How much does an air source heat pump cost?
Guide prices, the Boiler Upgrade Scheme grant and running costs
An air source heat pump system starts from about £11,500 before the government grant. The Boiler Upgrade Scheme takes £7,500 off, if you are replacing a gas, oil or LPG boiler in your own home in England or Wales and the installation qualifies, so the guide price on our heat pump page is £4,500 to £7,500 after the grant. VAT on the installation is currently 0%.
What it costs
An air source heat pump replaces your boiler with an outdoor unit, a hot water cylinder and, where needed, a few bigger radiators. The guide figures on our site:
- From £11,500 for the system, before the grant
- £7,500 off through the Boiler Upgrade Scheme, when your installation qualifies
- Guide price after the grant: £4,500 to £7,500, as on our heat pump page
- VAT: 0% on qualifying installations at the moment (until 31 March 2027, as we understand the current rules)
- Installation: 3–5 days, including the cylinder
What moves the price: the size of the house and how well it is insulated, whether your radiators can run at a lower temperature, where the unit can stand, and a new hot water cylinder. A 4-bedroom house needs a bigger unit than a 2-bedroom flat, and a poorly insulated one needs a bigger unit still. The design comes from a room-by-room heat-loss calculation, not a rule of thumb.
The Boiler Upgrade Scheme grant
The Boiler Upgrade Scheme is a government grant of £7,500 towards an air source heat pump in England and Wales. You do not apply yourself: the installer applies for it, and takes it off your quote.
- You own the home, and it is in England or Wales
- You are replacing a gas, oil, LPG or direct electric heating system
- The heat pump is installed by an installer certified under the Microgeneration Certification Scheme (MCS)
- It is not a new build, and you have not had other government money for the same work
Check the current rules and your own eligibility at gov.uk before you commit. The scheme and its amounts can change. The MCS point matters: without an MCS-certified installer you cannot claim the grant, so ask any installer for their MCS number and check it on the MCS website.
Running costs
A heat pump moves heat rather than burning fuel, so it delivers about three units of heat for every unit of electricity. Electricity costs more per unit than gas, so running costs end up roughly in line with gas for a well-insulated home, and clearly lower than oil, LPG or direct electric heating. A heat pump tariff, or a solar panel and battery system, helps further. What you pay depends on your insulation, your tariff and how you use the heating, and we tell you what to expect on the survey, not before it.
Is a heat pump worth it?
Usually yes if you are replacing oil, LPG or electric heating, if the house is well insulated, or if you want to stop using gas. Think twice if the house loses heat badly (fix the loft and walls first), if there is nowhere for the unit to go, or if you are about to move. The grant brings the upfront price close to a good new boiler.
Planning permission
A heat pump on a house is usually permitted development, within size and siting limits. The unit must stand a minimum distance from your boundary and meet noise limits. Flats, listed buildings, and some conservation area positions are different. We check your address before we design anything. Guidance for homes in England, not advice. A conservation area, a listed building or an Article 4 direction changes the rules, and we confirm what applies on survey.
Prices are illustrative guide figures while our launch pricing is finalised; your exact price follows a free survey. Rules and grants change, so check gov.uk before you rely on them. General guidance, not financial or legal advice.
Common questions
How much does an air source heat pump cost in London?
An air source heat pump system starts from about £11,500 before the government grant. The Boiler Upgrade Scheme takes £7,500 off, if you are replacing a gas, oil or LPG boiler in your own home in England or Wales and the installation qualifies, so the guide price on our heat pump page is £4,500 to £7,500 after the grant. VAT on the installation is currently 0%.
How much does an air source heat pump cost for a 4-bedroom house?
Systems start from £11,500 before the grant, and a 4-bedroom house needs a bigger unit and cylinder than a small flat, so it is above that. The exact figure comes from a heat-loss calculation on the survey. Our guide price after the grant is £4,500 to £7,500.
How much does an air source heat pump cost to run?
About three units of heat for every unit of electricity. That is roughly in line with gas for a well-insulated home, and lower than oil, LPG or direct electric. Your tariff and insulation decide the rest.
Is there a grant for an air source heat pump in the UK?
Yes. The Boiler Upgrade Scheme gives £7,500 towards an air source heat pump in England and Wales, applied by an MCS-certified installer. Check eligibility and current amounts at gov.uk.
Who is eligible for the Boiler Upgrade Scheme?
Owners of homes in England or Wales who replace a gas, oil, LPG or direct electric system, with an MCS-certified installation, in an existing home. Confirm the details on gov.uk.
Is a heat pump worth it in the UK?
Usually, when replacing oil, LPG or electric heating, or in a well-insulated home. For a poorly insulated house, improve the insulation first.
Do I need planning permission for a heat pump?
A heat pump on a house is usually permitted development, within size and siting limits. Guidance for homes in England, not advice. A conservation area, a listed building or an Article 4 direction changes the rules, and we confirm what applies on survey.
How do I get an exact price?
Book a free survey: we measure, do the heat-loss calculation and give you a written price.