil fuels, and transmitted to homes via the grid network.  

Generation Efficiency

90-95%

30-35%

Transmission Losses

-2%

7-12% 

Carbon Intensity

0.216kg CO/kWh

0.519 kg CO/kWh

Fuel Factor

1.00 Baseline

1.55

Point of Use Efficiency

90-95%

99-100%

Electric boilers have been touted as highly efficient at the point of use, which translates that, when it is running, all the electricity is converted into heat. However, looking at the entire electricity supply chain, this encompasses generation, transmission, and distribution- electric boilers will have a low ErP rating, utilising approximately D.

This kind of anomaly in efficiency is brought about by various factors:

Generation of electricity: Fossil fuel plants can generate electricity with a range of between 30-35 percent efficiency. The reason behind this is that as much as 50-70 percent of the original energy is lost as heat during this level. Ga, on the other hand, is natural and has 90-95 percent efficiency when conveyed to houses.

Transmission & Distribution: While the generated electricity makes its way to the substation, it faces 2-5% losses due to resistance in high-voltage lines. When it reaches homes through distribution lines, 5-10% of the energy is lost due to resistance in cables and transformers.

Grid Carbon Intensity: In the United Kingdom, grid electricity emits ~0.519 g CO₂/kWh, more than double natural gas at 0.216 kg CO₂/kWh. Although electric boilers offer low-carbon heating at home, their indirect emissions improve their overall environmental efficiency. 

As a result of these losses, only 30-45% of fossil fuel energy becomes electricity, resulting in lower system efficiency. However, modern condensing boilers have a 90-95% efficiency rate at the point of use. Their overall efficiency is rated 80-90%. This is because gas boilers are less complicated and don’t entail power plants or wires. 

Gas and Electric Boiler Installation Expenses

Installing a gas combi boiler costs between £3800 and £3250 for an electric unit. This entails the price of a new boiler, labor expenses, and additional elements. The installation time for gas boilers is 1-2 days, whereas installing an electric boiler takes a day.

Boiler Type

Supply Cost

Cost Installation 

Average Pric Installation

Gas

£600 – £3,300

£1,600 – £5,300

£3,800

Electric

£500 – £3,000

£1,500 – £5,000

£3250

The installation depends on various aspects:

  • Boiler Type & Size: Gas-combi boilers are the most common boilers installed in the UK since they bring heating and hot water from a single unit. For large-scale properties, a system or regular boiler might be an ideal choice, but they come with different water storage units, which increases supply and installation expense. The average cost to install a regular boiler or a system boiler is £3550 and £3300. 
  • Installation Complexity: Gas boilers are installed by registered engineers or professionals, and the actual process demands a flue (£200-£700) or condensate pipes (£90-£130) and installation and gas line checks (£250-£400), posing additional costs. 

However, electric boilers don’t need flue or gas line changes. The majority of properties need dedicated high-amperage circuits to handle the electrical load. In the case of high-output boilers, a three-phase power supply is required, which is not typical in residential properties and is expensive to install.

  • Additional Component: Magnetic filters could be installed to keep boilers safe from wear and tear, which can cost you between £100 and £300. A smart thermostat is another upgrade that improves the overall heating efficiency and potentially helps you save on energy bills. It is integral to remember that these expenses are just approximate; therefore, consulting a Gas Safe engineer is necessary to understand the actual cost of a new boiler.

Home Energy Guide can do the legwork for you and help you fill out the form and check your eligibility for heating grants. When we discuss electric vs. gas heating, it is important to understand that electric boilers boast a 15-25-year life, unlike gas boilers with their lifespan of 10-15 years, thanks to their simpler construction. They mean no carbon monoxide leak risks since they don’t burn any fuel. 

Electric boilers can be paired up with solar panel systems and heat pumps to lower running costs and reliance on the grid, but whether it’s possible for your home or not, it should be discussed with a trusted installer or professional.

Final Thought

Gas and electric heating in 2025 is more than crunching numbers; it is about striking a balance between cost, long-term plans, and convenience. Gas boilers, however, are cheaper to operate and help keep energy bills lower, but they do come with high maintenance expenses and face future restrictions under the UK’s boiler phase-out. Electric boilers, on the other hand, are safer, simpler, and produce no on-site emissions, though their higher running costs can feel daunting without help from grants, off-peak tariffs, or other incentives. Your choice depends on both your current budget and your future priorities whether that’s saving on energy, upgrading your property, or reducing your environmental footprint.

Share this blog via

Direct Link

[copy_url_button]
OR
Facebook
LinkedIn
Pinterest
Twitter
WhatsApp