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Install a heat pump for less with the BUS grant
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Air source heat pumps are an energy-efficient, sustainable way to meet your household’s heating and cooling demands. In the UK, the cost of installing an air source heat pump typically ranges from £8,000 to £18,000, depending on property size and system specifications.
However, with the UK government's Boiler Upgrade Scheme, homeowners can receive a grant of £7,500, significantly reducing the average installation cost to between £500 and £10,500.
Despite how much air source heat pumps cost in the UK, they can be worth it. As a general rule, they provide up to £290 in annual savings (when considering the running costs of heat pumps vs boilers) for many years to come.
Read more about whether a heat pump is worth it for you in our article: Are heat pumps worth it?
As of 23 October 2023, the Boiler Upgrade Scheme heat pump grant increased to £7,500 for air source heat pumps and ground source heat pumps. This puts many heat pumps in roughly the same cost range as a high-efficiency combi boiler, which typically costs between £2,500 and £4,500, including installation.
In what follows, we’ll walk you through how much it costs to replace a boiler with a heat pump. However, if you want to find out the exact heat pump installation cost in the UK, you will need to consult a heat pump installer.
Instead of wasting hours or even days researching installation companies and trying to compare prices, simply fill in our form in just 30 seconds. Secure the best deals and receive up to 4 free, non-binding quotes from thoroughly vetted installers!
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So, how much are heat pumps in the UK? The supply cost of an air source heat pump ranges from £2,400 to £12,350. However, when factoring in installation, the total cost for a typical 3–4 bedroom home is around £8,000 to £18,000.
Air to air heat pumps are on the lower end of this price range, as they can only provide heating and cooling. Air to water heat pumps, while more expensive, are usually the better choice for most homes since they integrate with a central heating system and provide hot water.
Keep in mind that air source heat pumps are one of the more affordable options in the UK. Ground source heat pumps, by comparison, cost between £10,500 and £37,000, with an average of £15,000 to £20,000 for a 3–4 bedroom house. Hybrid systems or high temperature air source heat pumps also tend to be costly, ranging between £7,500 to £11,000.
The exact cost of an air source heat pump installation will vary depending on your situation. Below you can find the estimated cost of installing an air to air or air to water heat pump for an average household:
Household size | Technology type | Heat pump size | Average cost including installation |
---|---|---|---|
1 bedroom | Air to air heat pump | 7.5kW | £4,000 |
1 bedroom | Air to water heat pump | 4kW | £8,000 |
2-3 bedrooms | Air to air heat pump | 9.5kW | £7,000 |
2-3 bedrooms | Air to water heat pump | 13kW | £13,000 |
4-5 bedrooms | Air to air heat pump | 11.5kW | £9,500 |
4-5 bedrooms | Air to water heat pump | 16kW | £15,500 |
To lessen the financial burden of installing a heat pump for your home, you can apply for grants such as the Boiler Upgrade Scheme. This way, you can receive a grant of up to £7,500 that will be deducted from the total costs you pay to your installer.
There are also other grants but they are regionally-dependent. For example, the Warm Homes Programme can decrease the standard air source heat pump cost in Wales for all households. Other grants like Warmer Homes Scotland caters to Scottish homeowners struggling with energy bills.
Let’s go over all the available heat pump grants in the UK:
Heat pump grants | Run time | Potential savings | Eligibility |
---|---|---|---|
0% VAT | April 1st 2022 – March 2027 | 5% VAT savings on heat pumps and installation | All UK buyers |
Boiler Upgrade Scheme (BUS) | April 2022 – April 2028 | Up to £7,500 | Homeowners in England & Wales |
ECO4 (Energy Company Obligation Scheme) | April 2022 – 31st March 2026 | Up to 100% cover for new heat pump installations | Low-income and vulnerable households in Great Britain (excluding Northern Ireland) |
Home Energy Scotland Grant and Loan Scheme | Indefinite | Up to £7,500 Grant and up to £7,500 loan | Homeowners in Scotland |
Home Upgrade Grant | April 2023 – April 2025 | Between £3,000 to £24,000 per household | Homeowners in England |
Warm Homes Programme Wales | April 2024 – 2025 | Up to £5,000 | Homeowners in Wales |
Warmer Homes Scotland | Indefinite | Up to £10,000 | Homeowners in Scotland |
If the upfront cost of a heat pump feels too high, there are several ways to spread out the payments or reduce the cost altogether. One of the best ways to cut the cost is through government grants. These don’t have to be repaid:
Keep in mind that many of the grants for heat pumps depend on income and/or the energy performance certificates of applicant households. Eligibility usually depends on an Energy Performance Certificate (EPC) rating between D-G and an income below £19,000 per year for a single-person household.
If you don’t qualify for a grant or still have some costs to cover, many heat pump suppliers and energy companies offer financing plans that break the cost into smaller, more manageable payments. These often include:
Compared to electric, gas- or oil-based heating systems, air source heat pumps generally have lower running costs. While a heat pump typically costs between £830 and £1,600 per year to run, this is often cheaper than electric resistance heating or oil boilers, which cost over £2,000 annually.
To give you an idea of the cost of running a heat pump, we calculated the yearly running costs of an air source heat pump. The key factors we considered include:
If you're wondering "How much does air source heating cost to run?", the table below breaks it down for different home sizes:
Household size | Estimated annual energy demand | Annual heat pump running costs | Annual gas boiler running costs |
---|---|---|---|
1 bedroom | 8,000 kWh | £830 | £780 |
2-3 bedrooms | 12,000 kWh | £1,150 | £1,130 |
4+ bedrooms | 17,000 kWh | £1,600 | £1,615 |
It is important to note that the exact running costs depend on several factors:
Note: The video contains some outdated savings figures that may not reflect current energy trends. Prices shown on the rest of this page are reflective of the most recent energy price cap.
Heat pump service costs can range from £150 to £300 annually. Service costs can be higher for ground source heat pumps and can also vary based on installer rates.
Some basic maintenance, like checking ducts, filters, and indoor coils for debris, can be done by homeowners with simple tools. However, a full inspection of refrigerant levels and electrical components is best left to a professional to ensure efficiency and longevity.
Maintaining a heat pump is important because an inefficient unit can consume significantly more energy. According to heat pump manufacturer Viessmann, a poorly maintained heat pump may use up to 25% more energy than one that is properly serviced.
Air source heat pumps can lower heating bills, but installation costs can be off-putting. Comparing installers helps avoid overspending, but doing it yourself is time-consuming with no guarantee of the best deal.
To skip the hassle, why not use our free, non-binding quotes service? Fill in our 30-second form, and up to 4 trusted local installers will contact you with quotes for an air source heat pump installation.
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Currently, an air source heat pump installation costs between £3,500 to £6,000, excluding materials and the heating system. The exact price you spend depends on the kind of air source heat pump you will be installing, the complexity of the installation, the size of your home, and the labour costs of the installer you work with.
Type of property | Duration | Installation cost (average) |
---|---|---|
2 bedroom semi-detached | 2-3 days | £3,500 - £4,500 |
3 bedroom semi-detached Installation |
3 days | £4200 - £6,500 |
5 bedroom detached | 3-5 days | £6,000 or higher |
Typically, an air source heat pump installation takes between 2 to 5 days to complete. The more complex the installation, the more time the installer will have to spend working on your home, resulting in you having to spend more on labour costs.
Factors that complicate air source heat pump installation include the size of the property, how old the infrastructure is, accessibility, and whether it needs more complex pipework, underfloor heating, an air to water unit, or other add-ons.
While the cost of air source heat pump installations can be high, in time, your investment will pay off. On average, heat pump running costs can be 3 to 4 times lower than the average gas boiler.
Below, you can find an overview of the savings you can expect after having installed an air source heat pump for your home, according to the Energy Savings Trust:
Tha figure above compares an air source heat pump with a Coefficient of Performance (COP) of 3.5, which can be 4 times as efficient as a G-rated gas boiler.
Energy System Being Replaced | Estimated Savings |
---|---|
Gas boiler (A-rated) | -£3 |
Gas boiler (G-rated) | £290 |
Old oil boiler | £280 |
Old LPG boiler | £650 |
Old electric storage heaters | £1,200 |
New electric storage heaters | £700 |
As you can see, savings with an air source heat pump will vary significantly depending on the energy system you’re replacing. Considering that gas boilers are the most popular heating source in the UK today, the average break-even point for replacing a gas boiler with an air to air heat pump is about 17 years. However, this estimate applies if there are no loans, grants, or other sources of funding to offset the cost.
Unlike gas boilers, heat pumps gather 75% of their heat from renewables and use only 25% of electricity. Heat pumps also meet your household heat demand with a lower carbon footprint cost, allowing for up to 2900 kg of carbon compared to an A-rated gas boiler.
The exact duration of your return on investment period for installing an air source heat pump can fluctuate significantly. Since it depends on current energy prices, the quality of your home’s insulation, and the size of the heat pump you are having installed, there can be variations.
To maximise your savings, avoid overspending on your new air source heat pump by comparing multiple prices from different installers. Doing this alone can take days of research. Fortunately, you can skip the hassle by simply filling in our 30-second form and requesting quotes from heat pump installers operating in your area.
Then, just sit back while up to 4 reputable installers reach out to you with quotes for a new air source heat pump installation.
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Several factors influence how much heat pumps in the UK cost. These include:
Here are some tips to help you decide if an air source heat pump is the best choice for your home:
If you want to cut heating bills and reduce reliance on gas, an air source heat pump can be a smart upgrade. These systems extract heat from the air and use far less energy than traditional boilers. This means lower running costs, especially if your home is well-insulated. If you live in a flat, heat pumps for apartments offer a space-efficient option.
Before making the switch, consider practical factors. Are heat pumps noisy? Some models run quietly, but others may produce noticeable sounds. How does a heat pump work in winter? Performance drops in freezing temperatures, so good insulation and a backup heating source may be needed.
Keep in mind that not all heat pumps perform the same. Noise levels, cold-weather efficiency, and running costs vary between models. To find the best fit for your home, check manufacturer specifications and compare models based on efficiency ratings, operating temperatures, and sound levels.
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Even though electricity tariffs are generally high, the running costs of air source heat pumps are very low, as they are highly efficient. However, the level of efficiency depends on several factors.
How much cheaper an air source heat pump is to run will depend on what type of heating system you’re comparing it to. For example, if you are replacing an old oil or LPG boiler with a standard air source heat pump you could save up to £650.
Compared to a standard gas boiler, a new air source heat pump could save the average home up to £290 on annual running costs.
The cost of an air source heat pump in the UK depends on household size. The total cost ranges from £2,400 to £12,350.
Rawal Ahmed is a writer at GreenMatch with an interest in sustainability and a background in tech journalism and digital marketing.
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