Heat Pump Facts
- The typical installation cost for an air source heat pump is between £11,000 and £16,000. After applying the £7,500 Boiler Upgrade Scheme Grant, the total cost to pay is between £3,500 and £8,500.
- Heat pumps are 3-5 times more efficient than gas boilers because they transfer heat from the outside air rather than generate it through combustion.
- Heat pumps generally have lower running costs than gas and oil boilers when their efficiency is factored in, especially in well insulated homes.
- With proper maintenance, heat pumps can last 15-20 years, which is longer than many conventional heating systems.
Air source heat pumps can be a more sustainable way of heating (and cooling) our homes thanks to their energy efficiency and relatively low carbon emissions.
But how much does an air source heat pump cost, and is it the right heating solution for your home?
Read on for more information about the likely cost of installing and running an air source heat pump in 2025, as well as any potential savings.
How Much Does an Air Source Heat Pump Cost in the UK?
From our research an air source heat pump (ASHP) installation will cost between £3,500 and £8,500 after claiming the £7,500 Boiler Upgrade Scheme Grant. This is a wide price range, based on different property types. An ASHP for a typical 2 bed terrace house will cost around £3,500, whereas a 5 bed detached will be on the upper end at about £8,500. We look at the cost of an air source heat pump in greater detail later in this article.
In some cases, government grants may be available that can reduce the cost significantly, we’ll also explore this in more detail later.
When it comes to the running cost annually, this could range from £800 to £1,800, but this will depend on the property size, level of insulation, and, of course, how much water/heating you require.
The cost of an air source heat pump can seem steep to some, especially when compared to the average cost of a new gas boiler installation coming in at £2,500 to £3,500. However, once the technology is installed, it can significantly reduce your annual energy bills.
Air Source Heat Pump Installation Costs by Property Type
When estimating costs, it is not just the heat pump equipment you need to factor in, but the cost of the installation work as well. The more complex your heating system and the larger your property, the longer the work will take to complete, increasing labour costs. Property size and its EPC rating affects the how much heat output is required, quite simply, a larger property requires a larger heat pump. In the same way, a lower EPC rating increases heat pump size as well.
The best way to find the cost of a heat pump is to actually get a quote, so that’s what we did. We took 5 typical homes in the UK ranging in size and age then found 3 installers to quote for an air-to-water air source heat pump for each property.
Below we list each property, their age, EPC rating and how large the home is in square metres. Then for each home we’ve averaged out the price and the size of system quoted to give you a good idea of what you can expect to pay.
2 Bedroom Terrace
| Property Type | 2 bedroom 1 bathroom Terraced House |
| EPC rating* | D |
| Size in Sq/m | 56 |
| Year built | Approx 2002 |
| Proposed system | 3.5 – 5kW heat pump + 150L cylinder |
| Average cost of 3 quotes | £11,001 – £7,500 grant = £3,501 to pay |
3 Bedroom Bungalow
| Property Type | 3 bedroom 1 bathroom Bungalow |
| EPC rating* | C |
| Size in Sq/m | 68 |
| Year built | 1960s |
| Proposed system | 5kW heat pump + 150L cylinder |
| Average cost of 3 quotes | £11,497 – £7,500 grant = £3,997 to pay |
2 Bedroom Semi-Detached
| Property Type | 2 bedroom 1 bathroom Semi-Detached House |
| EPC rating* | D |
| Size in Sq/m | 72 |
| Year built | 1980s |
| Proposed system | 3.5 – 5kW heat pump + 150-200L cylinder |
| Average cost of 3 quotes | £11,430 – £7,500 grant = £3,930 to pay |
4 Bedroom Detached
| Property Type | 4 bedroom 2 bathroom Detached House |
| EPC rating* | D |
| Size in Sq/m | 161 |
| Year built | 1950s |
| Proposed system | 10 – 12kW heat pump + 200L cylinder |
| Average cost of 3 quotes | £14,938 – £7,500 grant = £7,438 to pay |
5 Bedroom Detached
| Property Type | 5 bedroom 3 bathroom Detached House |
| EPC rating* | B |
| Size in Sq/m | 201 |
| Year built | Approx 2018 |
| Proposed system | 10 – 12kW heat pump + 200-300L cylinder |
| Average cost of 3 quotes | £15,953 – £7,500 grant = £8,453 to pay |
*An EPC rating (Energy Performance Certificate rating) is a measure of a property’s energy efficiency, ranging from A (most efficient) to G (least efficient). A lower rating means higher heat loss, which requires a larger heat pump. This can be mitigated through improved insulation measures.
What to Consider When Buying an Air Source Heat Pump
If you’re considering installing an air source heat pump, it’s important to think about several other factors before you go ahead. For example, you need to be aware that unlike a gas boiler, the pump will be installed outside the home. It looks like a metal block about the same size as a fridge.
Types of Air Source Heat Pump
There are three types of heat pump, and each differs slightly in terms of cost. An air-to-air heat pump is typically 50% cheaper than an air-to-water heat pump as they are less complex to install, but will only blow hot air. An air-to-water heat pump, on the other hand, supplies hot water to radiators, making it a suitable direct replacement for a traditional boiler commonly found in UK homes.
Air-to-water heat pumps
Air-to-water heat pumps work in ‘wet’ heating systems that use hot water radiators to keep your home warm. It will also provide hot water for taps and showers.
If you install an air-to-water heat pump (rather than an air-to-air) you will also need to have a compatible hot water cylinder in your home to store the water that the pump has heated, and you may need to swap existing radiators for ones with a larger surface area.
This is because the hot water generated by an air source heat pump is not as hot as water heated by a traditional boiler, so a larger surface area is needed to ensure enough heat is released into the home. Underfloor heating is often an effective heat delivery system for this reason.
An air-to-water heat pump is the most common type to replace a traditional boiler, and is eligible for the Boiler Upgrade Scheme.
Air-to-air heat pumps
Air-to-air source heat pumps heat or cool the air in the room directly and can be switched between heat and cooling depending on the season.
These are typically installed into commercial properties that do not have a wet radiator style central heating system. Compared to an air-to-water heat pump they’re simpler to install but do not provide hot water.
Hybrid heat pumps
Some people choose to install a heat pump alongside a boiler, so they can reduce their energy usage and carbon footprint, but still occasionally have the convenience of a boiler.
For example, in particularly cold weather, heat pumps do not work as efficiently, and a boiler could provide additional heating power. This, however, is a belt-and-braces solution and is typically unnecessary given the mild UK temperatures, even during winter.
Heat Pump Power Capacity
When choosing an air source heat pump, your installer will assess how powerful it needs to be according to the size of your property and your hot water/heating needs. A heat pump’s power is measured in kilowatts (kW) and for a typical UK house will range from 3.5-12kW. So, you need a heat pump that will meet your demand, but you also don’t want one that is unnecessarily powerful, as this will be more costly to run.
Maintenance Costs
Once the air source heat pump is installed, you will need to ensure it is well maintained so it can run efficiently, and you minimise the likelihood of breakdowns. Professional servicing and maintenance are likely to cost £150 to £300 annually but keeping on top of this should keep your running costs as low as possible.
Planning Permission
In most cases a heat pump is deemed a ‘permitted development’ meaning that planning permission isn’t needed to install. However, in some situations there can be complications. For example, if the property is a listed building or located within a conservation area, or the heat pump will encroach on a neighbour’s property.
You will need to inform your local district network operator (DNO) that you are installing a heat pump as they manage the electricity that comes to your home. If you are unsure, speak to your heat pump installer to ensure they will handle this.
Heat Pump Noise
It’s worth noting that heat pumps do produce a low level of noise when they are operating, like the noise you would hear from your fridge. As the heat pump is installed outside the home and the noise is low, this is rarely an issue, but some manufacturers have developed ‘ultra quiet’ heat pumps.
Some users have complained of a droning type noise when a heat pump is running, this is the fan that is used to move the air and will be more apparent when the heat pump is running at full capacity. One way to reduce this is to ensure the heat pump is constantly running at a low level (which is how a heat pump should be used), operating it like a traditional boiler with a typical on/off cycle will cause the heat pump to run at a full capacity making it noisier.
How Does an Air Source Heat Pump Work?
Air source heat pumps extract latent heat from the air outside your home (even in cool temperatures) and turns it into usable heat through a process of evaporation, compression, condensation, and expansion.
- Cooled refrigerant is then passed through an expansion valve to reduce the pressure so it can absorb more heat and repeat the process.
- After extracting the natural heat from the air, the pump transfers it to a heat exchanger. The heat exchanger contains liquid refrigerant which absorbs heat and turns it into a gas (evaporation).
- The gas then moves to an electric compressor, increasing the pressure and raising its temperature.
- Once the refrigerant gas has reached temperature, it goes through a cold-water circuit, heating the water as it moves. When the water is hot enough, it is sent to your radiators, underfloor heating, or hot water cylinder.
Are Government Grants Available for Heat Pumps?
The UK government has carbon targets to meet, so the more energy efficient we can make our homes, the better. To that end, there are grants that some people can apply for to help them pay for greener technologies.
The Boiler Upgrade Scheme (BUS) introduced in October 2023 offers a grant of £7,500 towards the total cost of air-to-water heat pump installation. The grant makes a lot of heat pumps as affordable as a new gas boiler.
The BUS grant can also be used to reduce the cost of installing ground source heat pumps by £7,500, and up to £5,000 for biomass boiler installations.
It’s important to note that these grants are not available for everyone. To be eligible the following rules apply:
- Your property should have a valid Energy Performance Certificate (EPC)
- You must be replacing a current fossil fuel heating system (gas, oil, LPG or electric)
- You must be the property owner
Air Source Heat Pump Running Cost
When compared to the cost of running a traditional heating system, a heat pump could be considerably cheaper. The long-term savings could outweigh the upfront cost off installation.
The cost of running an air source heat pump in the UK, on average, falls between £800 and £1,800 per year. To estimate running costs for your own property you need to consider:
- The size of the property
- The efficiency of the heat pump
- Current energy costs
- Your hot water and heating requirements.
Of course, these figures are only estimates as running costs will be influenced by a range of factors including:
- Level of insulation: A well-insulated home will retain more heat, and so the heat pump will not need to work as much.
- Solar panels: If your home has solar PV panels generating free electricity, this will reduce the cost of powering your heat pump, and solar thermal panels could provide a free (or cheaper) source of hot water.
- Other heating systems: If you choose a hybrid system, you will need to consider the running costs for that system in addition to the heat pump.
- Your heat pumps’ size and Coefficient of Performance (CoP).
The COP measures the efficiency of a heat pump by comparing how much energy is needed to keep it running to how much heat energy it produces. On average the COP value of an air source heat pump is between 2.5 and 3.5 – this is 3 to 4 times more efficient than a gas boiler – and means they generate 3 times more energy than they use.
Again, these figures are based on averages and industry data, and real-life efficiency may vary. Before installation, a heat pump professional will calculate the likely efficiency of a heat pump in your property and any potential savings you could see.
Air Source Heat Pump Maintenance Costs
Just as you would with a traditional boiler, you will need to ensure that your heat pump receives annual servicing and ongoing maintenance. This not only prevents breakdowns but will also keep the heat pump working at optimum efficiency, keeping running costs to a minimum. In fact, neglecting to take care of your heat pump could increase running costs by as much as 25%.
You can carry out some basic maintenance yourself such as checking the blower, ducts and filters for dirt and debris regularly
The cost of professional servicing typically falls between £150 and £300, but each installer will offer different rates.
Is a Heat Pump Worth the Cost?
The cost of installing an air source heat pump can be significant, but when you consider that the heat pump has an expected lifespan of 25+ (compared to a 10-year lifespan for boilers), the long-term financial and environmental benefits become more relevant.
There are key questions to consider when making your decision…
Are you replacing an old inefficient boiler? If so, a heat pump could reduce your energy costs and carbon emissions.
However, if you are considering replacing a newer boiler that is relatively efficient, the heat pump will be a greener option but may not be able to offer much in the way of financial savings.
Is your home well insulated, or are you planning to upgrade insulation? If not, the heat pump may not work efficiently.
Will you need to pay to upgrade radiators and/or install a hot water cylinder in addition to the heat pump?
Do you live in a particularly cold region where heat pumps cannot function as efficiently? Note: Heat pumps from established manufacturers operate efficiently in temperatures as low as -20°C.
The upfront cost of heat pump installation is greater than installing a boiler, but the long-term savings might be enough to make the investment worthwhile. Of course, these saving are not as relevant if you plan to move in the foreseeable future.
If a government grant is available to you, this could significantly reduce the cost of installation and increase the potential benefits of installing one.
To ensure that you are paying a reasonable price for installation, be sure to get at least 3 or 4 different quotes from accredited installers. This will enable you to compare not just their pricing to ensure you are getting a fair deal, but also that they are recommending the right heating solution for your needs.
FAQs
Is a heat pump cheaper to run than a boiler?
This will depend on how efficient the boiler you are replacing is and how well insulated the property is. An efficient boiler that has been installed in the last few years in a well-insulated home might have comparable running costs to a heat pump, but older boilers will be less efficient than a heat pump in an insulated home.
Will a heat pump provide hot water for my home?
If you install an air-to-water heat pump and a hot water cylinder, it will produce hot water for domestic use as well as for your radiators. An air-to-air heat pump will heat or cool the air in your home but won’t provide hot water.
Can I get a grant towards the cost of an air source heat pump?
The Boiler Upgrade Scheme offers grants of up to £7,500 towards the total cost of installing air-to-water heat pumps and up to £5,000 for biomass boiler installations. However, these grants are only available to properties with a valid Energy Performance Certificate (EPC) and must be replacing a fossil fuel heating system (oil, gas, electric or LPG (liquefied petroleum gas). You must also be the property owner.
Which homes are not well suited to air source heat pumps?
A heat pump is not as effective when installed in properties with poor insulation and/or small radiators as it delivers heat of a lower temperature than that of a boiler. It is also important that the property has adequate outside space where the heat pump can be installed, as well as space for a hot water cylinder inside the home.
Are air source heat pumps noisy?
Heat pumps do generate a low level of noise when they are running. The noise level is around 40–60 decibels which is comparable to the noise produced by a fridge, dishwasher or microwave.
*Prices quoted by BOXT.co.uk, E.ON and Heat Geek (heatgeek.com) on five typical UK properties.