Replacing Storage Heaters with a Heat Pump

Storage heaters were a reasonable solution when they were first installed. Cheap overnight electricity, simple installation, no pipework. But in 2026, they are one of the least efficient and least comfortable ways to heat a home. If you want to replace your storage heaters with a heat pump, it is a big upgrade, but it is also a bigger project than a simple boiler swap. Here is what you need to know.

The Problem with Storage Heaters

Storage heaters work by charging up overnight on cheaper Economy 7 or Economy 10 electricity, storing heat in ceramic bricks, and releasing it during the day. In theory, that sounds fine. In practice:

• You cannot control when the heat comes out. The bricks release heat whether you want it or not. Your home is often too warm in the morning and too cold by evening. You end up using expensive daytime electricity on a plug-in heater to top up.
• Economy 7 is not the deal it used to be. The overnight rate is no longer as cheap relative to the daytime rate. The savings that justified storage heaters 20 years ago have shrunk.
• They do not provide hot water. You still need a separate immersion heater or electric shower, adding to your electricity bill.
• They are bulky and ugly. Each room needs its own unit, taking up wall space and giving off dust.
• Running costs are high. A typical three-bedroom home on storage heaters spends £1,500-£2,500 per year on heating and hot water. That is more than a gas boiler and significantly more than a heat pump.

What a Heat Pump Gives You Instead

Switching from storage heaters to an air source heat pump gives you a proper wet central heating system. That means:

• Controllable heating. A thermostat and TRVs (thermostatic radiator valves) on each radiator. Heat when you want it, at the temperature you want, in the rooms you want.
• Hot water too. A heat pump heats a hot water cylinder, so you get hot water on demand without a separate immersion heater.
• Lower running costs. A heat pump is 300% efficient (COP of 3+). For every 1kW of electricity it uses, it produces 3kW of heat. Storage heaters are 100% efficient at best - 1kW in, 1kW out. That is a threefold reduction in electricity consumption for the same amount of heat.
• Even, comfortable warmth. Radiators distribute heat evenly around each room. No hot spots near the heater and cold spots by the window.

The Big Challenge: You Need Radiators

This is the honest part. A home with storage heaters has no wet heating system. No radiators, no pipework, no hot water cylinder. Installing a heat pump means installing all of that from scratch:

• Radiators in every room.
• Pipework throughout the house to connect them.
• A hot water cylinder (usually 200-300 litres).
• The heat pump unit itself, mounted outside.

This is more work than replacing an existing boiler with a heat pump, where the radiators and pipework are already in place. It means the installation takes longer (typically 4-7 days) and costs more.

Realistic Cost Expectations

Here is what you should budget for:

Component	Typical Cost
Heat pump unit + installation	£8,000-£12,000
Full radiator system + pipework	£3,000-£6,000
Hot water cylinder	£800-£1,500
Total before grant	£12,000-£19,000
Less £7,500 BUS grant	-£7,500
Your cost (0% VAT)	£4,500-£11,500

That is more than a typical boiler-to-heat-pump swap, which usually comes in at £2,500-£8,500 after the grant. The difference is the radiator and pipework installation, which is the extra work unique to storage heater conversions.

The £7,500 Grant Still Applies

The Boiler Upgrade Scheme grant is available regardless of your current heating system. Homes on storage heaters qualify just the same as homes on gas or oil. You do not need to have an existing boiler. The £7,500 comes off the total cost, and with 0% VAT on the entire installation, the out-of-pocket cost is much lower than the headline figures suggest.

Running Cost Savings

Despite the higher upfront cost, the running cost savings are real. Here is a comparison for a three-bedroom home:

System	Annual Heating + Hot Water Cost
Storage heaters + immersion	£1,500-£2,500
Air source heat pump	£800-£1,100
Annual saving	£500-£1,400

The wide range reflects the huge variation in storage heater running costs. Some homes on Economy 7 with modern storage heaters spend less. Many older systems with top-up panel heaters and immersion hot water spend more. Over 20 years, even the lower end of savings adds up to £10,000+.

What the Installation Looks Like

1. Survey. We assess the property, calculate heat loss, plan the radiator layout, and identify the best location for the outdoor unit and hot water cylinder.
2. System design. We specify the heat pump, radiator sizes for each room, pipework routes, and cylinder size.
3. Grant application. We apply for the £7,500 BUS grant through Ofgem.
4. First fix. Pipework is run through the house, radiators are hung, and the cylinder is installed. This is the most disruptive part - expect some lifting of floorboards and drilling through walls. Typically 2-3 days.
5. Heat pump installation. The outdoor unit is mounted on a base, connected to the indoor system, and wired in. 1-2 days.
6. Commissioning. We fill and pressurize the system, test every radiator, set up the controls, and hand over. The old storage heaters can then be removed and disposed of.

When It Makes Sense

• You are fed up with uncontrollable heat. This is the main reason people switch. Storage heaters give you no real control. A heat pump with radiators and a thermostat is a completely different experience.
• You are spending £1,500+ per year on heating. The savings justify the investment, especially with the grant.
• You plan to stay in the property long-term. The payback period is longer than a boiler swap, so it suits homeowners who are staying put for 10+ years.
• You are doing other renovation work. If you are already lifting floors or replastering, adding radiators and pipework is much less disruptive.

When It Might Not

• You are selling the property soon. The upfront cost is high, and you may not recoup it in the sale price, though a better EPC rating does help.
• Very small flat with low heating costs. If you are only spending £600-£800 per year on heating, the payback period stretches beyond 15 years. A more modern electric heating solution might be more cost-effective.
• Listed building with restrictions on internal alterations. Running pipework and hanging radiators in a listed property can require listed building consent. Not impossible, but it adds complexity and cost.

We will always be straight with you during the survey. If a heat pump does not make sense for your situation, we will tell you.