Heat Pump Cost UK (2026)
Last updated 5 October 2026 · Prices based on the Ofgem price cap (October 2026 – December 2026)
Heat pump prices depend mostly on the size of the unit your home needs, whether radiators and the hot water cylinder must change, and the type of system. This guide gives realistic installed prices by property size and links to the grant checker and running-cost calculator.
Heat pump vs gas boiler running cost calculator
Gas boiler: £1,042 a year. Heat pump: £1,009 a year. Heat pump saves about £33 a year.
- Gas boiler / year
- £1,042
- Heat pump / year
- £1,009
- Difference
- −£33
Boiler: 11500 kWh ÷ 88% × 7.97p. Heat pump: 11500 kWh ÷ SCOP 3 × 26.32p.
Heat pump installed cost by property size (before grant)
| Property | Air source | Ground source | After BUS grant (air source) |
|---|---|---|---|
| 2-bed flat / terrace | £8,000–£10,000 | £18,000–£22,000 | £500–£2,500 |
| 3-bed semi | £10,000–£12,000 | £22,000–£28,000 | £2,500–£4,500 |
| 4-bed detached | £12,000–£14,000 | £26,000–£35,000 | £4,500–£6,500 |
What's included in a typical quote
| Item | Typical cost |
|---|---|
| Heat pump unit (5–12kW) | £3,500–£7,000 |
| Hot water cylinder | £1,200–£2,000 |
| Radiator upgrades | £0–£3,000 |
| Pipework, controls, labour | £2,000–£4,000 |
| Heat loss survey & MCS paperwork | Usually included |
What affects the cost
Heat loss of your home
Determines the unit size; insulation first can mean a smaller, cheaper pump.
Radiators
Heat pumps run cooler, so some radiators may need to be larger.
Hot water cylinder
Combi-boiler homes need space for a cylinder.
System type
Ground source needs trenches or boreholes, doubling the cost.
Installer and region
London and the South East are typically 10–15% higher.
What a complete heat pump installation costs
The headline price should cover more than the outdoor heat pump. A complete quote can include the unit, cylinder, controls, circulation pumps, pipework, electrical work, system flushing, commissioning and the paperwork needed for the Boiler Upgrade Scheme. It should also include a room-by-room heat loss calculation and an explanation of the proposed design temperatures. Air source systems are normally the least expensive because the installer can place a fan unit outside without excavating a garden. Ground source systems add collectors: either horizontal pipes in trenches or vertical loops in boreholes. Excavation, drilling, access and reinstatement account for much of the difference between the two price ranges. The table above is a planning guide, not a quote. Two homes with the same bedroom count can need very different systems. A compact, insulated terrace may have a modest heat loss, while an exposed detached house with solid walls and extensions may need a larger unit, more radiator work and new pipework. Compare quotes by specification and predicted performance, not just by price.
Why a heat loss survey matters
A heat pump should be sized from the heat each room loses on a cold design day. The survey considers floor area, walls, roof, windows, ventilation and local design temperature. This produces a room-by-room heat requirement and a whole-home peak load. Bedroom count or the output of the old boiler is not a reliable substitute; boilers are often oversized. Oversizing can raise the purchase price and cause frequent cycling in mild weather. Undersizing can leave the home relying on expensive backup heat during cold spells. The installer should explain the assumptions and show how the selected unit meets the calculated load. Insulation can reduce the required output, but a home does not need to be a new build before a heat pump can work. Address obvious, cost-effective heat loss first: loft insulation, uncontrolled draughts and suitable cavity insulation are common examples. Improvements should be reflected in the design calculation. Do not accept vague promises that a larger heat pump can compensate for an unexplained survey.
Radiators, pipework and flow temperature
Heat pumps are most efficient when they circulate water at a lower temperature than a traditional boiler. To deliver enough heat at that temperature, some rooms may need larger radiators, double-panel radiators or underfloor heating. This does not mean every radiator must automatically be replaced. The room calculation should show the output required and what each existing emitter can provide at the proposed flow temperature. Older small-bore pipework can sometimes restrict flow and may need selective or wider replacement. That work increases cost and disruption, particularly where floors must be lifted. Ask the installer to identify it before the contract rather than treating it as an open-ended extra. Compare the design flow temperature between quotes. A system designed for a lower temperature will generally operate more efficiently when emitters and controls are properly sized. Weather compensation should adjust it as outdoor conditions change.
Hot water cylinders and available space
Most air-to-water and ground source heat pumps supply domestic hot water through a cylinder. A home currently using a combi boiler may need to create space in an airing cupboard, utility room, loft or garage. The cylinder must be suitable for the heat pump and sized for the household's hot-water demand. Water is normally stored hot enough for everyday use and periodically raised to a higher temperature for hygiene, often using an immersion heater. That cycle should be included in the control setup. Ask how quickly the cylinder reheats, what happens when several showers are taken, and whether the proposed location affects pressure or pipe runs. Limited cylinder space can change the viable system design. It is better to resolve this during survey than after equipment has been ordered. The quote should show whether the cylinder, immersion, valves and associated plumbing are included, and who will remove the old boiler or tanks.
Boiler Upgrade Scheme grant and upfront payment
The Boiler Upgrade Scheme currently contributes £7,500 towards an eligible air source or ground source heat pump in England and Wales. The customer does not normally receive the grant as cash. An MCS-certified installer applies and deducts it from the amount charged, subject to the scheme's rules and approval. Treat “after grant” prices as conditional until the installer confirms eligibility. Check that the quotation states the full installation price, grant deduction and balance you must pay. Also check deposits, staged payments, cancellation terms and what happens if the grant application is unsuccessful. The grant reduces capital cost but does not prove that a quote offers value or that a design will run efficiently. Obtain comparable proposals from several certified installers. Funding rules can change, so use the linked GOV.UK source and grant checker for current conditions before signing.
Heat pump running costs compared with gas
A heat pump's running cost depends on its seasonal coefficient of performance, or SCOP. At the shared planning assumption of SCOP 3, each unit of electricity delivers about 3 units of heat over a year. At the current electricity rate, that works out at roughly 8.8p per kWh of useful heat. A gas boiler at 88% efficiency costs about 9.1p per kWh of useful heat at the current gas rate. Those figures are close, so system design and tariff choice matter. A strong SCOP, lower-priced heat-pump electricity or removal of the gas standing charge can make the heat pump cheaper. High flow temperatures, poor controls or extensive backup-heater use can make it dearer. The calculator above lets you test heat demand and efficiency rather than assuming one universal saving. Compare annual costs on the same basis. Include space heating and hot water, realistic efficiencies and standing charges that remain after the change. If gas is kept for cooking or a fire, its standing charge is not saved. Heat pumps usually run for longer periods than boilers but at a lower output; runtime alone does not indicate high consumption.
How to compare installer quotes
Ask each installer to quote against the same brief and provide the heat loss calculation, unit model and output, design flow temperature, expected seasonal performance, emitter schedule and cylinder specification. The proposal should identify every radiator and pipework change rather than using an undefined allowance. Check electrical requirements, outdoor-unit position, noise assessment, condensate drainage, planning considerations, warranties and aftercare. Confirm whether servicing is required to maintain the warranty and who will optimise settings after the first heating season. Ask for an annual consumption estimate with its assumptions, not a guaranteed saving. Be cautious if a salesperson sizes by floor area alone, promises a fixed bill reduction without analysing present use, or pressures you to sign before design work is available. MCS certification is necessary for the grant, but you should still examine design quality, insurance-backed protection, customer references and the detail of the contract.
How to reduce the cost
- Get a room-by-room heat loss survey
- Compare at least three MCS-certified installers
- Insulate the loft and cavity walls first
- Apply for the Boiler Upgrade Scheme through your installer
- Ask about heat pump tariffs to cut running costs
Frequently asked questions
How much does a heat pump cost in the UK?
£8,000–£14,000 for air source and £18,000–£35,000 for ground source, before the £7,500 Boiler Upgrade Scheme grant.
Is a heat pump cheaper to run than a gas boiler?
At SCOP 3 it costs about 8.8p per kWh of heat versus 9.1p for gas — similar, with savings if you drop the gas standing charge or use a heat pump tariff.
How long do heat pumps last?
Air source heat pumps typically last 15–20 years; ground source loops 50+ years.
Do I need new radiators?
Not always. A heat loss survey shows which rooms need larger emitters.
Do heat pumps work in cold weather?
Yes. Modern units work down to −20°C, though efficiency falls in very cold spells.
Will a heat pump add value to my home?
It can improve your EPC rating, which buyers increasingly look at.
How long does a heat pump installation take?
A straightforward air source installation may take several working days, while extensive radiator, pipework or ground-loop work takes longer. The installer should provide a property-specific programme.
Should I insulate before installing a heat pump?
Complete sensible low-cost improvements first where possible. Better insulation reduces heat demand and may allow a smaller system, but suitability should be decided from a heat loss survey rather than a blanket rule.
Can a heat pump provide all my hot water?
Yes, an air-to-water or ground source system can heat a suitable cylinder. The cylinder must be correctly sized, and the controls normally include a periodic higher-temperature hygiene cycle.
Sources and methodology
Energy prices come from the Ofgem price cap for Direct Debit customers (GB average). Installation costs are typical UK ranges from installer quotes and industry guidance, rounded. Savings use today's rates and do not predict future prices.