Which is cheaper: gas or electric?

Key takeaways

• Gas is often cheaper per kWh than electricity, but the full bill matters.

• If you already have a modern gas boiler, gas heating may cost less to run than direct electric heating.

• Gas cooking can be cheaper, but small electric appliances are often more efficient for quick meals.

• Good insulation helps every heating system work better.

Gas vs electricity: what’s the difference?

This is worth thinking about when you are heating your home, cooking food and trying to keep bills down.

Gas is usually used for boilers. These heat water for radiators, taps and showers. In some homes, gas is also used for cookers and ovens.

Electricity can power almost everything in the home. That includes lighting, appliances and electric heating.

It is more versatile, and it is available to almost every home.

Is gas cheaper than electricity?

Gas is usually cheaper than electricity on a per-unit basis. But that does not automatically make it the cheaper overall choice.

Your bill also depends on standing charges, how much energy you use, and whether you are on a standard tariff or a fixed deal.

Electricity can also be cheaper at off-peak times if you are on a multi-rate tariff such as Economy 7 or Economy 10. Gas does not have an off-peak version, so the rate is the same whenever you use it.

Is it cheaper to heat my home with gas or electric?

If you already have a modern gas boiler, gas central heating may be cheaper to run than a direct electric heating system.

But the answer depends on the system you already have, how much insulation your home has, and whether you would need to pay to install a new setup.

Electric heating has improved a lot in recent years. For some homes, it may be more cost effective to keep an electric system rather than pay for a full gas installation.

Small changes can also make a difference. Turning your thermostat down by even one degree and only heating the rooms you use can help reduce costs, whatever system you have.

Is it cheaper to cook with gas or electricity?

Gas ovens and hobs can be cheaper to run than electric ones.

But that is not the whole story. Electric appliances such as microwaves and air fryers often do the same job more quickly, which can make them more efficient for everyday cooking.

If you use an electric oven, a fan setting can help spread heat more evenly.

Batch cooking is another easy way to save money, because you use the oven less often.

Induction hobs are also a strong option. They are quick, responsive and easy to clean.

Gas fires, electric heaters and wood burners

Electric heaters are often portable, simple to use and easy to switch off when you no longer need them.

They can be a practical option for occasional use, even if they are not always the cheapest way to heat a whole home.

Gas fires can have lower running costs than some alternatives, but installation and maintenance can be expensive.

Wood burners may look attractive, but they can be costly to run, especially in colder weather.

They may also be restricted in some areas because of air quality concerns.

What’s the greenest way to heat my home?

If you are looking for a lower-carbon way to heat your home, heat pumps are one of the main options to consider.

They run on electricity and move heat from the air or ground into your home. They are generally much more efficient than direct electric heating.

The Boiler Upgrade Scheme currently offers grants of £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump, £5,000 towards a biomass boiler and £2,500 towards an air-to-air heat pump in England and Wales.

Whatever system you choose, insulation is crucial. A well-insulated home keeps heat in for longer, which helps any heating system work more efficiently and can lower bills over time.

You may also be able to choose a green energy tariff from your supplier. These tariffs usually mean your supplier matches your usage with electricity from renewable sources such as wind or solar.

Switch suppliers with MoneySuperMarket

Switching energy supplier can still help some households, especially if you can find a fixed-rate deal that works for your usage.

But it is important to compare the unit rate, standing charge and any exit fees before you switch.

In the past, switching was often the easiest way to save money on energy bills. That has not always been true in recent years, because market conditions have made deals harder to find.

Even so, it is still worth checking what is available, particularly if you want the security of a fixed price for a set period.