What Does a Heat Pump Cost to Install?

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 BUS grant provides £7,500 towards an air source or ground source heat pump (increased from £5,000 in October 2023). This is applied at the point of installation — you pay the reduced price.

• Available for existing homes in England and Wales
• Must be installed by an MCS-certified installer
• Property must have an EPC (any rating)
• Replaces an existing fossil fuel heating system

Running Costs

• ASHP: ~£800–1,200/year (electricity at 28p/kWh, COP 3.5)
• Gas boiler: ~£800–1,100/year (gas at 7p/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