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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 | £12,500 |
| Government heat pump grant | -£7,500 |
| Amount you’ll pay once heat pump grant taken off | £5,000 |
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:
You may be able to spread the remaining cost of your heat pump through the government-backed Warm Homes Loan Scheme. Launched in October 2026, the government says it offers low- or no-interest loans for eligible improvements, including heat pumps, solar panels and battery storage.
You can combine a loan with a Boiler Upgrade Scheme grant, but unlike the grant, you’ll need to repay it. Find the participating lenders on GOV.UK. Some only offer finance through particular installers, so compare installation quotes and the total amount you’ll repay, including interest and fees. You’ll need to pass the lender’s eligibility, credit and affordability checks.
Several UK mortgage lenders provide cashback incentives to homeowners who install heat pumps, including:
Buying a house or remortgaging and want to know which lenders offer incentives for installing a heat pump? Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
How much a heat pump costs to run will depend on a range of factors including:
This is a difficult question to answer because it depends on what type of existing system you already have and how well insulated your home is. Let’s break these down:
These are the potential annual savings – and increased costs – 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 | £260 |
| New (A rated) boiler | -£40 |
| Old electric storage heaters | £1,200 |
| New electric storage heaters | £700 |
| Old (G rated) oil boiler | £65 |
| New (A rated) oil boiler | -£220 |
| Old (G rated) LPG boiler | £700 |
| New (A rated) LPG boiler | £270 |
| Coal | £700 |
A survey published in January 2026 found 66% of heat pump owners said their homes were more expensive to heat with heat pumps than their previous system.
Only 15% of those surveyed said that their home was less expensive to heat, while 19% said there was no difference, or they were unsure.
The survey of 1,000 heat pump owners was commissioned by the Green Britain Foundation, run by Dale Vince. The Ecotricity owner told The Times that households are being “mis-sold” heat pumps.
“For people that live in really modern, well insulated homes, then the bill won’t go up very much. But that’s very rare. The reality for people on the ground is a disappointment, an expensive one.”
However, the newspaper reported that government sources pointed to surveys conducted by the Department for Energy Security and Net Zero, which said that 89% of property owners were satisfied with their heat pumps after a winter of use.
The same report said that property owners had “mixed experiences with their total energy bills” after installing a heat pump, “though most commonly they reported that their bills had decreased.”
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.
Compare energy deals, see how much you can save on electricity and gas, switch provider today.
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).
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 | £24,000 |
| Government heat pump grant | £7,500 |
| Amount you’ll pay after grant taken off | £16,500 |
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 | £490 |
| New (A rated) boiler | £40 |
| Old electric storage heaters | £2,000 |
| New electric storage heaters | £1,200 |
| Old (G rated) oil boiler | £280 |
| New (A rated) oil boiler | -£190 |
| Old (G rated) LPG boiler | £1,200 |
| New (A rated) LPG boiler | £550 |
| Coal | £1,300 |
The average cost of a ground source heat pump is nearly £16,500, once the government grant has been taken off. This is £13,500 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 £490 a year, it would take over 27 years to recoup the extra money spent on the heat pump.
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 Energy Performance Certificate or EPC. You can check whether 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.
