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Heat pumps can be expensive to install, even with the help of government grants. We look at how much you should expect to pay for one, as well as the cost of running a heat pump to help you weigh up whether to get one.
KEY INFORMATION
Air source heat pumps (ASHPs) are the most common type of heat pumps in the UK. They extract heat from the air to the water in your central heating system. This heats rooms in your home via radiators or underfloor heating and it can also heat water stored in a hot water cylinder.
Here’s what you can expect in terms of the cost of an air source heat pump:
While air source heat pumps are the most popular type, you can also get ground source heat pumps. These are more energy efficient but come with much higher installation costs. Click here to find out more about ground source heat pumps.
| Cost | Amount £ |
|---|---|
| Cost of installing an air source heat pump | £13,000 |
| Government heat pump grant | -£7,500 |
| Amount you’ll pay once heat pump grant taken off | £5,500 |
One of the main reasons why we have yet to see huge numbers of people installing heat pumps in their home is because installation costs can be very high. Our recent research showed that more than one third of homeowners (36%) have been held back from making energy efficient improvements to their home because of the costs involved, with 18% saying that the savings may not justify the up-front cost
If your home is modern and well insulated, and your gas boiler needs replacing, it’s worth investigating and costing up a heat pump. Also, if you are undergoing major home renovations or having a home extension, you may want to investigate getting one too. However, even in a modern home you may need to have work done to your house such as replacing your radiators with bigger ones when getting a heat pump which adds to the costs.
But if your home is poorly insulated and draughty, making the necessary improvements so you’ll get the most out of your heat pump could be very expensive. That said, improving your home’s energy efficiency will reduce your energy bills, however you heat your home. Find out more in our guide How to make your home more energy efficient.
By comparison, the average cost of installing and supplying a new boiler is around £3,000, although this can vary depending on the boiler.
The UK government offers financial support to encourage homeowners to get a heat pump installed:
Several UK mortgage lenders provide cashback incentives to homeowners who install heat pumps, including:
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On average, heat pumps cost around £1,540 to run per year, according to Energy Saving Trust. However, how much your running costs will be will depend on a range of factors including:
Whether or not a heat pump will save you money on your energy bills depends on your current heating system. Here’s a breakdown of what you may expect in cost savings:
These are the potential annual savings of installing an air source heat pump in a 3 bedroom semi in Great Britain, with radiator upgrades as needed*.
| Existing system | Energy bill saving (£/year) with a heat pump |
|---|---|
| Old (G rated) boiler | £290 |
| New (A rated) boiler | -£3 |
| Old electric storage heaters | £1,200 |
| New electric storage heaters | £700 |
| Old (G rated) oil boiler | £280 |
| New (A rated) oil boiler | -£55 |
| Old (G rated) LPG boiler | £650 |
| New (A rated) LPG boiler | £260 |
| Coal | £650 |
According to British Gas, the average air source heat pump cost £5,690 to install in 2023. This is £2,690 more than the average cost of a gas boiler of £3,000. If you replaced an Old (G rated) gas boiler with a heat pump, and using Energy Saving Trust’s figures for average energy bills savings for a 3 bed semi of £290 a year, it would take over 9 years to recoup the extra money spent on an air source heat pump.
However, these figures are based on average costs and do not take into account the extra costs when servicing an air source heat pump compared to a gas boiler – read on for more on this.
Expect to pay between £150-£300 to get your air source heat pump serviced. It’s recommended that heat pumps are serviced once a year
By comparison, the average cost of a boiler service is £100.
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It’s hard to estimate the cost of repairs because it will depend on issues including:
However, Checkatrade says costs could be from £150 if it’s an electrical connection issue up to £2,000 for a new compressor. They say the average heat pump repair cost is around £500 (for example, for a new fan).
Heat pumps can be a cost-effective and environmentally friendly investment, especially for well-insulated homes.
While the upfront costs can be high, government grants, mortgage lender incentives and reduced carbon emissions make heat pumps attractive for many households.
But there’s no easy answer to whether they’ll definitely save you money on your household bills. Energy Saving Trust’s figures show they’re very slightly (£3 a year) more expensive to run than a new (A rated) gas boiler, based on a typical 3 bed semi. And servicing costs of heat pumps are more expensive than boilers too.
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
As the name suggests, ground source heat pumps (GSHPs) extract heat from the ground to heat your home. They are more efficient than air source heat pumps but come with higher upfront costs.
As well as taking into account any costs of improving your home’s insulation or changing the radiators, the amount a ground source heat pump costs to install will also depend on:
| Cost | Amount £ |
|---|---|
| Cost of installing ground source heat pump | £28,000 |
| Government heat pump grant | £7,500 |
| Amount you’ll pay after grant taken off | £21,500 |
As you can see from these diagrams, ground source heat pump installation is more expensive at it requires extensive groundworks.
| Air source heat pump | Ground source heat pump | |
|---|---|---|
| Cost | Cheaper. Average cost £5,690 once government grant taken off. | More expensive. Average cost £20,500 once government grant taken off. |
| Efficiency | Less efficient than a ground source heat pump. | More efficient than an air source heat pump. |
| Space | You’ll need space outside your home where a unit can fit to a wall or on the ground. Must have some space around it to allow air flow. | You’ll need a large amount of space outside your home to dig trenches. If space is limited, it may be possible to dig a borehole but these are more expensive. |
Here’s how much you could save by replacing an existing heating system in a typical well insulated 4-bed detached home with an average ground source heat pump installation and radiator upgrades where needed*:
| Existing system | Energy bill saving (£/year) |
|---|---|
| Old (G rated) boiler | £550 |
| New (A rated) boiler | £90 |
| Old electric storage heaters | £2,000 |
| New electric storage heaters | £1,200 |
| Old (G rated) oil boiler | £600 |
| New (A rated) oil boiler | £60 |
| Old (G rated) LPG boiler | £1,100 |
| New (A rated) LPG boiler | £500 |
| Coal | £1,300 |
The average cost of a ground source heat pump is £20,500, once the government grant has been taken off. This is £17,500 more than the cost of the average gas boiler (£3,000). If you replace an Old (G rated) gas boiler with a heat pump, and using Energy Saving Trust’s figures for average energy bills savings for a 3 bed semi of £550 a year, it would take over 30 years to recoup the extra money spent on the heat pump.
However, these figures are based on average costs and do not take into account the extra costs when servicing a ground source heat pump compared to a gas boiler. Expect to pay between £200-£350 to get your ground source heat pump serviced.
Hybrid heat pumps are systems that use a standard heat pump alongside another heat source, usually a fossil fuel (gas, oil or LPG) boiler. This boiler could be your existing boiler, or a new boiler installed at the same time as the heat pump.
If you’re installing an air source heat pump and a new boiler, expect to pay around £16,000, says Checkatrade. But if you need extra work like new pipes or radiators, costs will increase. It’s important to note that you cannot get the £7,500 government Heat Pump grant for a hybrid pump system.
Air-to-air heat pumps transfer heat from the outside air to the air inside your home, increasing the air temperature in each room. But most air-to-air heat pumps don’t heat water delivered to the taps. These aren’t typically used for heating larger homes; they’re more typically installed in smaller properties, such as flats and park homes.
To find out how energy efficient your home is, check the rating listed on your most recent Environmental Performance Certificate or EPC. You can check you have a valid EPC and/or find a copy of yours instantly by visiting the government’s EPC register.
EPCs are valid for 10 years, so if the EPC has expired or if there isn’t one for your property, you can arrange to have one completed. An EPC costs between £60 and £120, depending on your property size and other factors. You can find EPC assessors and compare quotes from energy assessors near you to get the best deal.
Get instant quotes and compare prices from Domestic Energy Assessors in your local area.
Ways to make your home more energy efficient include fitting loft insulation, replacing windows and installing solar panels. Find more information in our guide How to make your home more energy efficient.
The cost of heat pumps could reduce by 25% over the next few years, according to UK Energy Research Centre.
Heat pumps have been used across Scandinavia for years and in France, heat pumps outsold gas boilers in 2022.
No. Most people don’t need planning permission for a heat pump as they’re classified as permitted development. But different rules may apply if you live in a conservation area or in a listed building.
This depends on how much you pay for installation and how much money your heat pump saves you on energy bills compared to your current system. But if your air source heat pump costs £5,500 to install and if it saves you £290 a year on energy bills compared to your old G rated boiler, it would take nearly 19 years to pay for itself. This doesn’t include the higher servicing costs you’ll pay for a heat pump compared to a gas boiler.
