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. The ground source heat pump cost calculator estimates GSHP capacity and running costs from your property size, garden area and ground type.

Boiler Upgrade Scheme (BUS) Grant

The UK government Boiler Upgrade Scheme provides £7,500 towards an air-source or ground-source (or water-source) heat pump, and £5,000 towards a biomass boiler (biomass eligibility is restricted to rural, off-gas-grid properties). The grant is paid directly to your MCS-certified installer and deducted from the quote.

• Available for existing homes in England and Wales
• Must be installed by an MCS-certified installer
• Property must have a valid EPC (no outstanding loft or cavity insulation recommendations)
• Replaces an existing fossil-fuel heating system
• Scheme runs until March 2028

Running Costs

• ASHP: ~£800–1,200/year (electricity at 26.11p/kWh, COP 3.5)
• Gas boiler: ~£800–1,100/year (gas at 7.33p/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