Complete Guide to Heat Pumps in the UK (March 2025)

Heat pumps work by transferring heat from a natural outdoor source into the home. There are several parts to the process which help to increase the temperature and direct this to your central heating or hot water systems. Here’s how it works:

Read a more in depth explanation in our how does a heat pump work? article.

There are three main types of heat pumps: ground, air and water source. Each type absorbs heat from a different natural resource. Ground source heat pumps will use heat trapped deep within the earth; air source draws in ambient air from outside through a fan unit; and water source heat pumps take heat from beneath water bodies (such as rivers).  

Read more about each type of heat pump by clicking the image links below:

An alternative to those above is a hybrid heat pump, which combines a heat pump and boiler. This system is designed to switch between both systems, depending on which is the most efficient at a given time. For example, if you require more heat than your heat pump can manage due to very cold temperatures, the boiler will act as a backup heating source. 

Hybrid options are great for homes with very high heating demands or those living in colder climates. They can reduce energy consumption, carbon emissions, and ensure a consistent heating supply. 

The average hybrid heating system costs between £10,250 to £18,550 fully installed, which includes both a heat pump and a new boiler.

With so many heat pump options, you might be confused as to which is the most suitable choice for your home. To help you decide, we’ve designed a quick chart to help you navigate which options are open to you based on the space surrounding your home, whether your home is insulated, and how high your heating demand is.

Ground source heat pumps generally demand larger outdoor areas, as they use underground pipe systems to absorb heat. This means digging large horizontal trenches to lay pipes, or drilling deep boreholes - both requiring a large area of land beside your home to do so. 

Hybrid heat pumps offer you a choice of which heat pump type you choose to pair with a boiler, however, they’re generally best for homes that rely on a large, consistent heating supply.

Water source heat pumps are, of course, only a real option for a home next to a suitable water body. However, most other homes can benefit from an air source heat pump - you don’t need ample outdoor space or a particularly large heating demand. This is why air source options are the most popular. Find out more about the best air source heat pumps.

A new heat pump can cost between £2,600 - £40,500, depending on the type you choose. The largest factor in this price will be the installation and labour fees, which increase greatly when you account for vertical drilling for ground source boreholes, for example. 

Aside from the supply and installation, running costs are also important to consider. These can be affected by the size of your home, how well-insulated your property is and the efficiency of the heat pump model.

Whilst our figures are based on the current market prices, these are only approximate. To get heat pump costs for your needs, it’s best to speak to qualified installers to compare quotes. This can be a long and tiring process though, spending hours on research and waiting days for a response.

Avoid wasting your spare time and use our simple, free service instead! When completing our 30-second form, we’ll get to work and connect you with up to 4 heat pump installers in your area. They can provide competitive quotes and ensure you get the best deal.

It’s free with no obligations. Just click below to get started.

Heat pumps are significantly more energy efficient than any other heating system. They offer up to four times as much heat production per unit of energy as traditional gas boilers. 

This means you can save between £290 and £550 when replacing your old gas boiler for an air source or ground source heat pump.  

Higher heat pump efficiency not only means annual savings but also a significant decrease in harmful emissions when compared to other heating systems. For example, a gas boiler may have an efficiency of 92%, meaning 8% of the fuel burned is lost as waste gases (causing emissions and increasing the amount of fuel you burn to reach desired temperatures). 

Here’s how heat pumps compare to other heating systems:

Heat pumps are a significant investment, but they do offer substantial annual savings long term. For example, if you replace an old gas boiler with an air source heat pump, you could save up to £290 per year on your energy bills. 

In addition, government incentives like the Boiler Upgrade Scheme can reduce your upfront installation costs by £7,500 to help make those upfront figures less intimidating. 

The table below shows the potential savings you could make when replacing an old, inefficient heating system (such as electric storage heaters) with a heat pump and the estimated point you can break even on your initial investment:

If you’re still wondering, are heat pumps worth it? Think about your own circumstances. Depending on your current situation, the repayment time can be drastically shorter than the lifespan, making it a worthy investment. Even though the consensus is that heat pumps are a good investment, this doesn’t mean that you should overpay on upfront costs. 

To ensure you get the best deal when you replace a boiler with a heat pump, we recommend comparing multiple quotes from local installers. This can take up hours of your free time when done alone, though, with endless scrolling and form-filling. Instead, you can fill in our 30-second form, and we’ll connect you with up to 4 trusted, qualified installers. You’ll get free quotes to compare, with no obligations attached. 

Click below to begin.

As you can see, heat pumps can be quite an investment. Thankfully, there are several heat pump grants in the UK that you could apply for to potentially lessen the financial burden of installing a heat pump. 

These include: The Boiler Upgrade Scheme, the Energy Company Obligation (ECO4), Warmer Homes Scotland, the Home Energy Scotland Scheme, and the Nest Scheme in Wales. You can also benefit from 0% VAT when installing a heat pump. 

Below is an overview of how much you can save on your heat pump installation with each of these grants:

Before starting the application process, make sure to check the eligibility criteria of each grant. Some are only open to those on low incomes, or living in homes that need energy efficiency upgrades. There may also be requirements to be on selected benefits or living in particular regions.

For example, homeowners choosing heat pumps in Scotland have three regional grants available. Whereas those living in Wales can apply for four, including the Nest Scheme.

Heat pump grants in Northern Ireland are slightly different from those in the rest of the UK. For this reason, we highly recommend checking our article on heat pumps in Northern Ireland.

If you’re looking for a low-carbon heating alternative, that can reduce your annual energy bills then a heat pump is a really great option to consider. However, not all homes are suitable for all types of heat pump, and not all heat pumps may fit your own heating needs. 

To help you decide if a heat pump is right for you, we’ve created a simple checklist below of all the important factors you should consider.

Finding a heat pump to suit your needs, that works best for your home and gives you the benefit of efficient, money-saving heating is an exciting prospect! But finding a trusted, qualified installer to help you can feel like an uphill struggle. Spending hours of your precious time requesting quotes and waiting days to hear back from anyone. 

Luckily, you can avoid all that stress and disappointment by filling in our one simple form instead. In just 30 seconds, we’ll have all we need to connect you with up to 4 heat pump installers from your area. They can provide you with quotes to compare so you can get the very best deal.

It’s completely free, with no obligation attached. Click below to get started!