How Much Does a Heat Pump Cost in the UK?
An air source heat pump, the type most UK homes fit, costs £8,000 to £14,000 installed. The £7,500 Boiler Upgrade Scheme grant comes straight off that, so the net cost is usually £500 to £6,500. Ground source systems cost more, £18,000 to £35,000, because of the ground loops or boreholes, but qualify for the same grant.
Quick Answer
An air source heat pump costs £8,000 to £14,000 installed in the UK, or £500 to £6,500 after the £7,500 Boiler Upgrade Scheme grant. Ground source heat pumps cost £18,000 to £35,000 before the grant. All prices carry 0% VAT on residential installs.
Prices as of early 2026, based on UK MCS-certified installer quotes.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Heat pump cost by type
| Heat Pump Type | Cost Before Grant | BUS Grant | Net Cost | SCOP |
|---|---|---|---|---|
| Air source (air-to-water) | £8,000–£14,000 | −£7,500 | £500–£6,500 | 3.5–4.5 |
| Ground source | £18,000–£35,000 | −£7,500 | £10,500–£27,500 | 4.0–5.0 |
| Air-to-air (no hot water) | £2,500–£4,500 | Not eligible | £2,500–£4,500 | 3.5–4.5 |
| Hybrid (heat pump + boiler) | £10,000–£15,000 | −£7,500 | £2,500–£7,500 | 3.0–4.0 |
The £7,500 Boiler Upgrade Scheme grant applies to air source and ground source systems in England and Wales when fitted by an MCS-certified installer. Scotland uses Home Energy Scotland grants and loans instead. See our heat pump grants guide.
What does the cost include?
UK quotes bundle the kit and the fitting into one price. Across the installer quotes we see, the 6 to 8 kW air source range covers most three and four-bed homes, and that is the band the figures below are built around. Here is where the money goes on a typical 8 kW install.
| Component | Approx. Cost | Notes |
|---|---|---|
| Heat pump unit | £4,000–£6,000 | Brand and size dependent |
| Installation & labour | £2,500–£4,000 | 2 to 3 days on site |
| Hot water cylinder | £600–£1,200 | If a suitable one is not already fitted |
| Radiator upgrades | £800–£2,500 | Only if existing rads are undersized |
| Total before grant | £8,000–£14,000 | At 0% VAT |
| BUS grant | −£7,500 | Applied by installer |
| Net cost | £500–£6,500 |
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Get a Quote →Heat pump installation cost
Installation is not a separate line you pay on top, it is built into the quoted price. Of a typical £8,000 to £12,000 air source job, the labour and fitting account for roughly £2,500 to £4,000. The rest is the unit, cylinder and any radiator work. The full process from survey to commissioning usually runs 6 to 12 weeks, with 2 to 3 days of that on site. See our full heat pump installation guide.
Heat pump running costs
A heat pump turns one unit of electricity into 3 to 4 units of heat, so running cost is well below direct electric, oil and LPG heating. A typical 3-bed home spends £700 to £1,100 a year, or £500 to £900 on a specialist heat pump tariff.
| Heating System | Annual Cost (avg 3-bed) |
|---|---|
| Oil boiler | £1,500–£2,200 |
| LPG boiler | £1,800–£2,600 |
| Gas boiler | £1,000–£1,500 |
| Electric storage heaters | £1,800–£2,500 |
| Heat pump | £700–£1,100 |
| Heat pump on a heat pump tariff | £500–£900 |
Powering a heat pump from solar panels cuts running costs further still.
Heat Pump Cost FAQ
How much does a heat pump cost in the UK?
An air source heat pump costs £8,000 to £14,000 installed in 2026, or £500 to £6,500 after the £7,500 Boiler Upgrade Scheme grant. Ground source heat pumps cost £18,000 to £35,000 before the grant. All residential installs carry 0% VAT.
How much does it cost to install a heat pump?
Installation is included in the quoted price, not charged on top. Of a typical £8,000 to £12,000 air source install, labour and fitting account for £2,500 to £4,000, with the rest being the unit, hot water cylinder and any radiator upgrades.
How much is an air source heat pump?
An air source heat pump costs £8,000 to £14,000 installed before the grant. A 3-bed semi typically needs a 6 to 8 kW unit at £9,000 to £12,000, dropping to £1,500 to £4,500 net after the £7,500 grant.
How much does a ground source heat pump cost?
Ground source heat pumps cost £18,000 to £35,000 installed, more than air source because of the ground loops or boreholes. They qualify for the same £7,500 grant and run at a higher efficiency (SCOP 4 to 5).
What is the £7,500 heat pump grant?
The Boiler Upgrade Scheme (BUS) gives £7,500 off an air source or ground source heat pump in England and Wales, applied as a discount by your MCS-certified installer. Scotland has its own Home Energy Scotland grants and loans.
Are heat pumps expensive to run?
No. A 3-bed home spends £700 to £1,100 a year running a heat pump, dropping to £500 to £900 on a specialist heat pump tariff. That undercuts oil, LPG and electric heating because a heat pump produces 3 to 4 units of heat per unit of electricity.
Why are heat pumps so expensive upfront?
The upfront cost reflects the unit itself, a hot water cylinder, 2 to 3 days of skilled installation, and sometimes radiator upgrades. The £7,500 grant and 0% VAT exist to offset this, and lower running costs recover the rest over time, especially when replacing oil or LPG.
Related Guides
Air Source Heat Pumps
Cost, best brands, running costs, and pros and cons for UK homes.
Are Heat Pumps Worth It?
Honest verdict by home type, running costs, payback and pros and cons.
Ground Source Heat Pumps
Cost, efficiency, ground loops vs boreholes, and the £7,500 grant.
Heat Pump Installation
The process, timeline, and cost of installing a heat pump.
Sources
- GOV.UK: Boiler Upgrade Scheme (BUS)
- Energy Saving Trust: Heat Pump Costs
- MCS: Certified Products & Installers
Last updated: June 2026
John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He researches every battery and inverter brand against manufacturer datasheets, MCS and Ofgem data, and feedback from the MCS-certified installers in our directory before publishing.
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