What is cheaper, heating with gas or a heat pump?

When homeowners consider their energy bills, sustainability, and comfort, the question often arises: what's cheaper, heating with gas or a heat pump? The answer depends on various factors, such as energy prices, home insulation, type of heat pump , and subsidies.

In this article we explain in detail how the costs relate to each other and what you should take into account.

Gas vs. Heat Pump: The Basics

To understand which heating method is cheaper, we first need to look at the basics of both systems. Both natural gas heating and a heat pump provide a comfortable indoor climate, but they operate in completely different ways.

Heating with gas

Gas heating usually uses a central heating boiler that burns natural gas. The heat from this combustion is used to heat water, which then circulates through radiators or underfloor heating.

Features of gas heating:

• Works quickly and efficiently, even at lower outdoor temperatures.
  

• Gas infrastructure is available in almost all of the Netherlands.
  

• Dependent on fossil fuels, which leads to higher CO₂ emissions.
  

• Maintenance and installation are relatively cheap.
  
  

Heating with a heat pump

A heat pump uses electricity to extract heat from the environment: from the outside air, the ground, or ventilation air. This heat is then upgraded to a usable level for heating and hot water.

Features of a heat pump:

• Highly energy-efficient: 3 to 5 kWh of heat can be obtained from 1 kWh of electricity.
  

• More sustainable, because less or no gas is used.
  

• Requires good insulation of the home for optimal performance.
  

• Higher investment costs, but often attractive subsidies.
  
  

Important difference

The biggest difference is in fuel vs. electricity :

• Gas is relatively easy to use, but is becoming more expensive and less sustainable.
  

• A heat pump uses more electricity, but achieves a much higher efficiency and is ready for a gas-free future.

Costs of heating with gas

Gas heating is still the standard for many Dutch households. However, costs have risen sharply in recent years and are highly dependent on fluctuating gas prices and taxes. To get a good idea, it's important to consider the gas price per cubic meter, the boiler's efficiency, and average consumption .

1. Gas price per m³

The gas price consists of:

• Delivery costs (price per m³ of gas, depending on energy supplier)
  

• Energy tax and sustainable energy surcharge (ODE)
  

• Network costs
  
  

On average, the price in 2025 will be around €1.20 per m³ , but this price can rise or fall due to global energy developments and government surcharges.

2. Efficiency of the central heating boiler

Most households use a high - efficiency (HR) boiler. Such a boiler achieves an efficiency of 90 to 95% . This means that almost all the energy from the gas is converted into usable heat. Older boilers often have lower efficiency, resulting in higher costs.

3. Average gas consumption for heating

Gas consumption depends on:

• Size and insulation of the house
  

• Heating behavior of residents
  

• Presence of underfloor heating or radiators
  
  

On average, a household in the Netherlands consumes:

• 1,200 – 1,600 m³ of gas per year for heating
  

• Approximately 250 – 400 m³ of gas per year for hot water
  
  

Calculation example:
At a gas price of €1.20 per m³ and a consumption of 1,500 m³ of gas per year, the annual gas costs for heating amount to approximately €1,800 .

4. Additional costs for gas heating

In addition to actual gas consumption, there are some other cost items:

• Boiler maintenance : €100 – €150 per year
  

• Depreciation of a central heating boiler : a new HR boiler costs an average of €1,500 – €3,000 and lasts 12-15 years
  

• Possible replacement or repair in case of malfunction
  
  

Summary of gas heating costs

Although a central heating boiler is relatively inexpensive to purchase, annual running costs can rise significantly due to high gas prices . Poorly insulated homes, in particular, use a lot of fuel, resulting in high energy bills.

Costs of a heat pump

The cost of a heat pump depends on the type:

1. Air-to-water heat pump (most popular, relatively affordable)
   

2. Hybrid heat pump (works with your central heating boiler, lower investment)
   

3. Ground source heat pump (expensive to purchase, but very efficient)
   
   

Consumption and electricity costs

A heat pump uses electricity. On average, a household needs an additional 3,000–5,000 kWh of electricity per year.

• Electricity price: approx. €0.40 per kWh (depending on contract and rate).
  

• Annual costs: 4,000 kWh × €0.40 = €1,600 per year .
  
  

Note: Many heat pumps have a COP (Coefficient of Performance) of 3 to 5. This means that for every 1 kWh of electricity, 3-5 kWh of heat are generated. This makes them much more efficient than a central heating boiler.

Investment costs

When choosing between gas-fired or heat pump heating, the investment level plays a significant role. While a central heating boiler is relatively inexpensive to purchase, the cost of a heat pump is considerably higher. Nevertheless, this should be considered a long-term investment , with subsidies and energy savings also factored in.

1. Costs of a central heating boiler

A new HR boiler costs on average:

• €1,500 – €3,000 including installation
  

• Lifespan: 12 – 15 years
  

• Annual maintenance: €100 – €150
  
  

2. Costs of a hybrid heat pump

A hybrid heat pump works together with a central heating boiler and thus provides an interim solution.

• €4,000 – €6,000 including installation
  

• ISDE subsidy: €1,500 – €2,500
  

• Net investment: €2,500 – €4,500
  

• Lifespan: 12 – 15 years
  
  

3. Costs of an air-to-water heat pump

The most popular option for completely gas-free heating.

• €8,000 – €12,000 including installation
  

• ISDE subsidy: €2,500 – €4,000
  

• Net investment: €6,000 – €9,000
  

• Lifespan: 15 – 20 years
  
  

Advantage: completely independent of gas and lower energy bills.
Disadvantage: high purchase price and requires good insulation.

4. Costs of a ground source heat pump

The most efficient, but also most expensive option.

• €15,000 – €25,000 including installation and ground drilling
  

• ISDE subsidy: €4,000 – €6,000
  

• Net investment: €11,000 – €19,000
  

• Lifespan: 20 – 25 years
  
  

Advantage: very high efficiency (COP 4-5), stable performance, even in winter.
Disadvantage: very high investment and not possible in every home.

Subsidies and benefits

The government encourages the switch to heat pumps through the ISDE subsidy . Depending on the type of heat pump, this benefit can amount to several thousand euros.

In addition, you will save money in the long term because:

• Electricity is being generated in an increasingly greener way (lower CO₂ emissions).
  

• Gas prices likely to rise further.
  

• Some grid operators and municipalities offer additional subsidies or loans.
  
  

What is really cheaper?

• In the short term : a central heating boiler is cheaper to purchase, but with high gas prices it can work out to be more expensive every year.
  

• In the long term : a heat pump is generally more cost-effective, especially with subsidies and if the home is well insulated.
  

• Hybrid heat pump : often the perfect compromise. Lower investment, but immediate savings on gas.
  
  

Overview of investment costs

The initial costs of heating systems vary widely. While a central heating boiler is relatively inexpensive, a heat pump requires a larger investment. However, thanks to subsidies and lower energy costs, a heat pump can be more cost-effective in the long run.

Below is an overview of the average investment costs in 2025:

Important to know

• The subsidy amounts (ISDE) differ per type and capacity of the heat pump.
  

• Installation costs are included, but may be higher for difficult installations or additional adjustments in the home.
  

• Good insulation is necessary to get optimal efficiency from a heat pump.
  
  

In summary:

• A central heating boiler requires the lowest investment, but does not offer any subsidy benefits and has higher annual consumption costs.
  

• A hybrid heat pump is a relatively affordable step towards sustainability.
  

• A full heat pump is more expensive to purchase, but attractive due to subsidies, lower energy bills and a longer lifespan.

Conclusion: what do you choose?

The question “What is cheaper, heating with gas or a heat pump?” cannot be answered unambiguously with one amount.

• Do you have an older, poorly insulated home ? Gas may be temporarily cheaper, unless you invest heavily in insulation.
  

• Do you live in a well-insulated house or are you willing to invest in sustainability? Then a heat pump is more cost-effective and environmentally friendly in the long run .
  

• For those in doubt: a hybrid heat pump offers an affordable transition without completely saying goodbye to gas.
  
  

Frequently Asked Questions (FAQ)

1. Is a heat pump always cheaper than gas?

Not always. It depends on energy prices, subsidies, and your home. In the long run, it often is.

2. How quickly do you earn back the cost of a heat pump?

On average between 7 and 12 years , depending on the type of heat pump and energy prices.

3. Can I combine a heat pump with solar panels?

Yes, that's even ideal. Solar panels lower your electricity costs, making the heat pump even more affordable.

4. What if gas prices drop again?

Although prices can fluctuate, gas is expected to remain expensive in the long term due to scarcity and taxes.