Energy Cost Comparison Calculator
Compare energy costs across different sources and tariffs. See annual savings from switching providers or moving to solar, heat pumps, or EV charging.
Last updated: March 2026
Solar Annual Savings
£$1,800
Heat Pump Annual Savings
£$1,440
Insulation Annual Savings
£$360
Combined Annual Savings
£$2,160
How You Compare
Your household energy savings is better than 50% of UK households.
Industry typical: £1,200-£3,000/yr
Source: Ofgem Household Data 2025
💡 What This Means
- ✅ £2160/year in combined savings is solid. Solar provides the biggest single saving for most households.
- ☀️ Solar offers the biggest saving at £1800/year — consider installing panels first if you can only do one upgrade.
- 💡 Insulation alone saves £360/year — it's often the cheapest improvement with the fastest payback.
Sign up to save your results
Create a free account to save calculations, track trends, and download PDF reports.
Embed this calculator on your website
Add the Energy Cost Comparison Calculator to your site. Capture leads, customise branding, and track engagement.
What is Energy Cost Comparison?
Energy cost comparison evaluates the annual running costs of different heating, cooling, and energy systems to identify the most cost-effective option. This includes comparing gas vs electric heating, heat pumps vs boilers, and the impact of insulation improvements. For solar-specific analysis, see the Solar Savings Calculator.
The Formula
Annual Savings = Current Annual Energy Bill − Alternative Annual Cost
Worked Example
A household currently spends £1,800/year on gas heating. They're considering an air source heat pump that would cost £900/year to run, plus a £200/year insulation improvement that reduces both options by 20%.
- Current cost after insulation = £1,800 × 0.80 = £1,440
- Heat pump cost after insulation = £900 × 0.80 = £720
- Annual savings = £1,440 − £720 = £720
📌 Switching to a heat pump with insulation saves £720/year — the heat pump installation cost of £8,000-12,000 pays back in 11-17 years.
Why This Matters
Rising energy costs
UK energy bills have increased 50-100% since 2021. Comparing alternatives now protects against future price rises and identifies the most resilient long-term strategy for your home.
Government incentives
The Boiler Upgrade Scheme offers £7,500 towards heat pump installation, dramatically improving payback periods. Factor grants into your comparison for the true net cost.
Common Mistakes
❌ Comparing running costs only
A heat pump may save £700/year in running costs but requires £10,000 upfront installation. Include capital costs and calculate payback period for a fair comparison — don't just compare monthly bills.
❌ Ignoring property suitability
Heat pumps work best in well-insulated homes with underfloor heating or large radiators. Installing one in a poorly insulated Victorian terrace without upgrades will deliver higher running costs than promised.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Annual bill per household | Below £1,200 | £1,200-1,800 | Above £2,200 |
| Savings from switching | 30%+ | 15-30% | Below 10% |
Related Tools
Solar Savings Calculator
Calculate annual savings from solar panels based on system size, electricity usage, tariff rate, and export payments under the Smart Export Guarantee.
Use free →EnergySolar ROI Calculator
Calculate the return on investment for solar panels including installation costs, energy savings, export income, and payback period over 25 years.
Use free →Real EstateHome Affordability Calculator
Estimate how much home you can afford based on your income, deposit, debts, and monthly expenses. See your maximum property price and mortgage amount.
Use free →InsuranceHome Insurance Calculator
Estimate home insurance premiums based on property value, location, and cover type. Compare buildings and contents insurance costs.
Use free →Frequently Asked Questions
Your website is leaving leads on the table
Companies using interactive content see 3-5× more conversions than static forms. Start building yours in under 5 minutes.
No code required · 100+ templates · Free forever · Free forever