Air Source Heat Pump Cost Calculator
Estimate what an air source heat pump costs to install and run in the UK, and what a Boiler Upgrade Scheme grant of £7,500 (or £9,000 for eligible off-gas-grid homes) could take off
Request Heat Pump QuotesTypical costs, last reviewed September 2026. Sources: Energy Saving Trust (July 2026 prices); DESNZ Boiler Upgrade Scheme statistics, July 2026.
Air Source Heat Pump Cost Calculator
Your Rough Estimate
How we estimate: half of the air source heat pumps installed under the Boiler Upgrade Scheme in April to June 2026 cost between £11,128 and £15,627 before the grant (median £12,908, typically 8kW). Large or complex homes can cost more. Only a survey gives a real price, and the size here is a rough guide, not a heat loss calculation.
Running costs: electricity for heating of around £830 a year at 26.32p/kWh (Ofgem price cap from 1 October 2026), assuming about 3 units of heat per unit of electricity and before standing charges. For a typical three-bedroom semi, the Energy Saving Trust estimates that replacing a gas boiler with a heat pump on a standard tariff means anything from about £110 a year more to about £220 a year less.
What an Air Source Heat Pump Quote Covers
A quote should itemise the work. Prices vary with your home's heat loss, the heat pump model and how much of your heating system needs changing.
Equipment
- • The outdoor heat pump unit, sized from a heat loss survey
- • A hot water cylinder, if you do not already have a suitable one
- • Pipework, fittings and heating controls
Installation
- • Labour, electrical work and commissioning
- • Larger radiators in rooms that need them
- • Removing the old boiler or heaters
Typical costs: around £12,000, and £11,128 to £15,627 for half of recent installs
The Energy Saving Trust puts a typical installation at around £12,000 (July 2026 prices). Government figures for Boiler Upgrade Scheme installs in April to June 2026 show a median of £12,908 before the grant. Taking the £7,500 grant off that median leaves £5,408, or £3,908 with the £9,000 off-gas-grid grant. Installed heat pumps currently have 0% VAT until 31 March 2027, then 5%. Typical costs, last reviewed September 2026.
Factors That Affect Air Source Heat Pump Costs
1. Property Size & Heat Loss
Homes that lose more heat need a bigger heat pump, which costs more. The median air-to-water heat pump installed under the Boiler Upgrade Scheme in April to June 2026 was 8kW. An MCS-certified installer should size yours from a room-by-room heat loss survey.
2. Existing Radiators & Emitters
Heat pumps run at lower flow temperatures than most boilers, so some rooms may need larger radiators or underfloor heating. The survey will show which rooms need changes.
3. Hot Water
Combi boiler homes usually need a hot water cylinder and space to put it. Larger households need a bigger cylinder.
4. Installation Complexity
Long pipe runs, awkward outdoor unit positions, electrical upgrades, listed buildings and conservation areas can all add cost. In England, the rule that a heat pump had to be at least 1 metre from the boundary to count as permitted development was removed on 29 May 2025, but other conditions, including noise limits, still apply.
Annual Running Costs
A heat pump typically produces about three units of heat for every unit of electricity it uses. But electricity costs much more per unit than gas: 26.32p/kWh against 7.97p/kWh under the Ofgem price cap from 1 October 2026. The Energy Saving Trust says that on standard tariffs, heat pumps "can cost slightly more to run than new gas or oil boilers". Savings are more likely when replacing LPG or electric storage heaters.
| Replacing | Standard electricity tariff | Heat pump tariff, no gas standing charge |
|---|---|---|
| Gas boiler | £110 more to £220 less | £204 to £530 less |
| Oil boiler | £90 more to £260 less | £110 to £460 less |
| LPG boiler | £290 to £780 less | £560 to £1,050 less |
| Electric storage heaters | £800 to £1,200 less | £1,000 to £1,400 less |
Estimated change in yearly bills for a three-bedroom semi-detached home, with radiator upgrades as needed. Each range runs from replacing the most efficient to the least efficient old system. Source: Energy Saving Trust, fuel prices as of July 2026. These are estimates, not guaranteed savings. Improving insulation first can lower running costs.
Boiler Upgrade Scheme: £7,500 or £9,000
The Boiler Upgrade Scheme (BUS) in England and Wales gives £7,500 towards an air source heat pump. Homes heated by oil or LPG with no mains gas connection can get £9,000 until 31 March 2027. The scheme runs to 2030.
Who Can Apply?
- You own the property in England or Wales (including a second home or a home you let)
- You are replacing fossil fuel or electric heating, such as gas, oil, LPG or electric
- No EPC and no income test are needed
- Not available for hybrid systems, most new builds or social housing
How It Works:
- 1.Get quotes from MCS-certified installers
- 2.Your chosen installer applies to Ofgem for the grant
- 3.The installer must install and commission the heat pump within 120 days of applying
- 4.The installer takes the grant off your price upfront, and you pay the balance
Important: UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body and cannot decide who gets funding. Check eligibility on GOV.UK. In Scotland, Home Energy Scotland offers a grant of up to £7,500 for a heat pump, plus an optional interest-free loan of up to £7,500.
Frequently Asked Questions
What size air source heat pump do I need for my home?
It depends on how much heat your home loses, so an MCS-certified installer should carry out a room-by-room heat loss survey before quoting. For context, the median air-to-water heat pump installed under the Boiler Upgrade Scheme in April to June 2026 was 8kW (DESNZ).
Are air source heat pumps worth it in the UK?
It depends mostly on what you are replacing. A heat pump typically produces about three units of heat per unit of electricity. The Energy Saving Trust estimates that in a three-bed semi on a standard tariff, it could cost up to about £110 a year more to run than an efficient gas boiler, or save about £220 against an inefficient one. Savings are more likely when replacing LPG or electric storage heaters. The £7,500 grant (or £9,000 off the gas grid) cuts the upfront cost.
Do I need to upgrade my radiators for a heat pump?
Not always. Heat pumps run at lower flow temperatures than most boilers, so some rooms may need larger radiators to stay warm. A heat loss survey will show which rooms, if any, need changes.
How long does installation take?
A straightforward installation usually takes a few days, and more if radiators or pipework need changing. Your installer should give you a timetable. Under the Boiler Upgrade Scheme, the installer must install and commission the heat pump within 120 days of applying for the grant.
Can I get a heat pump if I don't have mains gas?
Yes. Homes heated by oil or LPG with no mains gas connection can get a £9,000 Boiler Upgrade Scheme grant until 31 March 2027, instead of £7,500. The Energy Saving Trust estimates yearly savings of about £290 to £780 when replacing an LPG boiler on a standard tariff. For oil, it ranges from about £90 more to £260 less.
Do heat pumps work in cold weather?
Yes. Air source heat pumps keep producing heat in cold weather, though they work less efficiently as outdoor temperatures fall. A system designed from a proper heat loss survey allows for this.
Thinking About a Heat Pump?
Tell us about your home and Better Home Hub can introduce installers who cover your area. Sending an enquiry is free. Before you agree a quote, check the installer on the MCS register.
Request Heat Pump Quotes