Air Source Heat Pump Cost Calculator

Calculate installation costs for air source heat pumps in the UK with £7,500 government grant

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£7,500
Government Grant Available
£8-14k
Typical Full Cost
£500-900
Annual Running Costs
7-10 yrs
Typical Payback Period

Air Source Heat Pump Cost Calculator

Your Estimated Costs

Heat Pump System:£5,850
Installation & Labour:£2,500
Hot Water Cylinder:£1,500
Total Installation Cost:£9,850
Boiler Upgrade Scheme Grant:-£7,500
Your Cost After Grant:£2,350

Note: Heat pump size needed: 13kW. Annual running costs: £1,121. Estimated savings vs gas boiler: £114/year.

Air Source Heat Pump Cost Breakdown

Understanding what goes into the cost of an air source heat pump installation helps you make an informed decision. Here's a detailed breakdown:

Equipment Costs

Heat pump unit (5-8kW)£4,000-6,000
Hot water cylinder (250L)£800-1,500
Pipework & fittings£500-1,000
Controls & thermostat£300-600

Installation Costs

Labour (2-3 days)£2,000-3,500
Electrical work£500-1,000
Radiator upgrades (if needed)£0-2,000
Removal of old system£300-600

Total Typical Range: £8,000 - £14,000

After the £7,500 Boiler Upgrade Scheme grant, your out-of-pocket costs typically range from £500 to £6,500. Larger properties and those requiring radiator upgrades will be at the higher end of this range.

Factors That Affect Air Source Heat Pump Costs

1. Property Size & Heat Loss

Larger properties need bigger, more powerful heat pumps. A 2-bed flat might only need a 5kW unit (£4,000-5,000), while a 5-bed detached house could require a 12-16kW system (£7,000-9,000).

Flat
5-6kW
3-bed Semi
8-10kW
4-bed Detached
10-12kW
5-bed House
12-16kW

2. Existing Radiators & Emitters

Heat pumps work best with larger radiators or underfloor heating. If your existing radiators are small, you may need to upgrade them (add £100-200 per radiator). Well-insulated properties with modern radiators may not need any changes.

3. Hot Water Requirements

Most installations include a new hot water cylinder (£800-1,500). Larger households need bigger cylinders:

  • 1-2 people: 150L (£800-1,000)
  • 3-4 people: 250L (£1,000-1,300)
  • 5+ people: 300L+ (£1,300-1,500)

4. Installation Complexity

Simple installations cost less. Factors that increase installation costs:

  • Long pipe runs from outdoor unit to cylinder (+£300-600)
  • Difficult outdoor unit placement (+£200-500)
  • Three-phase electrical upgrade required (+£1,000-2,000)
  • Listed building or conservation area (+£500-1,500)

Annual Running Costs

Air source heat pumps are typically cheaper to run than oil, LPG, and electric heating, but can be slightly more expensive than gas in some cases. However, with rising gas prices and improving electricity rates, the gap is closing.

Typical 3-Bed Semi

Gas boiler:£900-1,200
Heat pump:£700-950
Oil boiler:£1,400-1,800
Electric storage:£1,800-2,400

Well-Insulated 4-Bed

Gas boiler:£1,100-1,400
Heat pump:£850-1,100
Oil boiler:£1,700-2,200
Electric storage:£2,200-2,900

Poorly Insulated 4-Bed

Gas boiler:£1,600-2,000
Heat pump:£1,400-1,800
Oil boiler:£2,500-3,200
Electric storage:£3,200-4,000

Pro tip: Heat pumps work most efficiently in well-insulated homes. Consider improving insulation first to maximize savings. Running costs assume COP (efficiency) of 3.0-3.5 and electricity at 24-28p/kWh.

£7,500 Boiler Upgrade Scheme Grant

The UK government offers a £7,500 grant for air source heat pump installations through the Boiler Upgrade Scheme (BUS). This significantly reduces the upfront cost.

Who Qualifies?

  • Homeowners in England & Wales
  • Replacing fossil fuel heating (gas, oil, LPG)
  • Property has valid EPC (no minimum rating)
  • Using MCS-certified installer

How to Apply:

  1. 1.Get quotes from MCS-certified installers
  2. 2.Installer applies for grant on your behalf
  3. 3.Grant approved (typically 2-4 weeks)
  4. 4.Installation completed
  5. 5.Grant paid directly to installer - you pay the balance

Important: The grant is available until 2028 or until funds run out. Don't wait - apply now to secure your £7,500 grant.

Frequently Asked Questions

What size air source heat pump do I need for my home?

Heat pump sizing depends on your property's heat loss calculation. As a rough guide: 1-2 bed flat (5-6kW), 3-bed semi (8-10kW), 4-bed detached (10-12kW), 5+ bed house (12-16kW). A professional MCS installer will perform a detailed heat loss survey to determine the exact size needed.

Are air source heat pumps worth it in the UK?

Yes, especially with the £7,500 BUS grant. Heat pumps are 300-400% efficient (vs 85-95% for boilers), have lower running costs than oil/LPG, and increase property value. They work well in the UK climate and are essential for meeting net-zero targets. Payback period is typically 7-10 years, or 3-5 years when replacing oil/LPG heating.

Do I need to upgrade my radiators for a heat pump?

Not always. Heat pumps work at lower temperatures (45-55°C vs 70-80°C for boilers), so you need larger radiators or underfloor heating for the same heat output. If your property is well-insulated and has modern radiators, you likely won't need changes. A heat loss survey will determine if upgrades are needed (typically £100-200 per radiator).

How long does installation take?

Installation typically takes 2-3 days for a straightforward job. This includes: removing the old boiler (day 1), installing outdoor unit, hot water cylinder, and pipework (days 1-2), electrical connections and commissioning (day 2-3). More complex installations or those requiring radiator upgrades may take 4-5 days.

Can I get a heat pump if I don't have mains gas?

Yes, heat pumps are ideal for off-gas properties currently using oil, LPG, or electric heating. Running costs are significantly lower than these alternatives (typically 30-50% savings). You still qualify for the £7,500 BUS grant when replacing oil, LPG, or direct electric heating.

Do heat pumps work in cold weather?

Yes, modern air source heat pumps work efficiently down to -15°C to -25°C (depending on model). UK winter temperatures rarely drop below -5°C, so heat pumps work perfectly fine. Efficiency does decrease slightly in very cold weather, but they still provide heat when you need it most.

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