Gas to Electric: What the Transition Looks Like for a Real UK Warehouse

THE SHORT ANSWER
There is no single right way to electrify warehouse heating. Direct electric systems, either electric warm air or electric radiant, have a low installation cost but a higher running cost, because electricity costs around three to four times more per unit than gas. A heat pump driven LPHW system costs far more to install but much less to run, because it delivers two to four units of heat per unit of electricity. The right choice depends on your capital budget, your heating demand, how long you will be in the building and your tolerance for running cost. Whichever route you take, reducing heating demand first makes it cheaper.
The direction of travel for UK industrial heating is clear. Gas is on the way out and electric is on the way in. Government net zero commitments, the tightening of building regulations, pressure from customers and investors on corporate carbon reporting and the long-term uncertainty around gas prices are all pushing warehouse operators to look at electrifying their heating.
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But there is a gap between knowing the direction and knowing how to get there. Electrifying warehouse heating is not as simple as swapping gas heaters for electric ones, and anyone who tells you otherwise is not giving you the full picture. This guide walks through what the transition actually looks like for a real UK warehouse, including the parts that are often left out of the sales pitch.
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Why Warehouses Are Electrifying
There are several genuine drivers behind the move from gas to electric warehouse heating:
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Net zero and carbon reporting: Businesses reporting under SECR or with their own net zero commitments need to reduce the direct carbon emissions from burning gas on site. Electrifying heating moves those emissions off the books as the grid decarbonises
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Regulation: The direction of building regulations and the Future Buildings Standard makes gas heating in new and significantly refurbished buildings increasingly hard to justify. Many new warehouses are being built all-electric from the outset
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EPC and MEES: The carbon intensity of the heating system affects the EPC rating, which affects whether a building can be let under Minimum Energy Efficiency Standards
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Future-proofing: Installing an electric-ready system now avoids a forced and expensive replacement later when regulations tighten further
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Corporate and customer pressure: Larger customers increasingly ask about the carbon footprint of their supply chain, and a gas-heated warehouse is a visible part of that
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The Cost Reality You Need to Understand First
Before going further, there is an important fact that any honest discussion of gas to electric has to start with. In the UK, electricity costs significantly more per kilowatt hour than gas, typically three to four times more. This single fact shapes everything about how the transition should be approached.
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If you simply replaced gas warm air heaters with direct electric warm air heaters of the same output, your heating running costs would rise substantially, because every kilowatt hour of heat would now cost three to four times as much. Direct electric resistance heating is one for one: one unit of electricity produces one unit of heat. That is why a naive gas to electric swap usually makes no financial sense for a building with a large, continuous heating demand.
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The way the maths can work in favour of electrification is through heat pumps. A heat pump does not convert electricity to heat one for one. It uses electricity to move heat from the outside air into the building, typically delivering two to four units of heat for every unit of electricity consumed. That efficiency multiplier is what closes the gap with gas and, in a well-designed system, can make electric heating competitive on running cost as well as carbon.
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But a heat pump is not automatically the answer. It carries a high capital cost, needs external plant space and often requires an electrical supply upgrade, so the upfront figure can be several times that of a standard electric system. For that reason many warehouses electrify with direct electric warm air or electric radiant instead, accepting the higher running cost in exchange for low installation cost and simplicity. This is a genuine and often sensible trade-off, particularly for smaller buildings, intermittently heated spaces, leased premises or where capital is limited.
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So the transition is a balance between capital cost and running cost. A heat pump driven system makes the strongest case where heating demand is high and continuous and the owner has the capital and the time horizon to benefit from the lower running cost. A direct electric system makes the stronger case where installation cost and simplicity matter more than long-term running cost. Understanding that trade-off is the single most important part of planning the move.
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The Electric Heating Options
There are three broad approaches to electric warehouse heating, and the right answer often combines them.
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LPHW Driven by a Heat Pump
For a large warehouse with high, continuous heating demand, an LPHW (Low Pressure Hot Water) system driven by an air-source heat pump is often the strongest route to electrification on running cost. The heat pump generates hot water, which is distributed around the building and delivered as warm air through unit heaters. This is the approach that benefits from the heat pump efficiency multiplier, making it economical to run for a building with significant heating demand, though it carries the highest installation cost of the three options.
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The Apen AX LPHW unit heater is designed to work with heat pump systems, delivering warm air heating from the hot water circuit across a wide range of outputs. The Reventon S-3S is a robust LPHW alternative. Crucially, an LPHW system can be designed to run on a gas boiler now and switch to a heat pump later, which is central to a phased transition.
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A heat pump is not the only electric heat source for an LPHW system. The hot water circuit can also be generated by an electric boiler. An electric boiler has a much lower installation cost than a heat pump and needs no external plant space, but because it converts electricity to heat one for one it does not deliver the heat pump's efficiency multiplier, so it costs more to run. An electric boiler can be a sensible choice where the heating demand is modest, where there is no space for a heat pump, or as an interim electric heat source in a phased transition before a heat pump is fitted later. It also keeps the same LPHW distribution system and unit heaters whichever heat source is used.
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Electric Radiant Heating
Electric radiant heaters warm people and surfaces directly rather than heating the air. Because they target the heat where it is needed rather than warming the whole air volume, they can be an efficient way to use electricity in the right application, particularly for zone heating, high-bay areas and spaces with frequent door openings. The Apollo and Sorrento electric radiant heaters suit these applications. Radiant heating is often used alongside an LPHW system rather than instead of it, heating specific zones while the LPHW system provides background warmth.
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Direct Electric Warm Air
Direct electric warm air heaters like the Flowair LEO EL are a legitimate and common choice for electrification. They convert electricity to heat one for one, so their running cost is higher than a heat pump system, but their installation cost is far lower and they are simple to fit with no external plant, no pipework and usually no major electrical infrastructure beyond the supply itself. For smaller buildings, ancillary spaces, spot heating, intermittently heated spaces, leased premises or any situation where capital budget and simplicity matter more than long-term running cost, direct electric warm air is often the sensible answer. The trade-off is straightforward: lower cost to install, higher cost to run.
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Reduce the Demand Before You Electrify
One of the most important steps in a gas to electric transition is often overlooked. Before you electrify, reduce the heating demand. Because electricity is more expensive per unit than gas, every kilowatt hour you can avoid needing in the first place is worth even more after electrification than before.
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This means addressing the building before or alongside the heating change:
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Destratification fans: The Hadar DSF recovers warm air from ceiling level, reducing the total heat the system needs to produce. This lowers the size and running cost of the electric system you then install
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Air curtains on loading doors: Reducing heat loss through open doors directly reduces heating demand. We suggest using Sonniger Guard Pro.
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Improving controls and zoning: Heating only the areas that need it, only when they need it, reduces the load
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Addressing the building fabric where practical: Better insulation and air tightness reduce the heat the building loses
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A warehouse that has reduced its heating demand by 20% or 30% through these measures needs a smaller, cheaper heat pump system and pays less to run it. Reducing demand first is the step that makes the whole transition more affordable.
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The Practical Considerations Often Left Out
Beyond choosing the heating technology, there are practical realities to a gas to electric transition that need to be planned for:
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Electrical supply capacity: Electrifying heating significantly increases a building's electrical demand. The existing incoming supply may not have the capacity, and upgrading the supply can be a significant cost and can involve long lead times with the distribution network operator. This needs to be checked early
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Space for plant: Air-source heat pumps need external space with good airflow. This needs to be designed into the project
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Distribution pipework: An LPHW system needs pipework run around the building. In an existing occupied warehouse this needs careful planning to minimise disruption
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Phasing around operations: A working warehouse cannot usually shut down for a heating replacement. The transition needs to be phased so the building stays operational and heated throughout
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A Realistic Phased Approach
For most existing warehouses, the transition is not a single overnight switch. It is a phased journey that can be spread over time and budget cycles. A realistic sequence often looks like this:
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Phase one, reduce demand: Install destratification fans, air curtains and improved controls. This cuts the gas bill immediately and reduces the size of the electric system needed later
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Phase two, install an LPHW distribution system: When the heating is next replaced, install an LPHW system with unit heaters, initially run from a gas boiler or a hybrid arrangement. The building is now electric-ready
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Phase three, switch the heat source: When budget, electrical capacity and commercial drivers align, replace the gas boiler with an air-source heat pump. The distribution system and unit heaters stay in place. The building is now running on electric heating
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This phased approach spreads the cost, keeps the building operational throughout and avoids a single large capital outlay. Each phase delivers a benefit in its own right, so the project is worthwhile even before the final phase is complete.
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Where to Start
The right transition path depends on your building, your heating demand, your electrical supply, your operational pattern and your timescale. There is no single answer, but there is a sensible first step: understand your current demand, identify where it can be reduced and model the realistic options for electrification.
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Hadar Industries works with warehouse operators across the UK on heating strategy, from immediate efficiency improvements through to full electrification. We can assess your building, recommend the demand reduction measures that make the biggest difference and design an electric-ready heating system with a realistic phased path. Contact us today for a free site survey.
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Frequently Asked Questions
Is it cheaper to heat a warehouse with gas or electric?
Per unit of energy, gas is currently cheaper than electricity in the UK, typically by a factor of three to four. A direct electric system, electric warm air or electric radiant, therefore costs more to run than gas, but it is cheap and simple to install. A heat pump cuts the running cost because it delivers two to four units of heat per unit of electricity, but it costs far more to install. Which is cheaper overall depends on your heating demand and how long you will be in the building: high continuous demand favours a heat pump over time, while lower demand or limited capital often favours a direct electric system.
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Can a warehouse be heated with an air-source heat pump?
Yes. A common approach for a large warehouse is an LPHW system where an air-source heat pump heats water that is circulated around the building and delivered as warm air through unit heaters. It is the most economical electric option to run for a building with high, continuous heating demand because it benefits from the heat pump's efficiency multiplier, though it has a higher installation cost than a direct electric system.
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Do I have to replace my whole heating system at once?
No. The transition can be phased. A typical sequence is to reduce heating demand first with destratification fans, air curtains and better controls, then install an electric-ready LPHW distribution system run initially from a gas boiler, then replace the gas boiler with a heat pump when budget and electrical capacity allow. Each phase delivers a benefit on its own.
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What is the difference between direct electric and heat pump heating?
Direct electric heating converts electricity to heat one for one, so one unit of electricity produces one unit of heat. A heat pump uses electricity to move heat from the outside air into the building, delivering two to four units of heat per unit of electricity. For continuous heating of a large space, a heat pump is far more economical to run than direct electric heating.
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Will electrifying my heating need an electrical supply upgrade?
It might. Electrifying heating significantly increases a building's electrical demand and the existing incoming supply may not have enough capacity. A supply upgrade can be a significant cost and can involve long lead times with the distribution network operator, so it should be checked early in the planning process.
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What should I do before electrifying my warehouse heating?
Reduce the heating demand first. Installing destratification fans, fitting air curtains to loading doors and improving heating controls all cut the amount of heat the building needs. Because electricity is more expensive per unit than gas, reducing demand before electrifying means a smaller, cheaper heat pump system and lower running costs afterwards.


