Heat pump or heating oil: the real cost in 2026

Every autumn, thousands of households in Patras and the surrounding region face the same dilemma: fill the oil tank for one more year, or finally make the move to a heat pump? The question is no longer just environmental — it is squarely financial, and in 2026 the answers are shifting as new support schemes appear from both PPC (ΔΕΗ, the national utility) and the state. In this article we look at the real cost of heating source by source, the new PPC myEnergy HeatPump offer, and the upcoming "Allazo Thermansi" (Change My Heating) programme.

The comparison is not merely academic — it has a direct impact on every household's wallet, especially at a time when fossil-fuel prices remain volatile and electricity costs follow a different, often more predictable path. The decision to change heating system should not rest on the price of oil on the day you fill the tank, but on the full cost picture over a decade.

The real cost of heating, source by source

The most useful comparison is not the fuel price per litre or per kilowatt-hour, but the cost per unit of heat that actually reaches your home — because every system has a different efficiency. Heating oil burns at a boiler efficiency of around 85–90%, so almost all the fuel's energy becomes heat, but its price has historically been the most unstable and often the most expensive per unit of heat of the three options. Natural gas follows a similar efficiency logic to oil, with the advantage of a steadier price, but it is only available in areas served by the gas grid.

A heat pump works completely differently: it burns no fuel, but "pumps" heat from the surrounding air and moves it indoors, using electricity only to run the compressor. The result is a coefficient of performance (COP) that typically ranges from 3 to 4.5 — for every unit of electricity it consumes, it delivers 3 to 4.5 times as much heat. Even with electricity costing more per kilowatt-hour than oil, that multiplier makes the final cost per unit of heat significantly lower in most cases, especially when combined with solar or a cheap night tariff.

Note that a heat pump's real efficiency is not constant through the year — it falls as the outdoor temperature drops, since the machine has to "pull" heat from colder air. In most of the region around Patras, with mild winters and rare prolonged frosts, this is not a real problem and the average annual efficiency stays high. In areas with harsher winters, sizing the heat pump correctly — neither smaller nor excessively larger than the building's real need — becomes even more critical to preserving the cost advantage over oil.

PPC myEnergy HeatPump: what it actually offers

The PPC myEnergy HeatPump programme aims to make exactly this transition easier by removing the obstacle of the upfront cost. It is based on financing over up to 72 instalments with zero deposit, through a partnership with a major bank — six years of repayment without taking a single euro out of your pocket on installation day. On top of that, PPC offers a €500 credit on your electricity bill and a €200 retail voucher, two extra incentives that noticeably lower the real cost. Installation is carried out through PPC's network of partner installers.

It is also worth noting that PPC participates in the state "Allazo Systima Thermansis" (Change My Heating System) scheme, which offers a 50% subsidy of up to €5,000 for the heat pump itself, plus up to €1,000 for installation. Combining the state subsidy with PPC's interest-free (or favourable) financing can bring the monthly instalment down considerably. The point that deserves care, as with SolarSmart, is to read the exact financing terms — interest rate, any arrangement fees, whatever applies at the time of your application — before committing, since terms may vary with the applicant's profile.

The "Allazo Thermansi" programme coming in the first half of 2027

Alongside the commercial offers, the state is preparing a new, larger-scale support programme: "Allazo Thermansi" (Change My Heating), expected to launch in the first half of 2027 and funded with €1 billion from the Social Climate Fund. According to the announcements so far, the programme will run in rounds, targeting around 200,000 beneficiaries a year — roughly 130,000 heat pumps and 70,000 solar water heaters. It is one of the largest heating-replacement programmes ever designed in Greece, and it is expected to generate huge demand — and therefore likely delays in installer availability — as soon as it opens.

The obvious question is whether it is worth waiting for "Allazo Thermansi" rather than going ahead now through PPC myEnergy HeatPump or through an independent engineer and contractor. The realistic answer is that it depends on the state of your existing system: if the oil boiler still runs reliably, waiting a few months until the new programme's exact terms are clear makes sense. If, however, you are already replacing it because of a breakdown or its age, the cost of a whole heating season on oil often outweighs the benefit of waiting.

Pressure from the EU buildings directive (EPBD)

There is one more reason why switching to a heat pump is not just a matter of today's fuel cost: the revised EU Energy Performance of Buildings Directive (EPBD) gradually introduces minimum energy-class requirements for selling and letting older homes. In practice, this means that as the years go by, a home still heated by an old oil boiler and lacking adequate insulation will find it harder and harder to sell or let at a competitive price, regardless of its current heating cost. Replacing the heating system is therefore not only a decision for today but also an investment in the future marketability of your property — a factor rarely accounted for properly when only fuel costs are compared.

Whether you go ahead now through PPC myEnergy HeatPump, through the traditional process with an engineer, or decide to wait for "Allazo Thermansi" in 2027, pairing a heat pump with your own solar system remains the financially strongest solution in the long run, since the electricity the heat pump uses can be generated almost for free on your roof. See with our solar calculator how a solar system pairs with your home's heating needs.

Want to see the numbers for your own home? Try the Heat Pump Calculator — it estimates your annual savings from four inputs, with no contact details required.