Quick Answer
An air source heat pump costs £10,000–£20,000 installed. A ground source heat pump costs £20,000–£40,000. The government's Boiler Upgrade Scheme (BUS) provides a £7,500 grant, reducing air source costs to effectively £3,000–£12,500 for eligible homes in 2026.
Heat pump installation is one of the most significant home improvement investments a UK homeowner can make in 2026. The upfront cost is substantial, but with government grants available and long-term running cost savings, the numbers can work well for the right home. This guide breaks down every cost component, explains the BUS grant process, and helps you determine whether a heat pump is the right choice for your property.
In this guide
Air Source vs Ground Source Heat Pumps
| Factor | Air Source (ASHP) | Ground Source (GSHP) |
|---|---|---|
| Installation cost | £10,000 – £20,000 | £20,000 – £40,000 |
| After BUS grant | £3,000 – £12,500 | £13,000 – £32,500 |
| Installation disruption | Low (2–3 days) | High (ground excavation or boreholes) |
| Efficiency (COP) | 2.5–4.0 | 3.5–5.0 |
| Space required | Outdoor unit (wall/ground mounted) | Large garden or boreholes needed |
| Best for | Most UK homes | Large properties with garden space |
| Noise level | 45–55 dB (quiet) | Very quiet (internal unit only) |
| Lifespan | 20–25 years | 25–30 years |
| BUS grant available? | Yes – £7,500 | Yes – £7,500 |
For most UK homeowners, an air source heat pump is the practical choice — less disruptive to install, lower total cost, and suitable for the vast majority of properties. Ground source heat pumps are better for large rural properties with ample land. See our full comparison in heat pump vs gas boiler: honest cost comparison.
What's Included in the Installation Cost?
A heat pump installation quote should clearly itemise each component. When comparing quotes, ensure they all include the same scope — otherwise you can't compare them fairly. Here's what a full installation typically includes:
| Component | Typical Cost | Notes |
|---|---|---|
| Heat pump unit (ASHP) | £5,000 – £12,000 | Brand and output-dependent |
| Hot water cylinder | £600 – £1,500 | Larger than standard — 200L+ |
| Labour (installation) | £2,000 – £4,000 | 2–3 days for a team |
| Electrical upgrades | £500 – £1,500 | New circuit/consumer unit if needed |
| Pipework changes | £300 – £1,000 | Connecting to existing radiators |
| Smart controls/thermostat | £200 – £500 | Recommended for efficiency |
| Radiator upgrades (if needed) | £1,000 – £3,000 | Often required for full performance |
| MCS certification/paperwork | Included by installer | Required for BUS grant |
| Commissioning and testing | Included | Required by installer |
The Boiler Upgrade Scheme Grant (£7,500)
The Boiler Upgrade Scheme (BUS) is a UK government grant that reduces the upfront cost of heat pump installation. In 2026 it provides:
- £7,500 for air source heat pumps (ASHP)
- £7,500 for ground source heat pumps (GSHP)
- £5,000 for biomass boilers (in rural off-gas areas only)
The grant is applied by your MCS-certified installer directly — you don't need to claim it yourself. The installer redeems it from Ofgem, and you simply pay the reduced amount. This means the grant is effectively guaranteed as long as the installation meets the scheme's technical and eligibility requirements.
For full eligibility rules and application process, see our dedicated guide on the Boiler Upgrade Scheme.
Running Costs vs Gas Boiler
The economics of heat pump running costs depend on your insulation, the heat pump's efficiency (COP), and current energy prices. Here are realistic annual running cost estimates for a well-insulated 3-bedroom semi-detached home:
- Gas boiler: ~13,000 kWh gas/year × 7p/kWh = ~£910/year
- Heat pump (COP 3.0): ~4,300 kWh electricity/year × 24p/kWh = ~£1,030/year
- Heat pump on green tariff (cheaper electricity): potentially £700–£850/year
The running cost gap between gas and heat pump is narrowing as electricity costs become more competitive and heat pump efficiency improves. If electricity prices continue to fall relative to gas — which many analysts expect as the grid decarbonises — heat pumps will become increasingly cost-effective.
For a complete comparison with long-term payback analysis, see our guide on heat pump vs gas boiler. And if you're still leaning toward replacing your gas boiler, our guide on how to choose the right boiler has full guidance.
Is Your Home Suitable for a Heat Pump?
Before committing to a heat pump, it's worth honestly assessing your home. Heat pumps work best — and deliver the best running cost savings — in properties that meet these criteria:
- Good insulation — Loft insulation (at least 200mm), cavity wall insulation, and ideally solid wall or floor insulation. EPC rating C or above is the general benchmark.
- Enough outdoor space — An ASHP outdoor unit is roughly the size of a large suitcase. It needs clear airflow around it and shouldn't be enclosed. Most properties with a rear garden have suitable space.
- Existing or compatible heating distribution — Underfloor heating is ideal. If you have standard radiators, an engineer will assess whether they need upsizing for the lower flow temperatures a heat pump operates at.
- Adequate electrical supply — Heat pumps require a 230V single-phase supply (standard in UK homes). Higher-output units may need an upgraded consumer unit.
- Not in a flat above another residence — Outdoor unit installation and planning rules can complicate flat installations, though not make them impossible.
If your home doesn't currently meet these standards, it's worth improving insulation first — both for the grant eligibility and to ensure the heat pump performs to its potential. Also check our guide on new boiler costs in case a boiler replacement remains the better near-term option while you improve insulation.
Frequently Asked Questions
How long does heat pump installation take?+
A typical air source heat pump installation takes 2–3 days. This includes mounting the outdoor unit, connecting to the indoor pipework, installing the hot water cylinder, and commissioning and testing the system. More complex installations with radiator upgrades or electrical work may take 3–5 days.
Do I need planning permission for a heat pump?+
Air source heat pumps are usually covered by permitted development rights in England, Wales, and Scotland — meaning no planning permission is needed, provided the unit meets certain siting rules (e.g., not on a listed building, not in a conservation area, not on a wall/roof facing a highway). Your installer will confirm this as part of the installation process.
What maintenance does a heat pump need?+
Heat pumps require an annual service by a qualified engineer — typically £150–£300. This covers checking refrigerant pressure, inspecting electrical connections, cleaning filters, and verifying system efficiency. Unlike gas boilers, there's no combustion risk or flue to worry about, making heat pump servicing simpler.
Can a heat pump also provide hot water?+
Yes. Most heat pump installations include a hot water cylinder (typically 200–250L). The heat pump heats the water in the cylinder, which then supplies your taps and showers. Some systems use a small immersion heater as a backup for periods of very high demand or if the heat pump requires servicing.
What brands of heat pump are available in the UK?+
Leading air source heat pump brands available from UK installers include Mitsubishi Ecodan, Daikin Altherma, Vaillant aroTHERM, Worcester Bosch GreenerHeat, Nibe, and Samsung. Your MCS-certified installer will recommend a suitable model based on your home's heat loss calculation and hot water demand.
What happens if the heat pump breaks down?+
Most brands offer 5–7 year warranties on major components. Extended warranties of up to 10 years are available from some manufacturers. In a breakdown situation, a qualified heat pump engineer (MCS-certified or F-Gas certified for refrigerant work) must carry out repairs. Response times vary — check what service cover your installer provides before committing.
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