How much does a heat pump cost in the UK in 2026?

According to industry surveys, air source heat pumps typically cost GBP8,000 to GBP15,000 installed, while ground source heat pumps cost GBP15,000 to GBP25,000. The GBP7,500 Boiler Upgrade Scheme grant significantly reduces the cost.

Is a heat pump worth the investment?

With the GBP7,500 government grant, an air source heat pump can cost from around GBP500 to GBP7,500 after funding. Lower running costs compared to oil or LPG heating, plus potential property value increases, can make it a worthwhile long-term investment.

What affects the cost of a heat pump installation?

Key factors include property size, insulation quality, system type (air or ground source), radiator upgrades needed, existing pipework condition, and location. Larger or poorly insulated homes need more powerful systems.

Heat Pump Costs UK 2026 - Installation Prices & Grants

Important notice

Costs quoted are compiled from installer websites, industry surveys, and trade body publications. Actual costs vary significantly by property, location, and system specification. Always get multiple quotes from MCS-certified installers for accurate pricing.

Heat Pump Cost Breakdown

Air source

Air source heat pump

Heat pump unit £4,000–£8,000

Installation labour £2,000–£4,000

Hot water cylinder £500–£1,500

Pipework & connections £500–£1,500

Total before grant £8,000–£15,000

BUS grant −£7,500

Your cost £500–£7,500

Ground source

Ground source heat pump

Heat pump unit £6,000–£12,000

Ground works & loops £5,000–£8,000

Installation labour £2,000–£3,000

Cylinder & pipework £2,000

Total before grant £15,000–£25,000

BUS grant −£7,500

Your cost £7,500–£17,500

Additional costs to consider

Heat output

Radiator upgrades

£1,000–£3,000

Heat pumps operate at lower flow temperatures than gas boilers. Some radiators may need upsizing for adequate heat output.

Distribution

Underfloor heating

£2,000–£5,000

Ideal pairing with heat pumps due to lower water temperatures. Cost depends on floor area and whether it's a retrofit or new build.

Fabric

Insulation improvements

£500–£5,000

Good insulation reduces the heat pump size needed. May be grant-funded through GBIS or the Warm Homes: Local Grant.

Grant scheme overview

Check Your £7,500 Heat Pump Grant Eligibility

The Boiler Upgrade Scheme can reduce your heat pump cost by £7,500. Check your eligibility.

up to £7,500

Grant available

Key eligibility factors:

Replacing gas/oil/LPG boiler
Property suitable for heat pump
England or Wales

Check your property against the live MHCLG EPC register to see your current band and every grant you qualify for — free, in under a minute.

Check your property

What affects your heat pump cost

Property size

Larger homes need more powerful systems. A 3-bed semi might need a 7–9kW unit, while a 5-bed detached could need 12–16kW, significantly affecting the unit cost.

Insulation quality

Well-insulated homes need smaller, cheaper systems. Poorly insulated homes may need a larger unit plus insulation improvements before installation.

Existing system

If your existing pipework and radiators are compatible, installation is simpler and cheaper. Older systems may need significant modification.

Location

Installation costs vary by region. Urban areas typically have more installer competition, while rural properties may incur additional travel charges.

Get accurate heat pump quotes

Connect with MCS-certified installers for accurate quotes based on your property. All installers can apply for the £7,500 BUS grant on your behalf.

Up to 3 MCS-certified installers. No obligation quotes.

Installer partner

OVO Solar & Heating

OVO Solar & Heating provides heat pump installation quotes from a recognised UK energy brand. The £7,500 BUS grant offsets a substantial portion of the install cost — OVO handles the application alongside survey and commissioning. The 10-year workmanship warranty is five times the industry standard.