You want to know how much an air source heat pump really costs in the UK. Here's the simple answer.
Most UK homes pay around £8,000–£15,000 before the grant, and about £500–£7,500 after the £7,500 grant.
What You'll Actually Pay: Full Breakdown
| What You're Paying For | Typical Cost |
|---|---|
| Heat pump system (outdoor + indoor unit) | £5,000 – £9,000 |
| Labour (installation team for 2-3 days) | £2,000 – £3,000 |
| Extras (radiators, hot water cylinder, electrical work) | £1,000 – £3,000 |
| Total Before Grant | £8,000 – £15,000 |
| Government Grant | -£7,500 |
| What YOU Actually Pay | £500 – £7,500 |
The exact cost depends on your home's size, how well it's insulated, and whether you need extras like new radiators or a hot water cylinder. Learn more about the £7,500 grant.
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Why Does the Cost of an Air Source Heat Pump Vary?
Not every home costs the same to fit with a heat pump. Here's what makes the price go up or down:
Your Home's Size
A bigger house needs a bigger heat pump. A small 2-bed flat might only need a 5kW system (around £8,000). A large 4-bed house might need a 12kW system (around £13,000).
Your Current Heating System
If you've got a combi boiler now, you'll need a hot water cylinder (adds £800-£1,500). If you already have a cylinder, that's one less thing to buy.
Your Radiators
Heat pumps work best with bigger radiators. If yours are tiny, you might need to upgrade a few (£150-£300 each).
Your Insulation
Poorly insulated homes lose heat fast. You might need loft insulation (£300-£700) or cavity wall insulation (£1,000-£2,000) first.
Where You Live
London and the South East cost more (10-20% higher). In Manchester, costs are often lower – see our Manchester guide. Scotland and Northern England are usually cheapest.
Running Costs: Heat Pump vs Gas Boiler
The upfront cost is higher, but what about your energy bills? Here's the simple truth.
⚡ Gas Boiler
Gas is cheap but boilers waste lots of energy. For every £1 of gas you burn, you get about £0.90 worth of heat. The rest goes out the flue.
Typical Annual Cost
£800 – £1,200
🌡️ Heat Pump
Electricity costs more per unit, but heat pumps are super efficient. For every £1 of electricity, you get £3-£4 worth of heat. Magic? No, just physics.
Typical Annual Cost
£700 – £1,100
Bottom line: If your home is well insulated, a heat pump will usually cost about the same to run as a gas boiler, sometimes a bit less. If your home is poorly insulated, a heat pump will cost more to run.
Is an Air Source Heat Pump Worth It?
With costs ranging from £500 to £7,500 after the grant, is it actually worth getting one? Here's when it makes sense and when it doesn't.
✓ It's Worth It If:
- •Your gas boiler is old and needs replacing soon anyway
- •You qualify for the £7,500 grant (most homeowners do)
- •Your home has decent insulation (loft, cavity walls, double glazing)
- •You're planning to stay in your home for 10+ years
- •You want to future-proof (gas boilers are being phased out by 2035)
✗ It's Probably Not Worth It If:
- •Your gas boiler is only a few years old and works perfectly
- •Your home has poor insulation (single glazing, no loft insulation)
- •You're planning to move in the next 5 years
- •You don't qualify for the grant
- •You're expecting massive savings immediately (payback takes time)
Want a detailed breakdown of whether it's worth it for your situation? Read our honest analysis here.
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How to Get the Cheapest Air Source Heat Pump Installation
You can save thousands by being smart about how you buy. Here's what to do:
Get at Least 3 Quotes
Prices vary loads between installers. One might quote £9,000, another £13,000 for the exact same job. Always compare.
Use the £7,500 Grant
The Boiler Upgrade Scheme gives you £7,500 off. Your installer applies for it – you don't have to do anything. Learn how it works.
Only Use MCS-Certified Installers
You need an MCS installer to get the grant anyway. Plus they're properly trained and follow quality standards. Find MCS installers here.
Book in Spring or Summer
Installers are quieter in May-August. You'll get better prices and faster installation. Everyone panics in October when winter's coming.
Don't Pick the Cheapest Quote Automatically
Sometimes cheap = corners cut. Look at reviews, check their experience, make sure they include everything in the quote (no hidden extras).
Questions to Ask When Getting Quotes
Make sure you ask these questions to understand the real cost:
Does this quote include EVERYTHING? (VAT, labour, grant application, electrics, scaffolding if needed)
What brand of heat pump are you installing? (Daikin, Mitsubishi, and Vaillant are reliable)
What warranty comes with it? (You want at least 5 years on parts and labour)
Will I need new radiators or a hot water cylinder? (Get it in the quote upfront)
How many heat pumps have you actually installed? (You want someone with proper experience)
Can I see examples of your previous work? (Photos or addresses of nearby jobs)
The Bottom Line on Air Source Heat Pump Costs
Quick Summary
- →Typical cost: £8,000 – £15,000 before grant
- →After £7,500 grant: Most pay £500 – £7,500
- →Running costs similar to gas boilers if your home is well insulated
- →Get 3 quotes from MCS installers to find the best price
- →Book in spring/summer for better prices
- →Worth it if your boiler needs replacing anyway and you qualify for the grant
Yes, it's more expensive than a new gas boiler. But with the grant, rising gas prices, and the fact that gas boilers are being phased out by 2035 anyway, it makes sense for more and more people.
The key is getting multiple quotes, checking everything's included, using an MCS installer, and claiming that £7,500 grant. Those four things will save you thousands.