Heat Pump Costs UK 2026: What You'll Actually Pay (After Grants)
Before the grant, heat pumps cost £8,000–£15,000. After the £7,500 Boiler Upgrade Scheme grant, most homeowners pay £500–£7,500, comparable to a new gas boiler. Here's the real breakdown.
Heat pump costs UK: this is one of the most searched home energy questions in 2026, and for good reason. Headlines range from "heat pumps cost £20,000" to "get one for free": neither is typically true for most homeowners. The real answer sits somewhere between £500 and £12,000 after the government grant, depending on your property, current heating system, and whether you need additional work.
This guide cuts through the noise with real 2026 pricing data, real running cost comparisons, and a clear explanation of what the £7,500 Boiler Upgrade Scheme grant actually covers.
Key numbers at a glance
Air Source Heat Pump Cost UK: Before Grants
A fully installed air source heat pump in the UK costs £8,000–£15,000 before any grants. Across real installs under the grant scheme, the median air source installation cost £13,041 in 2025/26, according to Nesta's analysis of Boiler Upgrade Scheme data, so about £5,500 after the £7,500 grant. Ground source heat pumps cost significantly more, typically £18,000–£35,000, due to the groundworks required. Costs by type are in the table further down.
| Property Size | Before Grant | After £7,500 Grant | System Size |
|---|---|---|---|
| 1–2 bed flat/house | £8,000–£10,000 | £500–£2,500 | 5–7kW |
| 3 bed semi-detached | £9,000–£13,000 | £1,500–£5,500 | 8–10kW |
| 4 bed detached | £11,000–£17,000 | £3,500–£9,500 | 10–14kW |
| Large/older property | £14,000–£20,000 | £6,500–£12,500 | 14kW+ |
Heat Pump Cost by Type
Most UK installs are air source, but the grant covers three types of heat pump at different rates, and one popular option isn't covered at all:
| Type | Before grant | BUS grant | After grant |
|---|---|---|---|
| Air source (air-to-water) | £8,000–£15,000 | £7,500 | £500–£7,500 |
| Ground source | £18,000–£35,000 | £7,500 | £10,500–£27,500 |
| Air-to-air, one room | £1,800–£4,500 | £2,500 | Up to £2,000 |
| Air-to-air, multi-room | £3,500–£8,000 | £2,500 | £1,000–£5,500 |
| Hybrid (heat pump + boiler) | Around £16,000 with a new combi | Not eligible | Around £16,000 |
Ground source costs more because of the trenches or boreholes, but runs more efficiently. See our ground source guide.
Air-to-air (a split system that heats and cools) gets a £2,500 grant if it replaces your fossil-fuel heating (not if it sits alongside a boiler), but doesn't heat water or radiators. Costs are in our split system guide.
Hybrid systems pair a heat pump with a boiler. Checkatrade puts a typical install with a new combi at around £16,000, and hybrids can't get the BUS grant.
What Pushes Heat Pump Costs Up
The headline installation figure rarely tells the full story. Several factors can add significantly to the total cost, and a good installer will survey your property and flag these before quoting.
Heat pumps run at lower flow temperatures than gas boilers. If your existing radiators are undersized they won't deliver enough heat: typically 1–3 need replacing in an average home. More in our heat pump radiators guide.
Heat pumps need a hot water cylinder, if you currently have a combi boiler you'll need one installed. This is the most common hidden cost for combi boiler replacements.
A poorly insulated home needs a larger, more expensive heat pump and has higher running costs. Improving insulation first reduces both the system size needed and ongoing bills. See our insulation guide.
Older properties sometimes need consumer unit upgrades or additional circuits to handle the heat pump's electrical demand.
The Boiler Upgrade Scheme: £7,500 Grant Explained
The Boiler Upgrade Scheme (BUS) is the UK government's main grant for replacing fossil fuel heating with a heat pump. It provides £7,500 towards the cost of an air source or ground source heat pump, deducted directly from your installer's invoice. You never pay the full amount upfront.
Key BUS facts for 2026
- £7,500 for air source and ground source heat pumps
- £9,000 for oil/LPG homes with no mains gas (the extra £1,500 runs until March 2027). What the £9,000 grant means
- £2,500 for air-to-air heat pumps
- Funded to 2029/30 (£2.7 billion under the government's Warm Homes Plan)
- Available in England and Wales only
- No means testing: you just need to own the property (landlords and second homes count) and be replacing gas, oil, LPG or electric heating
- Your installer applies: you do nothing except choose an MCS-certified installer, who must fit it within 120 days
Scotland: Scottish homeowners use the Home Energy Scotland Grant and Loan scheme instead of BUS: up to £9,000 grant plus an optional interest-free loan. Call 0808 808 2282 for details.
What It Costs to Run
The install is only half the cost. For a 3-bed semi needing 12,000 kWh of heat a year, at October 2026 price cap rates:
| Heating system | Standard tariff | Heat pump tariff |
|---|---|---|
| Gas boiler (92%) | ~£1,040/year | N/A |
| Heat pump (SCOP 2.9) | ~£1,090/year | ~£785/year |
| Heat pump (SCOP 3.5) | ~£900/year | ~£650/year |
| Oil boiler | ~£1,500+/year | N/A |
Heat pump tariff figures assume an average of around 19p/kWh; standing charges excluded. For the full breakdown see heat pump vs gas boiler, for real usage see how much electricity a heat pump uses, or run your own numbers in the heat pump calculator.
Is the cost worth it for your home?
It depends mostly on what you're replacing: oil, LPG and electric heating are clear wins, gas is closer. Our are heat pumps worth it? guide works it through fuel by fuel.
How to Get an Accurate Heat Pump Quote
Online calculators give rough estimates. The only way to get an accurate cost is a proper heat loss survey: a calculation of exactly how much heat your home loses and what size system is needed to replace it. A good MCS-certified installer will always carry this out before quoting.
What to check when getting quotes
- Installer is MCS certified: required for BUS grant
- Quote includes a full heat loss calculation
- BUS grant is included: deducted from the invoice
- Quote covers all associated work: cylinder, radiators if needed
- Get at least 3 quotes: prices vary significantly between installers
Heat Pump Costs: FAQs
Further Reading
Published June 2026, updated September 2026. Running costs use the October 2026 Ofgem price cap (electricity 26.32p/kWh, gas 7.97p/kWh). Costs and grant figures are based on industry data current at time of writing and may change. Always get a formal quote from an MCS-certified installer before making any decisions. Cool Power Co is an independent website and is not affiliated with any manufacturer, installer, or government body.
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