Heat Pumps in the UK: Complete Guide
Heat pumps extract heat from the air, ground, or water outside your home and amplify it to heat your home and hot water. For every 1 kWh of electricity used, a heat pump produces 3–4 kWh of heat, making them 3–4 times more efficient than electric heaters and significantly cheaper to run than oil or gas boilers.
A typical air source heat pump costs £8,000–£12,000 installed in the UK. The Boiler Upgrade Scheme (BUS) grant of £7,500 is available, bringing the net cost down to as little as £500.
Last updated June 2026
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Quick Answer
A typical air source heat pump costs £8,000–£12,000 installed in the UK. The Boiler Upgrade Scheme (BUS) grant covers £7,500, bringing the net cost to as little as £500. Heat pumps produce 3–4 kWh of heat per 1 kWh of electricity, cutting heating bills by 50–70% compared to oil or gas.
How do heat pumps work?
Heat pumps work like a refrigerator in reverse. They extract heat from the air or ground outside your home, compress it to raise the temperature, and deliver it to your radiators, underfloor heating, and hot water cylinder. Even when outdoor temperatures drop to −15°C, heat pumps can extract usable heat. The ratio of heat output to electricity input is called the Coefficient of Performance (COP), a COP of 3.5 means 3.5 kWh of heat for every 1 kWh of electricity.
Air Source (most common)
Extracts heat from the outdoor air using a fan unit installed outside your home. COP of 3–4. Installed cost £8,000–£12,000. Suitable for most UK homes and by far the most popular choice (~90% of installations).
Ground Source
Extracts heat from the ground via buried pipes (horizontal loops or vertical boreholes). COP of 4–5. Installed cost £15,000–£25,000. Requires garden space for ground loops. Higher efficiency but higher upfront cost.
Types of heat pumps in the UK
Most UK homes fit an air source (air-to-water) heat pump, which feeds your radiators and hot water and qualifies for the £7,500 grant. Ground source is more efficient but costs more and needs garden space. Air-to-air units heat and cool single rooms like air conditioning but do not heat hot water or qualify for the grant. Each has a dedicated guide below.
Air source heat pumps
The most common UK choice. Cost, running costs, and pros and cons.
Ground source heat pumps
Higher efficiency, ground loops vs boreholes, and the grant.
Air to air heat pumps
Warm-air units that also cool, vs air to water systems.
Can heat pumps cool?
Which types cool, how they compare to air conditioning.
How much do heat pumps cost in the UK?
A typical air source heat pump system costs £8,000–£12,000 fully installed in 2026. After the Boiler Upgrade Scheme (BUS) grant of £7,500, the net cost can be as low as £500. Ground source costs more (£15,000–£25,000) but runs more efficiently. On running costs, an air source heat pump typically costs £500–£900 a year to run in an average 3-bed home, below oil, gas or electric storage heating.
Full cost and running-cost breakdown
See the component-by-component price breakdown, running costs by fuel type, and payback periods.
Heat pump cost guide →Get a quote for a heat pump installation
Compare prices from MCS-certified installers. Free, no obligation.
Get a Quote →Boiler Upgrade Scheme (BUS) grant
The Boiler Upgrade Scheme provides a grant of £7,500 for both air source and ground source heat pumps in England and Wales. It is applied as a discount at the point of installation by your MCS-certified installer. Your home must be an existing building with a valid EPC and adequate insulation, and Scotland has its own grants and interest-free loans on top.
Grants, eligibility and Scotland schemes
See full eligibility rules, how to claim, and the grants available across the UK including Home Energy Scotland.
Heat pump grants guide →Heat pump installation: what to expect
A heat pump install runs from an EPC assessment and home survey through to a heat loss calculation, system design, the install itself (typically 2 to 3 days for air source), commissioning, and the installer applying the grant. The survey is where your installer works out the right size and whether any radiators need upsizing.
The full installation process and timeline
See each step in detail, how long an install takes end to end, and what your installer checks during the survey.
Heat pump installation guide →Is your home suitable for a heat pump?
Heat pumps work best in well-insulated homes (EPC C or better). Older homes may need insulation upgrades first. Underfloor heating is ideal, but oversized radiators also work well. See our EPC upgrades guide and heat pump radiators for advice on preparing your home.
Heat pumps and EPC rating
Installing a heat pump typically improves your EPC rating by 2–3 grades. A home going from an oil boiler to a heat pump might jump from D to B. This increases property value, each EPC grade improvement adds approximately £5,000–£10,000 to home value.
See our EPC upgrades guide for more on improving your home's energy rating.
Heat Pump FAQ
How long do heat pumps last?
15–20 years, which is longer than oil or gas boilers (12–15 years). Heat pumps have fewer moving parts and require less maintenance. An annual service is recommended, costing around £100–£150.
Do heat pumps work in UK winters?
Yes. Modern heat pumps work efficiently down to -15°C. The UK's mild winters (rarely below -5°C) are ideal, and performance drops only slightly in very cold weather. See do heat pumps work in winter.
Can I keep my radiators with a heat pump?
Yes. Air-to-water heat pumps work with existing radiators, though some may need upsizing because heat pumps run at lower flow temperatures (35–45°C vs 60–70°C for boilers). See heat pump radiators.
How noisy are heat pumps?
Modern air source heat pumps produce around 40–60 dB close to the unit, similar to a fridge, and must stay under 42 dB at the neighbour's boundary. See are heat pumps noisy.
Do heat pumps need planning permission?
Generally no for residential installations. The outdoor unit must be at least 1 metre from the boundary and meet noise limits. Listed buildings and apartments may need permission. Ground source heat pumps with boreholes are exempt for residential use.
Can I use a heat pump with solar panels?
Yes. Solar panels can power your heat pump during the day, reducing running costs further. A 4kWp solar system can cover 40–60% of a heat pump's electricity consumption. See our solar vs heat pumps comparison.
What is the payback period for a heat pump in the UK?
5–8 years when replacing oil, 8–12 years when replacing gas. After the BUS grant, a heat pump replacing oil in an average 3-bed home saves £1,000–£1,500/year on heating costs.
Should I get a heat pump or solar panels first?
If you're on oil or solid fuel, prioritise the heat pump, the savings are larger. If you're on gas, solar panels may have faster payback. Ideally, install both for maximum energy savings. See our comparison guide.
Find a Heat Pump Installer
Browse MCS-certified heat pump installers in your area. Compare reviews and request free quotes.
Heat Pump Brands Reviewed
Independent UK reviews of the main air source heat pump brands, covering SCOP, warranty, flow temperature capability and installed pricing.
Heat Pump Guides
Dig into the detail with our in-depth heat pump guides, covering costs, types, installation, grants and running costs for UK homes.
Related Guides
Air Source Heat Pumps
Cost, best brands, running costs, and pros and cons for UK homes.
Heat Pump Cost
Full price breakdown by type and home size, plus running costs.
Are Heat Pumps Worth It?
Honest verdict by home type, running costs, payback and pros and cons.
Heat Pump Installation
The process, timeline, and cost of installing a heat pump.
Ground Source Heat Pumps
Cost, efficiency, ground loops vs boreholes, and the £7,500 grant.
Heat Pump vs Boiler
Cost, running costs, lifespan and carbon compared, plus hybrids.
Heat Pump Grants
The £7,500 Boiler Upgrade Scheme, Scotland grants, and 0% VAT.
Heat Pump Brands
Vaillant, Daikin, Mitsubishi, NIBE and more compared for UK homes.
Sources
- GOV.UK: Boiler Upgrade Scheme (BUS)
- MCS: Certified Products & Installers
- Ofgem: Boiler Upgrade Scheme
- GOV.UK: Energy Performance Certificates (EPC)
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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