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Switching to AC from Gas: Save on UK Energy Bills

Switching to AC from Gas: Save on UK Energy Bills

As UK energy prices rise, homeowners are looking at clever substitutes for conventional heating systems. One appealing option is to switch from gas heating to air conditioning (AC) systems equipped with heat pump technology. This change not only offers potential economic savings, but it also coincides with environmental sustainability goals.

Gas vs. Electricity: Understanding the Costs

Under the current price cap, the average unit rates and standing charges are:

Energy Type

Unit Rate

Standing Charge

Electricity

27.03p per kWh

53.80p per day

Gas

6.99p per kWh

32.67p per day

The entire effectiveness of the heating system is a major factor in determining actual prices, even though gas seems less expensive per unit.

Rising Energy Costs in the UK

​The energy price cap was raised by 6.4% as of April 1, 2025, by the UK’s energy regulator, Ofgem. This means that the average household’s yearly energy bill will increase by £111, from £1,738 to £1,849.

This marks the third consecutive quarterly increase, with the cap rising by 10% in October 2024 and 1% in January 2025. ​

The primary driver of this increase is a surge in wholesale energy prices, which account for approximately 78% of the rise. Additional factors include a slight uptick in policy costs and associated inflationary pressures. ​

In light of these escalating costs, homeowners are increasingly turning to energy-efficient solutions, including modern air conditioning installation, to better regulate indoor temperatures year-round while reducing reliance on cost-intensive traditional systems. Investing in efficient technologies not only offers financial relief but also supports long-term sustainability goals.

Cost Comparison: AC with Heat Pumps vs. Gas Heating

Air Conditioning (Heating Mode): Operating a split AC unit in heating mode typically costs around 10p to 15p per hour. Their high efficiency makes them more economical for heating smaller spaces or for zonal heating, especially in well-insulated homes or during mild winters. For those seeking reliable, energy-efficient performance, solutions like Mitsubishi Air Conditioning London offer advanced systems designed to optimise comfort while keeping running costs manageable.

Gas Central Heating: Gas heating costs approximately 5p to 10p per hour per radiator. However, heating the entire home, including unused rooms, can lead to higher overall expenses.

Growing Adoption in the UK

The United Kingdom’s air conditioner market is poised for substantial growth, with projections indicating a compound annual growth rate (CAGR) of 6.3% from 2025 to 2034. This anticipated expansion reflects a significant shift in the adoption of air conditioning systems across UK households and commercial spaces.​

Several factors contribute to this increase:

  • Rising Temperatures: The UK’s annual mean temperature has been on the rise, reaching a record high of 03 degrees Celsius. This climate change has heightened the demand for effective cooling solutions in residential and commercial settings.​
  • Urbanisation and Construction Boom: The steady increase in new housing developments and urban expansion has led to a greater incorporation of modern HVAC systems, including air conditioners, to enhance indoor comfort and air quality. ​
  • Technological Advancements: Innovations in air conditioning technology, such as energy-efficient systems and smart home integration, have made these units more appealing to consumers seeking both comfort and sustainability.​

The market’s growth is also supported by the increasing awareness of the benefits of air conditioning, including improved indoor air quality, better sleep, and enhanced productivity in workplaces. As the UK continues to experience warmer summers and a national push towards sustainability, the demand for energy-efficient climate control is rising. This shift not only fuels the adoption of advanced air conditioning systems but also promotes complementary energy-efficient heating solutions, creating a holistic approach to year-round indoor comfort. These trends are expected to align with the projected market expansion over the next decade, reflecting evolving consumer priorities and regulatory momentum in favour of sustainable living.

Conclusion

Transitioning from traditional gas heating to modern air conditioning systems with heat pump technology presents a viable strategy for UK homeowners to reduce energy costs and environmental impact. As the market for these systems grows, now is an opportune time to consider making the switch.​

Considering a switch to an energy-efficient AC system? Contact Hamilton Air Conditioning today for expert advice, professional installation, and maintenance services tailored to your needs. Our team is ready to assist you in making an informed and beneficial transition to a more sustainable and cost-effective heating solution.

Matthew Connery
By: Matthew Connery

Matthew Connery is the Director of Hamilton Air Conditioning in London. He is a skilled Business Strategist who delivers energy-efficient and cost-saving solutions to commercial and domestic clients from leading air conditioning brands. 

Apr 11 2025