A heat pump pumps heat from one location/source/medium to another location/output/medium. A heat pump takes low-grade heat energy from the air, ground or water and transforms this heat energy into higher-grade heat energy for use in the property.  What makes a heat pump a viable option is the fact that it outputs more heat energy than it needs to operate. The performance of the heat pump is provided by the "Coefficient of Performance" (CoP) and "Seasonal Coefficient of Performance" (SCoP). The CoP is the instantaneous efficiency and the SCoP is the CoP averaged out over the year. The SCoP is the most relevant to determining how a system will perform. A heat pump with a SCoP of 4 provides 4kW of heat for 1kW of energy used.

The CoP/SCoP is affected by two main key factors: the temperature of the heat source (air/ground/water) and the output water temperature. A relatively high source temperature and low output water temperature will give a high CoP/SCoP because it is working at max efficiency.

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Heat pumps are best suited to well-insulated properties with underfloor heating; this enables a heating flow temperature of around 35°C, which is ideal for efficiency. This does not mean that a property without underfloor heating will be unsuitable for a heat pump installation. The use of oversized radiators and/or fan-assisted radiators will provide effective and efficient heating. Heat pumps used in poorly insulated properties can also be effective when partnered with correctly designed emitters such as radiators, underfloor heating and fan-assisted radiators.

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With the recent volatility in energy prices, it is difficult to provide a consistent analysis of how the various sources of energy for heating compare. The Nottingham Energy Partnership website provides monthly comparisons of energy cost. 

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Based on information from July 2022, the cost of heating/cooling in order of least cost: