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 March 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
| Type | Cost (installed) | COP | Best For | BUS Grant |
|---|---|---|---|---|
| Air-to-Water | £8,000–£12,000 | 3.0–4.0 | Most UK homes, radiators/underfloor | £7,500 |
| Ground-to-Water | £15,000–£25,000 | 4.0–5.0 | Rural homes with garden space | £7,500 |
| Air-to-Air | £2,500–£4,500 | 3.5–4.5 | Single rooms, supplementary heating | Not eligible |
| Exhaust Air | £6,000–£9,000 | 3.0–3.5 | New builds, compact spaces | £7,500 |
Air-to-water is by far the most popular in the UK (~90% of installations). It works with existing radiators (ideally oversized) or underfloor heating.
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.
| Component | Cost Range |
|---|---|
| Air source heat pump unit | £4,000–£6,000 |
| Installation and labour | £2,500–£4,000 |
| Hot water cylinder (if needed) | £600–£1,200 |
| Radiator upgrades (if needed) | £800–£2,500 |
| Total before grant | £8,000–£12,000 |
| BUS grant | −£7,500 |
| Net cost after grant | As low as £500 |
Running cost comparison
| Heating System | Annual Cost (avg 3-bed) |
|---|---|
| Oil boiler | £1,500–£2,200 |
| Gas boiler | £1,000–£1,500 |
| Electric storage heaters | £1,800–£2,500 |
| Air source heat pump | £500–£900 |
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Get a Quote ↓Boiler Upgrade Scheme (BUS) grant
The Boiler Upgrade Scheme (BUS) provides a grant of £7,500 for air source and ground source heat pump installations in England and Wales.
| Technology | BUS Grant Amount |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump | £7,500 |
Eligibility requirements
- Property must be an existing building (not a new build)
- Must use an MCS-certified installer
- Heat pump must be MCS-certified
- A valid EPC (Energy Performance Certificate) is required
- Adequate insulation (loft and cavity wall) must be in place or installed as part of the project
The £7,500 BUS grant is applied directly as a discount at the point of installation by your MCS-certified installer. See the full grants guide for details.
Heat pump installation: what to expect
- EPC assessment to establish your home's baseline energy rating
- Home survey by installer (assess insulation, radiators, heat loss calculation)
- System design and sizing based on heat loss
- Installation (typically 2–3 days for air source)
- Commissioning and testing
- Post-installation EPC assessment
- BUS grant applied by installer
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 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 for heat pumps. Performance drops slightly in very cold weather, but they remain far more efficient than direct electric heating.
Can I keep my radiators with a heat pump?
Yes. Air-to-water heat pumps work with existing radiators. For optimal efficiency, radiators may need upsizing (larger surface area) because heat pumps run at lower flow temperatures (35–45°C vs 60–70°C for boilers). Underfloor heating is the most efficient option.
How noisy are heat pumps?
Modern air source heat pumps produce 40–50 dB at 1 metre, similar to a quiet conversation or a modern fridge. Planning guidelines require the outdoor unit to be placed to minimise noise impact on neighbours. Indoor noise is negligible.
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.
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Related Guides
Home Insulation
Loft, cavity wall, and solid wall insulation: costs, grants, and savings.
Solar vs Heat Pumps
Comparing two leading renewable technologies.
EPC Upgrades
Improve your EPC rating. Costs, grants, and property value impact.
Whole-House Retrofits
Whole-house energy upgrades with ECO4 and HUG2 schemes.
Sources
- GOV.UK: Boiler Upgrade Scheme (BUS)
- MCS: Certified Products & Installers
- Ofgem: Boiler Upgrade Scheme
- GOV.UK: Energy Performance Certificates (EPC)
Last updated: March 2026
John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He fact-checks all content against official MCS and Ofgem data and maintains relationships with MCS-certified installers across the UK.
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