A Comprehensive Guide to Energy Sources for Air Conditioning in UK Properties: Economics, Pros, and Cons

Air conditioning is becoming increasingly popular in UK homes and commercial properties as a way to enhance comfort and support modern living. However, one of the most important aspects to consider when investing in an air conditioning system is the type of energy it uses. The cost, efficiency, and environmental impact all play a role in choosing the best energy source for your property, and understanding your options can help you make an informed decision.

In this guide, we’ll explore the different energy fuels commonly used for air conditioning systems in UK properties.  Oil, electricity, air source heat pumps, LPG (liquefied petroleum gas), and natural gas.

We’ll dive into the economics of each, highlight their pros and cons, and help you determine which suits your needs best.

Energy Sources for Air Conditioning: An Overview

Air conditioning systems typically use electricity as their primary energy source, but advancements in technology now offer options powered by renewable and alternative fuels, such as air source heat pumps, LPG, and natural gas. Each energy type impacts both the running costs and environmental footprint of the system, making it vital to understand the attributes of each option.

Electricity-powered air conditioning

Overview: Electricity-powered air conditioning is the most common option in UK homes today. Most traditional split systems and ducted air conditioners rely on electricity for operation. This includes cooling, heating (if the unit has reverse-cycle functionality), and powering internal fans and compressors.

Economics

  • Cost per kWh: Electricity tends to have higher per-unit costs compared to other fuels.
  • Efficiency: Modern air conditioning systems, especially inverter models, are highly energy-efficient, making electricity a cost-effective option despite per-unit pricing.

Pros

  • Widely available in all residential and commercial properties.
  • Works seamlessly with advanced inverter technology.
  • Suitable for smaller, energy-efficient units.

Cons

  • Higher running costs for larger systems or extended usage.
  • Reliance on grid electricity may result in increased carbon footprint unless supplemented by renewable energy sources like solar panels.

Air Source Heat Pump-powered air conditioning

Overview: Air source heat pumps are among the most sustainable options for air conditioning. These systems transfer heat from the air outside to heat or cool indoor spaces, requiring electricity to facilitate the heat exchange process.

Economics

  • Initial costs: Higher upfront costs due to specialised equipment and installation.
  • Operating costs: Very energy-efficient, with lower long-term expenses compared to traditional electric systems.

Pros

  • Environmentally friendly, often recognised as renewable energy.
  • Extremely efficient for both heating and cooling.
  • Eligible for government incentives, such as the Renewable Heat Incentive.

Cons

  • Requires suitable outdoor space for installation.
  • Performance can drop in very cold climates, requiring supplementary heating sources.
  • Higher upfront investment compared to traditional systems.

Natural Gas-powered air conditioning

Overview: Although less common for residential air conditioning systems, some commercial properties or larger homes use natural gas-powered systems—specifically gas-powered chillers—for cooling purposes.

Economics

  • Lower running costs: Natural gas is typically cheaper than electricity on a per-unit basis.
  • Cost fluctuation: Pricing is subject to global supply changes, making it less predictable than electricity.

Pros

  • Cost-effective for prolonged use or larger spaces.
  • Reliable supply in UK homes equipped with gas mains.
  • Reduces electricity dependence.

Cons

  • Higher installation complexity.
  • Limited availability for residential air conditioning systems.
  • Burning gas emits CO₂, making it less environmentally friendly than electricity paired with renewables.

LPG-powered air conditioning

Overview: LPG (Liquefied Petroleum Gas) systems require a dedicated storage tank and equipment to power cooling units. This energy source is more common in rural or off-grid settings.

Economics

  • Moderate running costs: Cheaper than electricity in areas without access to natural gas.
  • Delivery costs: Additional costs for storage tank refills increase overall expenses.

Pros

  • Suitable for properties in off-grid locations.
  • Flexible supply and adaptable to different system types.

Cons

  • Limited availability in urban areas.
  • Higher environmental impact compared to electric systems or heat pumps.
  • Requires careful storage and handling due to safety risks.

Oil-powered air conditioning

Overview: Oil-powered air conditioning systems operate similarly to LPG but are relatively rare for UK residential applications, typically confined to older systems or specific rural setups.

Economics

  • High running costs: Fluctuating oil prices make this one of the least economical options.
  • Limited efficiency: Systems running on oil tend to have lower performance compared to electricity or gas alternatives.

Pros

  • Viable for properties entirely off-grid.
  • Can be a short-term solution where other options are unavailable.

Cons

  • High cost and low efficiency.
  • Storage adds safety and maintenance requirements.
  • Significant environmental impact due to CO₂ emissions.

Air Conditioning Energy Sources Ranking By Cost Efficiency

  1. Most Economic: Air source heat pumps (low running costs, high efficiency over time).
  2. Moderately Economic: Natural gas (suitable for larger properties).
  3. Least Economic: Oil (high costs and poor performance).


Which Energy Source Should You Choose for air conditioning units?

Selecting the best energy source for air conditioning installations in your property depends on your priorities. Whether it’s upfront costs, long-term efficiency, availability, or environmental impact.

For typical homeowners in Surbiton, Surrey, and London for instance, electricity-based systems and air source heat pumps are the most practical and effective solutions. (As an aside,  the Government are offering grants towards installing heat pumps – as of May 2025 - however this is bound to change so please do your research on this before having a heat pump installed if you’re relying on a grant).

Anyway, back to other energy sources for air conditioning installations…

While natural gas offers cost benefits for larger properties, it may not be suitable for homes leaning toward sustainability efforts.

Whatever your energy preference, ensure your air conditioning system is installed and serviced by qualified professionals to maximise performance and safety. At 365 Trade Group, we’re here to help you choose and maintain the perfect system for your needs.

What to do next

At 365 Trade Group, we understand the importance of balancing efficiency, affordability, and environmental considerations in your electrical systems. Whether you're considering air conditioning installation or air conditioning servicing, we’re ready to provide expert advice and reliable solutions tailored to your property.

Contact our team today to discuss your air conditioning needs and let us make the process stress-free for you. Remember, with 365 Trade Group, quality, safety, and satisfaction are always at the forefront of everything we do. 

Contact our air conditioning installers today!

Ready to experience the benefits of a professionally installed air conditioning system? Contact 365 Trade Group today to schedule your initial consultation.

Call us on 0800 788 0629 to learn more about our air conditioning services.

Let us help you create a more comfortable, efficient, and healthier indoor environment.