Free Guide · Updated 2026
The Complete Guide to Heat Pump Costs in the UK (2026)
Everything you need to know before getting a quote – including the £7,500 Boiler Upgrade Scheme grant, installed costs, running costs versus gas, and whether a heat pump is right for your home or business.
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What is heat pump
What is a heat pump and how does it work?
A heat pump is a low-carbon heating system that extracts heat from the air or ground and uses electricity to amplify it, delivering efficient heating and hot water. It works on the same principle as a refrigerator – but in reverse.
The key metric is the Coefficient of Performance (COP): for every unit of electricity consumed, a heat pump delivers 3–4 units of heat. A gas boiler is at best 90% efficient. This efficiency advantage is why heat pumps are central to the UK’s decarbonisation strategy.
Heat pump installation costs UK 2026
How much does a heat pump cost in 2026?
Typical installed costs for air source heat pumps before and after the £7,500 BUS grant. 0% VAT applies to all qualifying installations until March 2027.
| System Size | Property Type | Before Grant | After £7,500 Grant | Annual Running Cost |
|---|---|---|---|---|
| 6–8kW ASHP | 2–3 bed semi | £8,000–£12,000 | £500–£4,500 | £995–£1,125/yr |
| 8–12kW ASHP | 3–4 bed detached | £10,000–£15,000 | £2,500–£7,500 | £1,100–£1,400/yr |
| 12kW+ ASHP | Large home / commercial | £14,000–£20,000 | £6,500–£12,500 | Quote required |
| Ground Source | Detached with garden | £20,000–£35,000 | £12,500–£27,500 | Lower than ASHP |
| ASHP + Solar 4kW | Any — best combination | £18,000–£25,000 | £10,500–£17,500 | £400–£700/yr |
Useful benchmark: The combination of a heat pump with a 4kW solar system offsets up to 60% of the heat pump’s electricity use. Combined systems can save £1,250–£2,100 per year — the most effective whole-home energy upgrade available in 2026.
The £7,500 Boiler upgrade scheme grant
The £7,500 Boiler Upgrade Scheme grant - how to claim it
The Boiler Upgrade Scheme (BUS) offers £7,500 toward the cost of an eligible air source or ground source heat pump installation in England and Wales. This grant is applied directly to your installer’s invoice – your installer applies on your behalf.
To receive SEG payments you need:
01.
The property must be in England or Wales
02.
The property must have a valid Energy Performance Certificate (EPC)
03.
The EPC must have no outstanding recommendations for loft or cavity wall insulation
Scotland: The Home Energy Scotland grant provides up to £7,500 for heat pumps plus an additional £6,000 loan. Wales: The Nest scheme provides free energy efficiency improvements for eligible Welsh households. Northern Ireland: The Renewable Heat Incentive (RHI) provides ongoing payments for renewable heat generated.
Heat pump vs gas boiler running costs
Is a heat pump cheaper to run than a gas boiler?
This is the most important and most misunderstood question about heat pumps. The honest answer: it depends on your home, your insulation, your tariff, and your system design.
| Heating System | Annual Running Cost - 3-bed Semi 2026 | Notes |
|---|---|---|
| New A-rated gas boiler | £1,035–£1,070 | Ofgem price cap rates Q2 2026 |
| Well-installed air source heat pump | £995–£1,125 | Top-performing homes: £855 |
| Poorly installed heat pump | £1,400–£1,700 | Wrong size, inadequate radiators |
| Heat pump + solar + smart tariff | £400–£700 | Best case - combined system |
Is my home suitable for a heat pump
Is my home suitable for a heat pump?
Insulation
Heat pumps work at lower flow temperatures than gas boilers — 35–55°C vs 70–80°C. In a well-insulated home this is sufficient. In a poorly insulated home the heat pump has to work harder. Loft insulation, cavity wall insulation, and draft-proofing before installation are strongly recommended.
Radiators
Standard-sized radiators may not deliver enough heat at heat pump flow temperatures. Larger radiators or underfloor heating may be needed — typically £2,000–£4,000 additional cost. Your matched installer will assess this during their free survey.
Outdoor Space
Air source heat pumps require an outdoor unit positioned outside the property. Planning permission is not usually required for residential properties — but check if you are in a conservation area or have a listed building.
How it works
From quote to installation in four steps
No cold calls. No pressure. One vetted installer matched to you.
How to choose a solar installer
10 questions to ask your solar installer before signing anything
A reputable MCS-certified installer will answer all of these clearly and in writing. If any question is deflected or the answer is vague — that is useful information.
01.
Are you MCS certified for heat pump installation?
06.
Will you handle the BUS grant application on my behalf?
02.
What size heat pump do you recommend for my property, and how did you calculate this?
07.
What SCOP (Seasonal Coefficient of Performance) do you estimate for my home?
03.
Will I need to upgrade my radiators? What is the cost?
08.
What smart tariff do you recommend alongside the heat pump?
04.
Do I need a hot water cylinder, and is this included in the quote?
09.
Do you offer post-installation monitoring and a commissioning service?
05.
What brand of heat pump are you supplying and what is the warranty?
10.
10. What is your experience with properties similar to mine?
You should receive a detailed, written quote covering all of the above.
A quality installer is transparent about every element of the job before you commit.
Heat pumps for landlords and businesses
Heat pumps for landlords and businesses
- EPC minimum rating requirements for rental properties are tightening — heat pumps significantly improve EPC ratings
- Commercial properties can claim Enhanced Capital Allowances on heat pump installations
- The BUS grant is available for rental properties as well as owner-occupied homes
- Solar and heat pump combination systems are particularly effective for commercial properties with high daytime energy use
- Heat pump installation raises property values by up to 3% in some markets
Testimonials
What Our Clients Say
Real Heat Pump installation quotes – and what happened next
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FAQs
Yes, but a combi boiler system will need a hot water cylinder installed alongside the heat pump. This adds cost but provides larger hot water capacity. Your matched installer will include this in their survey and quote.
Yes. Modern air source heat pumps operate efficiently in temperatures as low as -20°C. The UK’s relatively mild climate actually makes heat pumps more effective here than in many colder European countries with very high heat pump adoption rates.
Yes. The BUS grant for heat pumps is independent of whether you have solar panels. The combination of solar and heat pump is highly recommended and produces the greatest annual savings.
Most air source heat pump installations take 2–3 days. More complex installations requiring radiator upgrades or new pipework may take 3–5 days. Your matched installer will confirm timelines at survey stage.
Many modern air source heat pumps can run in reverse to provide cooling — similar to air conditioning. Confirm with your installer whether the model they recommend includes this feature, as it varies by unit.
COP (Coefficient of Performance) measures efficiency at a single temperature point. SCOP (Seasonal Coefficient of Performance) measures average efficiency across a full heating season — a more accurate indicator of real-world running costs. A good ASHP should achieve an SCOP of 3.0 or above in UK conditions.
Contact us and we will arrange an alternative match at no cost. We stand behind every installer in our network — if one is not right for your situation, we will find one who is.
A heat pump installation typically improves your EPC rating by one to two bands — from D to C or C to B in many cases. This is increasingly important for landlords under incoming Minimum Energy Efficiency Standards for rental properties.
