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Air Source Heat Pumps

Heat from the outside air, with a £7,500 Boiler Upgrade Scheme grant in England and Wales (£9,000 for eligible off-gas homes on oil or LPG)

£7,500 BUS Grant Around 300% Efficient 0% VAT Until March 2027
Step 1 of 2What you need

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Tell us about the job and we’ll find up to 3 local heat pump installers who cover your area and ask them to contact you with a quote. Free, no obligation.

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What is an Air Source Heat Pump?

Air source heat pumps (ASHPs) extract heat from the outside air and use it to heat your home and hot water. Even when it's cold outside, there's still heat energy in the air that can be extracted and amplified.

The Energy Saving Trust says a heat pump produces around three units of heat for every unit of electricity it uses. It keeps working in cold weather, though less efficiently on the coldest days. Electricity costs much more per unit than gas, so that efficiency does not automatically mean lower bills; see the running costs below.

Why Choose Air Source Heat Pumps?

£7,500 BUS Grant

£7,500 off the price in England and Wales, or £9,000 for eligible off-gas homes heated by oil or LPG until 31 March 2027

Running Costs

Biggest savings when replacing LPG or electric storage heaters; against gas, it depends on your tariff

Lower-Carbon Heating

No gas or oil burned at home to heat it

Simpler Installation

Easier to install than ground source, no ground works required

0% VAT

No VAT on installed heat pumps until 31 March 2027, then 5%

Planning and Noise

In England a heat pump is often permitted development (the 1m boundary rule was removed in May 2025), subject to conditions such as MCS noise standards

How Air Source Heat Pumps Work

1

Extract Heat

Outdoor unit absorbs heat from the air, even in cold weather

2

Amplify Heat

A compressor raises the refrigerant to a useful temperature

3

Transfer Heat

Heat is transferred to your heating system and hot water

4

Warm Home

Radiators or underfloor heating provide comfortable warmth

Air Source Heat Pump Costs

£11,128–£15,627
Middle half of Boiler Upgrade Scheme installs, April–June 2026, including the grant value (median £12,908; EST typical around £12,000)
-£7,500
BUS grant, taken off your quote
-£9,000
Instead, for eligible off-gas homes heated by oil or LPG (until 31 March 2027)
-£110 to £220/year
Saving vs a gas boiler on a standard electricity tariff (a minus figure means it costs more)
On a heat pump tariff, no gas standing charge
£204–£530/year
Replacing LPG: £290–£780/year. Storage heaters: £800–£1,200/year

Typical costs, last reviewed September 2026. Sources: DESNZ Boiler Upgrade Scheme statistics (April–June 2026) and Energy Saving Trust (three-bed semi, July 2026 prices; ranges run from the most to the least efficient old system). Your costs depend on your home, tariff and installer.

UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body and cannot decide who gets funding — check eligibility with the official scheme on GOV.UK.

Is an Air Source Heat Pump Right for You?

✓ Perfect For

  • Reasonably well-insulated homes
  • Properties with outdoor space for unit
  • Replacing gas, oil, or LPG heating
  • Homes with underfloor heating or large radiators
  • Off-gas homes heated by LPG, oil or storage heaters

⚠ Consider Carefully

  • Poorly insulated homes (insulate first)
  • No outdoor space for unit placement
  • Small radiators that may need upgrading
  • Very close neighbours (siting and noise limits)

Quick Grant Finder

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Ready to Switch to a Heat Pump?

Send a free enquiry and Better Home Hub will try to introduce heat pump installers near you. Check any installer on the MCS register before you agree to work.

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