How much does a new Daikin Heat Pump cost with Installation

  • Written by Hayley May
  • Last updated 20 June 2025

A new Daikin heat pump, including installation, typically costs between £7,000 and £14,000 for UK homeowners. This is an average based on research and homeowner reviews, but the exact cost of installing a heat pump in your property will vary depending on a range of factors.

This guide breaks down the cost of Daikin heat pumps, including installation, features, benefits, and potential savings. It also includes an overview of available models, what you need to know about the installation process, and real user feedback to help you make the right choice for your home.

Who are Daikin?

Daikin is a global leader in heating and cooling technologies, known for their innovation and commitment to energy-efficient solutions. If you’re considering installing a heat pump in your home, Daikin offers a wide range of options suitable for the UK climate.

About the company

Daikin Industries Ltd. is a Japanese multinational company specialising in air conditioning, refrigeration, and climate control solutions. With operations in over 160 countries, Daikin is a trusted name in both residential and commercial HVAC systems. The company is known for its innovation, pioneering inverter and refrigerant technologies that help reduce environmental impact while improving performance.

History of Daikin

Founded in 1924, Daikin has a long history of innovation. The company introduced its first heat pump in 1958 and has since developed advanced inverter and refrigerant technologies. Daikin entered the UK market in the 1970s and has become one of the most prominent heat pump providers in the country. Their commitment to sustainability and customer satisfaction has positioned them as a key player in the transition to low-carbon heating solutions.

Daikin heat pumps

Daikin heat pumps extract heat from the air outside your home, condense it, and use it to provide hot water, warm air, or cool air for your home.

Even when outdoor temperatures are low, these systems can extract enough heat to warm your home efficiently.

Modern Daikin models use inverter technology to adjust power output based on demand, improving efficiency and comfort. During warmer months, many models can also operate in reverse to keep your home cool.

How Daikin heat pumps work

A heat pump works by transferring heat from the air outside your property a rather than generating it. It extracts heat energy from the outside air (even in cold weather) and uses it to warm your home.

This process is highly energy-efficient and environmentally friendly as heat pumps do not release any carbon emissions when operating. They are powered by a small amount of electricity but produce three to four times more heat energy than they use.

  1. The outdoor unit contains a refrigerant that absorbs heat from the air, even when temperatures are as low as -15°C.
  2. The refrigerant is compressed, increasing its temperature.
  3. The heated refrigerant transfers its warmth to water, which circulates through your radiators, underfloor heating, or hot water tank.
  4. The refrigerant cools, returns to a liquid state, and the cycle repeats.

Reverse operation for cooling

Many Daikin heat pumps are reversible, meaning they can also cool your home by removing indoor heat and releasing it outside, essentially working like an air conditioner in summer.

Types of Daikin heat pumps

There are several types of heat pumps manufactured by Daikin and it’s important to understand all the options to make sure you are installing a heat pump that suits your property and lifestyle. A professional heat pump installer will be able to assess your home and advise you.

Daikin Altherma air-to-water heat pumps

Air-to-water heat pumps extract heat from the air outside the home and use it to heat water that can then supply a wet central heating system as well as taps or showers in your home.

  • High temperature: Suitable for older properties with traditional radiators. Provides higher water temperatures, up to 70°C.
  • Mid-temperature: Often an effective, renewable replacement for an old gas boiler.
  • Low temperature: Ideal for underfloor heating and newer, well-insulated homes. Operates efficiently at lower water temperatures.

Daikin Altherma air-to-air heat pumps

Air-to-air heat pumps take energy from the outside air and via a refrigerant cycle, releases the air at a higher or lower temperature into your room through the indoor unit, depending on your heating or cooling needs. These units can be wall-mounted, freestanding, or concealed in a ceiling.

Daikin hybrid heat pumps

You can combine a gas boiler with a heat pump. The hybrid system then chooses the most efficient energy source (gas or electricity) based on your needs, saving you money and minimising carbon emissions.

Domestic hot water heat pumps

These heat pumps use energy from the air outside your property produce domestic hot water that is then stored in an insulated steel tank so it’s ready for use when you need it.

Monobloc or split systems
In addition to heat pump’s function, you may also need to decide on how it will be installed in your property, i.e., as an all-in-one unit outside, or split between inside and outside.

  • Monobloc systems: All-in-one units installed outside. Easier and faster to install but may be less efficient in very cold climates.
  • Split systems: Separate indoor and outdoor units, offering more flexibility in installation and better performance in colder conditions.

Key features and technology

Inverter compressor technology

Daikin’s inverter compressors adjust the motor speed to match heating demand, improving energy efficiency and reducing wear and tear. This results in lower energy bills and a more consistent indoor temperature.

Integrated smart controls

Most models are compatible with Daikin’s app-based control systems, allowing remote access to temperature settings, schedules, and energy reports. You can monitor energy usage, adjust settings on the go, and integrate your system with home automation platforms.

Weather-compensated heating

This feature adjusts output based on outdoor conditions, ensuring consistent indoor comfort and maximising efficiency. It reduces energy usage during milder weather while keeping your home comfortable year-round.

Benefits of choosing a Daikin heat pump

Energy efficiency and performance

Daikin heat pumps are typically rated A+++ for energy efficiency. Seasonal Coefficient of Performance (SCOP) values range between 3.5 and 5.0, meaning they can deliver up to five times more energy than they consume. This can lead to significant savings on energy bills.

Low carbon emissions and sustainability

Switching to a heat pump significantly reduces your carbon footprint. Daikin uses low-GWP refrigerants such as R32 and invests heavily in sustainable technology. Their systems are designed to work efficiently with renewable energy sources, making them an excellent choice for environmentally conscious homeowners.

Compatibility with UK homes and heating systems

Daikin offers models suited to both new builds and retrofits. High-temperature units can work with existing radiators, making upgrades simpler. Their hybrid models are particularly useful for homes with existing gas infrastructure but a desire to transition to lower-carbon heating.

Quiet operation and design

Units are designed for low noise, with some outdoor models operating as quietly as 35 dB(A), comparable to a library. Indoor units are compact and can be discreetly integrated into utility rooms or cupboards.

Daikin heat pump models

Daikin Altherma models

The Daikin Altherma range is their flagship line of air-to-water heat pumps.

Air to water low temperature

These heat pumps are designed to meet the needs of a newly built, highly insulated home.

  • Daikin Altherma 3 R F
  • Daikin Altherma 3 R ECH₂O
  • Daikin Altherma 3 R W
  • Daikin Altherma 3 M

Air to water medium temperature

Air-to-water mid-temperature heat pumps are designed to upgrade an existing heating system or for installation in large, new-build homes.

  • Daikin Altherma 3 H MT F
  • Daikin Altherma 3 H MT ECH₂O
  • Daikin Altherma 3 H MT W

Air to water high temperature

Air-to-water high-temperature heat pumps are designed to replace heating systems in older homes.

  • Daikin Altherma 3 H HT F
  • Daikin Altherma 3 H HT ECH₂O
  • Daikin Altherma 3 H HT W

Comparison of models

ModelTypeInstallationFunctionsOther features
Daikin Altherma 3 R FLow tempSplit (floor standing indoor and outdoor unit)Hot water, heating, cooling – compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Daikin Altherma 3 R ECH₂OLow tempSplit (floor standing indoor and outdoor unit)Hot water, heating, cooling – compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Smartgrid ready that can store thermal energy and can connect to thermal solar panels for hot water production
Daikin Altherma 3 R WLow tempSplit (floor standing indoor and outdoor unit)

Optional hot water tank 150 to 300L
Hot water, heating, cooling – compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Energy efficiency up to A+++ for heating
Connects to water tanks or thermal stores
Daikin Altherma 3 MLow tempMonobloc (outdoor unit only)
Optional hot water tank 150 to 300L
Heating and coolingSmart controls
Connects easily to hot water tanks
Daikin Altherma 3 H MT FMid tempSplit (floor standing indoor and outdoor unit)Hot water, heating, cooling – compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Integrated hot water storage
Daikin Altherma 3 H HT ECH₂OMid tempSplit (floor standing indoor and outdoor unit)Hot water, heating, cooling – compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Smartgrid ready that can store thermal energy and can connect to thermal solar panels for hot water production
Daikin Altherma 3 H MT WMid tempSplit (wall-mounted indoor unit and outdoor unit)
Optional hot water tank 150-300L
Heating and cooling, compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls

Can connect to a domestic hot water tank or thermal store
Daikin Altherma 3 H HT FHigh tempSplit (floorstanding indoor unit and outdoor unit)Heating and cooling, compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Daikin Altherma 3 H HT ECH₂OHigh tempSplit (floorstanding indoor unit and outdoor unit)Heating and cooling, compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls
Smartgrid ready that can store thermal energy and can connect to thermal solar panels for hot water production
Daikin Altherma 3 H HT WHigh tempSplit (wall-mounted indoor unit and outdoor unit)
Optional hot water tank 150-300L
Heating and cooling, compatible with underfloor heating, low-temperature radiators and heat pump convectorsSmart controls

Can connect to a domestic hot water tank or thermal store

Daikin heat pump installation

What to expect during installation

The installation process includes a home assessment, system design, unit placement, electrical/plumbing work, and system testing. It typically takes 2–5 days depending on complexity. Installers will determine optimal unit placement for efficiency and aesthetics.

Choosing an MCS-certified installer

To qualify for government grants and ensure system performance, hire an MCS (Microgeneration Certification Scheme) accredited installer. These professionals are trained in best practices for heat pump installations and must adhere to strict standards.

Installation time and disruption

You can expect moderate disruption, particularly if existing radiators or electrical systems need upgrading. Most jobs are completed within a week. Installers should provide a schedule and contingency plan for unexpected issues.

Common pre-installation check

Professional heat pump installers will usually conduct assessments before they recommend a heat pump type and size. These should include:

  • Heat loss calculations
  • Insulation assessment
  • Radiator and system compatibility check
  • Electrical supply and consumer unit evaluation

Costs and savings

Initial cost of Daikin heat pumps

The upfront cost of installing a Daikin heat pump ranges from £7,000 to £14,000, depending on the model, capacity, and installation complexity. Monobloc systems tend to be more affordable, while split and high-temperature systems cost more.

Running costs and energy savings

Heat pumps can reduce annual heating bills by up to 60% compared to electric heating. Running costs will depend on your electricity tariff and system efficiency. If switching from oil or LPG, the savings can be even greater. On average, you might expect annual savings of £400–£900.

Cost vs benefit over time

Though the upfront cost is high, savings on energy bills and grants can make heat pumps cost-effective over a longer-term period. Typical payback is 7–12 years, and with rising gas prices and increased focus on energy efficiency, these systems are increasingly attractive to homeowners looking to reduce energy costs.

Maintenance costs

Annual servicing costs between £150 and £250. Regular maintenance includes:

  • Filter cleaning or replacement
  • Refrigerant checks
  • System performance tests

Government grants and financial support

Boiler Upgrade Scheme

To support the UK’s goal of reducing carbon emissions, the government offers the Boiler Upgrade Scheme (BUS), which helps make low-carbon heating systems more affordable. Homeowners in England and Wales can apply for a £7,500 grant towards the cost of installing an air-to-water or ground source heat pump, and £5,000 for a biomass boiler. This significantly reduces the upfront cost, making heat pumps a more accessible alternative to traditional gas boilers.

Additional incentives in the UK

Some local councils and energy providers offer additional funding or interest-free loans for green home upgrades. Check with your local authority for available support.

Eligibility criteria and how to apply

To be eligible for the BUS grant, you must:

  • Own the property
  • Replace an existing fossil fuel heating system (gas, oil, LPG, or electric)
  • Have a valid Energy Performance Certificate (EPC) with no outstanding insulation recommendations
  • Use an MCS-certified installer, who will apply for the grant on your behalf

The grant is applied directly by the installer, so homeowners don’t need to handle any paperwork themselves.

Is a Daikin heat pump right for your home?

Ideal property types and insulation needs

Heat pumps perform best in well-insulated homes. You may need loft, cavity wall, or floor insulation upgrades to qualify for grants and optimise performance. New builds and recently renovated homes are ideal candidates.

Considerations for existing radiators and systems

Older radiators may require replacement with larger ones to work efficiently with low-temperature heating. Underfloor heating systems are particularly effective when paired with heat pumps.

Heat pump sizing and output

Installers conduct a detailed heat loss calculation to recommend the appropriate output. Oversized or undersized units reduce performance. A correctly sized system ensures consistent comfort and maximum efficiency.

Summary of user reviews of Daikin heat pumps

Pros

High energy efficiency
Users consistently report significant reductions in heating bills due to the system’s excellent energy performance.

Quiet operation
Many customers praise the quietness of both indoor and outdoor units, making them suitable for urban and residential areas.

User-friendly smart controls
Homeowners appreciate the intuitive app-based controls, which allow for easy temperature adjustments and energy monitoring.

Reliable performance
Daikin heat pumps are described as dependable, maintaining consistent indoor temperatures throughout the year.

Smooth installation
Numerous reviews highlight positive experiences with knowledgeable and professional installers (when using certified providers).

Long-term durability
Customers mention long-lasting systems that require minimal maintenance, reinforcing the value of the investment.

Environmental benefits
Users value the low carbon emissions and feel good about contributing to a greener lifestyle.

Cons

Issues with third-party installers
Many complaints stem from poor installation experiences, including improper setup, miscommunication, or lack of expertise from contractors not directly employed by Daikin.

Long wait times for service and parts
Customers report extended delays when trying to get repairs, maintenance, or replacement parts—sometimes waiting weeks or months.

Software and control system glitches
Some users encountered bugs or connectivity issues with Daikin’s smart controls and app, leading to frustration and inconsistent operation.

Poor after-sales support
Several reviewers note inadequate customer service after installation, citing difficulties in getting support, callbacks, or warranty assistance.

FAQs

Are Daikin heat pumps suitable for UK homes?

Yes, especially in homes with good insulation. High-temperature models work with existing radiators, while low-temp options are ideal for new builds.

What are the main benefits of installing a Daikin heat pump?

The most commonly reported benefits are the energy savings, lower carbon emissions, long lifespan, and quiet operation.

How long do Daikin heat pumps typically last?

A Daikin heat pump can last 15–20 years with proper maintenance. Many users report reliable performance well beyond a decade.

What maintenance does a Daikin heat pump require?

To keep a Daikin heat pump in good working order you should make sure it receives an annual service, filter cleaning, refrigerant checks, and system inspections by certified professionals.

What is the environmental impact of using a heat pump?

Heat pumps produce significantly lower emissions than gas or oil boilers. They use a small amount of electricity to run. Heat pumps use renewable heat from the air and can integrate with solar PV systems.

How do I get a quote for a Daikin heat pump?

Contact local MCS-certified installers or use online comparison tools. It is always wise to get multiple quotes so you can compare their recommendations and pricing.

Can I finance the cost of a Daikin heat pump?

Yes, through loans, supplier financing, or top-up grants. Some installers offer 0% finance or deferred payment options.

Is a Daikin heat pump suitable for off-grid homes?

Yes, especially when paired with solar PV and battery storage, a Daikin heat pump can be a great alternative to oil or LPG heating.

What is the warranty on a Daikin heat pump?

The typical warranty on a Daikin heat pump is 5–7 years. They can be extended with approved installation and service plans. Some installers may offer additional warranty coverage.