What Does a Heat Pump Cost to Install?

Quick Answer

Air source £8,000–14,000. BUS grant £7,500. Ground source £15,000–35,000

Based on: Typical 3–4 bed UK home, including installation and commissioning

Air Source Heat Pump (ASHP) Costs

Small (5–7kW): £8,000–10,000 — 1–2 bed property
Medium (8–12kW): £10,000–12,000 — 3 bed semi
Large (12–16kW): £12,000–14,000 — 4–5 bed detached

Ground Source Heat Pump (GSHP) Costs

Horizontal trenches: £15,000–25,000
Vertical boreholes: £20,000–35,000

GSHPs are more efficient (COP 4–5 vs 3–4 for ASHP) but the ground works add significant cost.

Boiler Upgrade Scheme (BUS) Grant

The UK government Boiler Upgrade Scheme provides £7,500 towards an air-source or ground-source (or water-source) heat pump, and £5,000 towards a biomass boiler (biomass eligibility is restricted to rural, off-gas-grid properties). The grant is paid directly to your MCS-certified installer and deducted from the quote.

Available for existing homes in England and Wales
Must be installed by an MCS-certified installer
Property must have a valid EPC (no outstanding loft or cavity insulation recommendations)
Replaces an existing fossil-fuel heating system
Scheme runs until March 2028

Running Costs

ASHP: ~£800–1,200/year (electricity at 24.67p/kWh, COP 3.5)
Gas boiler: ~£800–1,100/year (gas at 5.74p/kWh, 90% efficient)
Oil boiler: ~£1,200–1,800/year

Running costs are similar to gas at current prices, but heat pumps benefit from falling electricity costs as renewables expand.

Additional Costs to Consider

Radiator upgrades: £1,500–4,000 (larger radiators for lower flow temperatures)
Hot water cylinder: £500–1,500 if not already fitted
Insulation improvements: Variable — recommended before installation