Are Storage Heaters Expensive to Run?

Annual running costs on Economy 7 compared to gas and other electric heating.

Last reviewed: 2026-06-27 • Reading time: 4 minutes

Storage heaters on Economy 7 cost £900–£1,400/year for a 3-bedroom home (vs £720/year for gas central heating). They're cheaper than electric radiators on standard tariffs (£1,500–£2,200/year) but more expensive than gas. Modern high-retention storage heaters cut costs by 20–30% vs old models.

Annual Running Costs (2026 UK Rates)

Heating System	Annual Cost (3-bed)	Tariff
Storage heaters (modern)	£900–£1,200	Economy 7 (9p off-peak, 28p peak)
Storage heaters (old)	£1,200–£1,400	Economy 7 (poor insulation = more waste)
Electric radiators	£1,500–£2,200	Standard (24p/kWh)
Gas central heating	£720	Gas (6p/kWh)

Why Storage Heaters Cost More Than Gas

Even with the cheaper Economy 7 off-peak rate (9p/kWh), electricity is 1.5× more expensive than gas (6p/kWh) per kWh of heat delivered.

For a 3-bedroom home using 12,000 kWh/year of heat:

Storage heaters (80% off-peak): 9,600 kWh × 9p + 2,400 kWh × 28p = £864 + £672 = ~£1,100/year
Gas central heating (90% efficiency): 13,333 kWh gas × 6p = £800/year ÷ 0.9 = ~£720/year

Storage heaters cost £180–£680 more per year than gas, depending on model efficiency and how well you manage the tariff.

Reducing Storage Heater Running Costs

1. Replace old storage heaters with modern high-heat-retention models. Better insulation and fans cut running costs by £150–£300/year.

2. Optimise input settings. Don't overcharge on mild days. Use weather forecasts to adjust the input dial (or programme the timer).

3. Minimise peak-rate electricity use. The Economy 7 peak rate (28p/kWh) is expensive. Use timers for washing machines, dishwashers, and EV chargers to shift usage to off-peak hours.

4. Improve insulation. Loft, wall, and floor insulation reduce heat demand, cutting both storage heater charging needs and whole-house running costs.

When Storage Heaters Make Financial Sense

You have no gas connection (installation would cost £1,000+)
You're already on Economy 7 for another reason (EV charging, heat pump)
Upfront cost is a priority (storage heaters £1,800–£3,000 vs gas boiler + radiators £4,000–£6,000)
You have modern high-retention storage heaters (running costs at the lower end of the range)

Full guide: Storage Heaters →

Last reviewed: 2026-06-27