Heat Pumps UK 2026

✅ Strong case — replacing oil or LPG

Oil and LPG are expensive fuels. A heat pump with a SCOP of 3.0 is already significantly cheaper to run, even before the £9,000 grant (from July 2026). The financial case is compelling — payback often under 10 years even without further energy price rises.

⚡ Decent case — replacing gas, switching tariff

At current prices, a well-specified heat pump on a standard tariff costs broadly the same to run as a gas boiler. Switch to a dedicated heat pump tariff like Octopus Cosy and it becomes cheaper. The £7,500 grant reduces upfront cost significantly — after grant, a 3-bed semi can cost similar to a replacement boiler.

⚠️ Weaker case — poorly insulated home

Heat pumps work best in well-insulated homes. Poor insulation forces the system to work harder, reducing efficiency and increasing running costs. Sort insulation first — cavity wall and loft insulation are cheap by comparison and dramatically improve heat pump performance.

What pushes costs up

• ❌ Radiator upgrades needed
• ❌ New hot water cylinder
• ❌ Poor existing insulation
• ❌ Complex installation
• ❌ Premium brands

What brings costs down

• ✅ £7,500 BUS grant
• ✅ 0% VAT until March 2027
• ✅ Well-insulated property
• ✅ Existing suitable radiators
• ✅ Getting 3+ quotes

The main government grant for heat pumps. The £7,500 is deducted directly from your installer’s invoice — you never receive the money yourself and never need to pay the full amount upfront. No application needed on your part — your MCS-certified installer handles everything.

Check eligibility on GOV.UK →

Scottish homeowners can access the Home Energy Scotland Grant and Loan scheme — often more generous than the BUS. Includes an optional interest-free loan on top of the grant. Contact Home Energy Scotland on 0808 808 2282 for a personalised assessment.

VAT on heat pump installations is 0% until March 2027. No application needed — applied automatically by your installer. Stacks on top of the BUS grant.

The most common type in the UK. An outdoor unit extracts heat from the air — even in cold weather — and transfers it inside via a refrigerant circuit. Needs a small amount of outdoor space for the unit. Relatively straightforward to install and eligible for the full £7,500 BUS grant. Also works as an air conditioner in summer on most models.

Uses pipes buried in the ground (horizontal trenches or vertical boreholes) to extract heat. More efficient than air source — typically SCOP 4.0+ — because ground temperature is more stable than air. Higher installation cost due to groundworks. Best for larger properties with outdoor space or those replacing oil/LPG. Costs £18,000–£35,000 before grant.

Wall-mounted units that heat and cool individual rooms — the same technology as a split system air conditioner. Not eligible for the BUS grant as they don’t provide central heating or hot water. Best as a supplement to existing heating or for homes without central heating systems. See our Air Conditioning guide for more detail.

Do heat pumps work in cold UK winters?

Yes — modern air source heat pumps work efficiently down to -20°C. UK winters rarely drop below -10°C even in Scotland. Efficiency does reduce in very cold weather but the system continues to heat your home effectively. Proper sizing by your installer accounts for your local climate.

Do I need to upgrade my radiators?

Not always. Heat pumps work at lower flow temperatures than gas boilers (45–55°C vs 70–80°C), which means radiators need to be larger to deliver the same heat output. Many modern homes with oversized radiators are fine. A proper heat loss survey will identify whether upgrades are needed — typically 1–3 radiators in older homes.

Can I get the BUS grant if I have a combi boiler?

Yes — the Boiler Upgrade Scheme applies to homes replacing any fossil fuel heating system including gas combi boilers. You must use an MCS-certified installer who will apply for the grant on your behalf.

How noisy are heat pumps?

Modern heat pumps are much quieter than older models — typically 40–50dB at 1 metre, similar to a quiet conversation or a refrigerator hum. Permitted development rules require the unit to produce no more than 42dB at 1 metre from a neighbour’s window or door. Most quality installations comfortably meet this.

Do I need planning permission?

In most cases no — air source heat pumps fall under permitted development for houses in England. Exceptions include listed buildings, some conservation areas, and flats. Your installer will confirm before proceeding.

How long does installation take?

A typical air source heat pump installation takes 2–3 days. This includes fitting the outdoor unit, connecting to your heating system, installing a new hot water cylinder if needed, and commissioning. Ground source installations take longer due to groundworks — typically 1–2 weeks.