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Thinking of getting a heat pump? It’s an excellent means of lowering your gas bill and your carbon footprint. Heat pumps don’t consume fuel like a boiler does; they extract heat from outside air and use it to warm your building. This cuts carbon emissions and, in most cases, your bill.
But what does it cost? In the UK, the installation of an air source heat pump costs anywhere between £8,000 and £15,000, depending on the size of your home and how much heat it needs.
That’s a big price, but the good news is that the Boiler Upgrade Scheme saves £7,500 from the price, so the heat pumps are now far more affordable for families.
Air Source Heat Pump Efficiency in the UK
Air source heat pumps are efficient at between 300% and 400%. It is like this: for each 1 unit of electricity consumed, they will deliver between 3 and 4 units of heat. A comparison with a gas boiler, though, reveals a gas boiler being only about 90% efficient, with some energy lost.
Most heat pumps are 3 or 4 COP, which is 3 to 4kWh of heat for 1kWh of electricity. Efficiency will also be influenced by external temperature, insulation, and the layout of the heating system. The better the insulation on your home, the better a heat pump will work.
Check your Eligibility Now
If you are receiving benefits from the UK Government then you might be eligible for free insulation grants.
Cost of Air Source Heat Pumps
A UK average cost of an air source heat pump varies from £8,000 to £15,000 but will also be based on the model, the size, and the installation required.
- Heat pump system only: £2,500 – £12,000
- Installation cost: £5,000 – £8,000
- Total cost (installation included): £8,000 – £15,000
For a 3-4 bedroom house, the price would be about £10,500 – £13,500. Air-to-air heat pumps are cheaper but they only provide heating and cooling. Air-to-water heat pumps are pricey but offer central heat and hot water, and are therefore most sought after in UK homes.
Below is a rough estimate of the price break-up:
| Home Size | Type | Heat Pump Size | Total Cost (Including Installation) |
|---|---|---|---|
| 1 Bedroom | Air-to-air | 7kW | £4,000 – £6,000 |
| 1 Bedroom | Air-to-water | 4kW | £8,000 – £9,500 |
| 2–3 Bedrooms | Air-to-air | 9kW | £6,500 – £8,000 |
| 2–3 Bedrooms | Air-to-water | 12kW | £12,000 – £14,000 |
| 4–5 Bedrooms | Air-to-air | 11kW | £9,000 – £10,500 |
| 4–5 Bedrooms | Air-to-water | 16kW | £15,000 – £17,000 |
How Does This Compare to Other Heat Pumps?
Ground-source heat pumps: £10,500 – £37,000 (more expensive as the pipes are buried underground).
Hybrid heat pumps or high-temperature heat pumps: £7,500 – £11,000 (installed for homes that require warmer water.
Depending on the amount of heat your property requires, the standards of insulation, and whether you want other works such as bigger radiators or underfloor heating, will be the actual cost.
Factors Affecting Air Source Heat Pump Cost
The price of an air source heat pump is influenced by a broad spectrum of factors. Some are:
1. Property Size
Larger properties will demand larger-powered heat pumps, which cost more. A flat may only necessitate a 4kW system, but a poorly insulated four-bedroom property may demand a 16kW system.
2. Heat Pump Type
Air-to-air heat pumps are less expensive (£4,000–£9,500) but only provide heating and cooling.
Air-water heat pumps are more costly (£8,000–£16,500) but may be combined with radiators and underfloor heating to supply hot water.
3. Efficiency and Performance
Heat pumps operate with a Coefficient of Performance (COP), a value that specifies the amount of heat delivered as a percentage of electricity used.
- A COP value of 3.0 shows the pump supplies 3 kW of heat per 1 kW of power input.
- High-COP units cost more but pay for themselves in the long run.
4. Quality of Insulation
A well-insulated building holds heat, so a cheaper, smaller heat pump will work perfectly. More heat will escape through poor insulation, so a bigger unit and higher running costs will be required.
Insulation prior to a heat pump installation will be money well spent. Cavity wall insulation will cost £950–£4,600, and loft insulation will be £650–£1,200.
5. Radiator Upgrades
Heat pumps operate at a lower temperature than gas boilers. This means your current radiators may not provide enough heat with it. Replacing ten radiators will cost between £3,000. Underfloor heating makes air-to-water systems ideal because it dissipates heat better.
6. Heat Pump Brand
Luxury models offer greater performance, best efficiency, and an extended warranty but at a higher price. A strong brand with a solid reputation can deliver lasting reliability and more savings in the long term.
7. Grants Available
The Boiler Upgrade Scheme offers up to a maximum £7,500 grant for the price of a heat pump. There are other grants in certain areas. While the ECO4 scheme can cover the 100% cost of the heat pump.
Heat Pump Installation Process
The standard heat pump installation procedure can be as follows:
1. Home Assessment
A professional will visit your property to check if a heat pump will be effective. He will check your radiators, insulation, and your current system. If any upgrades are needed (like more radiators or higher insulation), they will advise you on these prior to installing it.
2. Selecting the Right Heat Pump
Depending on the amount of heat your house will need, the installer will provide you with a suitable air-to-air, or air-to-water heat pump. They’ll advise on the optimum outdoor and indoor unit positioning as well.
3. Getting Your House Prepared
You can expect to have larger radiators, improved pipes, and more insulation before your heat pump is installed in order to accommodate the increased efficiency. These upgrades augment the heat pump when it’s running.
4. Having the Heat Pump Installed
The outdoor unit is mounted outside, likely on the ground or a building wall. It takes heat away from the air.
- The indoor unit connects to your heating system and distributes warm air or hot water.
- New pipes or radiators are fitted, if necessary, to provide proper heating.
5. Connecting and Testing
With all the pieces installed, the system is hooked up to electricity and leak-tested. Tests are performed to ensure the heat pump functions well.
6. Final Adjustments and Handover
Following the installation, the system settings are optimized for the highest performance. The installer will provide you with information on how to use and care for your heat pump for optimal energy savings.
How Much Does It Cost to Install a Heat Pump in the UK?
What the UK heat pump installation will cost you depends on the size of your property, how well-insulated your property is, and the level of installation complication.
Although prices are as much as £8000, thanks to the £7,500 Boiler Upgrade Scheme grant, the upfront cost can be substantially lowered with some families paying as little as £499.
But the vast majority of homes require some further work—such as replacing pipework, insulation, or radiators—to make the heat pump function efficiently. This leaves the average cost in 2025 at about £6000 after taking the upgrades into consideration.
Labour Costs for Heat Pump Installation
Labour will be a significant contributor to the total expense. Based on the scale of your property and the extent of the work, labour alone can cost between £3,500 to £6,000.
Estimated Installation Costs by Property Type
| Home Size | Installation Time | Estimated Cost |
|---|---|---|
| Small home (2-bed semi) | 2-3 days | £3,500 – £4,500 |
| Medium home (3-bed semi) | 3 days | £4,200 – £6,500 |
| Large home (5-bed detached) | 3-5 days | £6,000+ |
Cost of Running a Heat Pump
Running a heat pump will be cheaper than using oil or electricity for heating but will be more costly than a gas boiler. It will cost between £830 and £1,600 per annum, depending on the energy load of your property.
What Affects Heat Pump Running Costs?
- Problems with Insulation: A well-insulated house retains heat well so the pump does not have to work so hard. Loft, cavity wall, and floor insulation can be cost-saving.
- Radiators and Underfloor Heating: A low-temperature radiator or underfloor heating system is ideal for heat pumps. It can range between £3,600 – £9,000 if your house isn’t already set up for this.
- Other Energy Sources: Solar panels can be fitted in a bid to cut bills on electricity, and the heat pump becomes even more economical to operate.
Air Source Heat Pump Maintenance Costs
Similar to boilers, heat pumps will need servicing on occasion in order to be effective. A heat pump that’s not serviced will consume as much as 25% more power and have more expensive bills.
Average Servicing Cost
- Annual servicing: £150 – £300
- Expensive repairs (if any): Varies but servicing prevents expensive problems
- Lifespan: Well-maintained heat pumps last 20+ years (versus 10-15 years for gas boilers)
What’s Included in a Heat Pump Service
- Cleaning the evaporator – Ensures airflow.
- Inspecting the fan & system filter – Prevents low water quality.
- Monitoring refrigerant levels and settings – Guarantees efficiency.
So, What’s the Average Cost of an Air Source Heat Pump in the UK in 2025?
It costs around £8,000 to install a standard air source heat pump in 2025 but with the £7,500 Boiler Upgrade Scheme grant, it only costs homeowners as little as £500.
Operating expenses are slightly greater than with gas boilers but heat pumps last longer, more efficiently use fuel, and lower carbon emissions, making them a smart long-term option.
Heat Pump Government Grants in the UK
If you are looking at installing a heat pump, government grants exist that will fund much of the expense. There are two schemes that are worth considering:
1. ECO4 Scheme
ECO4 is a government scheme that assists low-income homes with the upgrade to more efficient heating, such as free air source heat pumps in some instances. You will often have to be on special benefits or have a low income. This scheme may also cover insulation upgrades to make your home more efficient. It covers 100% of the cost for the eligible households.
2. Boiler Upgrade Scheme
The Boiler Upgrade Scheme provides a grant of £7,500 to install an air source heat pump. Homeowners replacing an existing gas, oil, or electric boiler with a replacement one are eligible for the scheme.
The Bottom Line
Yes, if your oil boiler is old or inefficient, now is the best time to upgrade. Government grants can cover most or all costs. Oil boiler grants UK may not support new oil systems anymore. But oil boiler replacement grants help switch to heat pumps, biomass, or gas boilers.
The eco4 scheme, boiler upgrade scheme, and British Gas free boiler scheme all support these changes. By switching, you lower heating bills and help the environment. Don’t wait—check your eligibility today.
Frequently Asked Questions
Yes, provided your property is well-insulated. Heat pumps can save bills, last longer than gas boilers, and help cut carbon emissions.
These could be costly to install, such as well-insulated houses, and call for larger radiators or underflooring for optimum efficiency.
Heat pumps are expensive as they have complicated installation, labour, and other upgrade pieces such as insulating or replacing radiators. Grants such as ECO4 and BUS make it accessible.
Not quite! Although electricity prices are costly, heat pumps are an efficient use of energy, so they are cheaper to operate than electric or oil heating.
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