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Cost guide

What does a heat pump cost in the UK in 2026?

Last updated: April 2026

A heat pump is one of the most effective ways to reduce your home's carbon footprint and lower energy bills in the long run. In the UK, air source heat pumps (ASHPs) are the most popular choice, suitable for most property types including terraced houses, semis, and detached homes. Ground source heat pumps (GSHPs) are more efficient but require significant garden space and a larger upfront investment.

The UK government's Boiler Upgrade Scheme (BUS) offers a £7,500 grant for air and ground source heat pumps, significantly reducing the cost for eligible homeowners. Installation must be carried out by an MCS-certified installer to qualify.

Typical total costs range from £7,000 to £18,000 for an air source heat pump, including installation. Ground source systems run from £15,000 to £35,000. The right system size depends on your home's heat demand — proper insulation beforehand can reduce running costs by up to 30%.

What does a heat pump cost in the UK in 2026?
Price indication per item
£7.000 - £18.000

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Estimated cost
£7,000.00 — £18,000.00
Average
Subsidies may be available for this service. View subsidy information

This is an estimate based on average 2026 prices. Actual costs may vary. Always request multiple quotes for an exact price.

Cost factors

Heat pump installation costs in the UK are made up of several components. Prices below are before any BUS grant deduction.

  • Heat pump unit (ASHP): £4,000–£10,000
  • Installation labour: £2,000–£5,000
  • Hot water cylinder: £600–£1,500
  • Pipework and buffer tank: £500–£1,500
  • Electrical work and smart controls: £400–£1,000
  • Scaffolding (if needed): £300–£800

After the £7,500 Boiler Upgrade Scheme grant, many homeowners pay £3,000–£10,500 net. VAT is 0% on heat pump installations under the Energy Saving Materials relief.

Why do prices vary?

  • Heat pump type: Air source (£7k–£18k) is cheaper than ground source (£15k–£35k). Monobloc systems are simpler to install than split systems.
  • Home size and heat loss: A proper heat loss calculation (required by MCS standards) determines the kW output needed. Poorly insulated homes need a larger, more expensive unit.
  • Existing heating system: Homes with underfloor heating or large radiators work best. Upgrading radiators to low-temperature versions adds £100–£300 each.
  • Hot water setup: Most homes need a new hot water cylinder (£600–£1,500) as heat pumps are not compatible with combi boilers.
  • Insulation standard: Well-insulated homes (EPC C or above) achieve lower running costs. Poor insulation can double annual running costs.
  • Location and climate: Northern Scotland and other colder regions may need a larger unit, but cold-climate ASHPs now operate efficiently at -20°C.

Subsidies & incentives

The main UK support scheme is the Boiler Upgrade Scheme (BUS), administered by Ofgem. It offers:£7,500 for air source heat pumps (ASHPs)£7,500 for ground source heat pumps (GSHPs)Your MCS-certified installer applies for the grant on your behalf and deducts it from your invoice. VAT on heat pump installations is 0% under Energy Saving Materials relief. Low-income households may also qualify for free or subsidised heat pumps through the ECO4 scheme.

Frequently asked questions

Can I get a grant for a heat pump in the UK?
Yes. The Boiler Upgrade Scheme (BUS) offers £7,500 off the cost of an air source or ground source heat pump. You must use an MCS-certified installer and the property must have an EPC with no outstanding recommendations for loft or cavity wall insulation.
Do I need planning permission for a heat pump?
Air source heat pumps are usually covered by Permitted Development Rights in England, Wales and Northern Ireland, so no planning permission is required in most cases. Scotland has its own permitted development rules. Ground source heat pumps are also normally permitted development. Always check with your local planning authority if you live in a conservation area or listed building.
Will a heat pump work in an older British home?
Yes, but older homes (Victorian, Edwardian, 1930s) often need some insulation upgrades first. Solid wall insulation or improved loft insulation helps the system run efficiently. Many heat pump installers will carry out a heat loss survey and recommend improvements before installation.
How long does installation take?
Most air source heat pump installations take 2–3 days. Ground source systems can take 1–2 weeks due to ground loop excavation.
What is the payback period for a heat pump in the UK?
With the BUS grant and current energy prices, many homeowners achieve payback in 8–12 years. The Renewable Heat Incentive (RHI) has ended, but running cost savings and rising gas prices are improving the business case year on year.

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