Levelised cost of heat LCOH
"Levelised cost of heat (LCOH) is a metric which describes the discounted lifetime cost of the purchase, installation, maintenance, and operation of a heating appliance expressed in pence per kilowatt hour (p/kWh) of heat. Sensitivity analysis has been conducted to understand how the LCOH results vary based on factors including system efficiency, energy price, load shifting, and installation year."
"To illustrate how heating costs vary across different building types, three housing archetypes have been defined for cost analysis: a smaller mid-terrace on gas house, a larger detached on gas house, and a larger detached off gas house. This analysis is based on the best technical evidence the Department currently has available."
"However, as the picture on these technologies is regularly evolving and given the modelling simplifications involved in assessing the costs of these technologies, the results should be considered illustrative. The cost analysis of all low carbon heating systems has been carried out using the Department’s National Buildings Model (NBM), which simulates building energy use, costs, and emissions under different policy incentives."
"LCOH results for heating systems under scope of this analysis illustrate that low temperature air source heat pumps (LTASHP) – across all three defined housing archetypes – have the lowest LCOH based on the central modelling assumptions, mainly driven by their high efficiency. In comparison, direct electric (DE) heating systems including electric boilers, infrared panel heaters, and convective panel heaters, have the highest LCOH across the three housing archetypes. This is a result of assumed lower efficiencies compared to heat pump technologies and lack of thermal storage capability, meaning these systems are unable to take advantage of cheaper off-peak electricity prices. While the LCOH results are specific to the illustrative archetypes defined in this document, this should not be interpreted as reflecting the wider housing stock"
UK Government Publication "Analytical Note on Alternative Low Carbon Heating Technology Costs" November 2025
[edit] Related articles on Designing Buildings
- Articles about electricity.
- Coefficient of Performance CoP
- Economy 7.
- Electrical consumption.
- Electrical energy.
- Electrical power.
- Electrical safety.
- Electricity bill.
- Energy price crisis: ECA calls for energy levy reform.
- Energy cost.
- Energy tariffs.
- Glossary of electrical terms.
- Green deal
- Heating fuel.
- Off-peak electricity.
- Room data sheet.
- Seasonal energy efficiency ratio..
- Seasonal performance factor.
- What is COP and EER?
Featured articles and news
A case study and a warning to would-be developers
Creating four dwellings for people to come home to... after half a century of doing this job, why, oh why, is it so difficult?
Reform of the fire engineering profession
Fire Engineers Advisory Panel: Authoritative Statement, reactions and next steps.
Restoration and renewal of the Palace of Westminster
A complex project of cultural significance from full decant to EMI, opportunities and a potential a way forward.
Apprenticeships and the responsibility we share
Perspectives from the CIOB President as National Apprentice Week comes to a close.
The first line of defence against rain, wind and snow.
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this...
National Apprenticeship Week 2026, 9-15 Feb
Shining a light on the positive impacts for businesses, their apprentices and the wider economy alike.
Applications and benefits of acoustic flooring
From commercial to retail.
From solid to sprung and ribbed to raised.
Strengthening industry collaboration in Hong Kong
Hong Kong Institute of Construction and The Chartered Institute of Building sign Memorandum of Understanding.
A detailed description from the experts at Cornish Lime.
IHBC planning for growth with corporate plan development
Grow with the Institute by volunteering and CP25 consultation.
Connecting ambition and action for designers and specifiers.
Electrical skills gap deepens as apprenticeship starts fall despite surging demand says ECA.
Built environment bodies deepen joint action on EDI
B.E.Inclusive initiative agree next phase of joint equity, diversity and inclusion (EDI) action plan.
Recognising culture as key to sustainable economic growth
Creative UK Provocation paper: Culture as Growth Infrastructure.
Futurebuild and UK Construction Week London Unite
Creating the UK’s Built Environment Super Event and over 25 other key partnerships.
Welsh and Scottish 2026 elections
Manifestos for the built environment for upcoming same May day elections.
Advancing BIM education with a competency framework
“We don’t need people who can just draw in 3D. We need people who can think in data.”