How much does an air source heat pump cost in the UK?

An air source heat pump typically costs between £8,000 and £15,000 fully installed, depending on the size of your home and the complexity of the installation. After the Boiler Upgrade Scheme grant of £7,500, the net cost is typically £2,500 to £7,500. Additional costs may apply if you need new radiators, underfloor heating, or improved insulation.

What grants are available for heat pumps in the UK in 2026?

The Boiler Upgrade Scheme (BUS) provides a £7,500 grant towards the cost of an air source heat pump in England and Wales. Scotland offers £7,500–£9,000 through the Home Energy Scotland Grant and Loan scheme. You must use an MCS-certified installer to qualify. The grant is paid directly to the installer, reducing your upfront cost.

Are air source heat pumps cheaper to run than gas boilers?

It depends on your electricity and gas tariffs. Heat pumps are roughly 3 times more efficient than gas boilers, but electricity costs about 4 times more per unit than gas. In typical conditions, running costs are similar to or slightly lower than a gas boiler. With a time-of-use tariff or solar panels, heat pumps can be significantly cheaper to run.

Do air source heat pumps work in cold weather UK?

Yes. Modern air source heat pumps work efficiently down to around -15°C to -20°C. UK temperatures rarely fall below -10°C. Efficiency does decrease as temperatures drop, but modern systems maintain good performance throughout a typical British winter.

Do I need planning permission for an air source heat pump UK?

In most cases, no. Air source heat pumps are covered by permitted development rights in England, Scotland, and Wales, provided they meet certain noise and distance requirements. You need planning permission in conservation areas, for listed buildings, or if the unit exceeds certain height limits. Always check with your local planning authority.

Air Source Heat Pumps UK — Costs, Grants, and Running Costs in 2026 | PocketWise

If you are planning insulation, heating upgrades, and grant-backed home improvements together, use the Energy Efficiency Hub as your main route map.

Air source heat pumps are one of the leading alternatives to gas boilers. With government grants covering a significant portion of the cost and gas boilers due to be phased out in new-build homes, understanding heat pumps is increasingly important. This guide covers the real costs, available grants, running costs, and whether a heat pump suits your home.

Read more: See our Energy Grants guide for a complete overview of this topic.

How Air Source Heat Pumps Work

An air source heat pump extracts heat from the outside air — even in cold weather — and uses it to heat your home and hot water. It works like a refrigerator in reverse.

Component	Purpose
Outdoor unit	Extracts heat from the air using a fan and refrigerant
Compressor	Compresses the refrigerant to increase its temperature
Heat exchanger	Transfers heat to your central heating system
Indoor unit / cylinder	Heats your water and distributes warmth

Key Performance Metric: COP

Term	What it means
COP (Coefficient of Performance)	The ratio of heat output to electricity input
Typical COP	2.5–3.5 (meaning 1kW of electricity produces 2.5–3.5kW of heat)
Seasonal COP (SCOP)	Average COP across the whole year, accounting for winter drops

A COP of 3.0 means for every £1 of electricity you put in, you get £3 worth of heating. This is why heat pumps are more efficient than gas boilers (which operate at 85–95% efficiency at best).

How Much Does an Air Source Heat Pump Cost?

Installation Costs (Before Grant)

Home size	Heat pump size	Typical installed cost
Small (1–2 bed flat/house)	5–7 kW	£7,000 – £10,000
Medium (3 bed semi)	8–12 kW	£9,000 – £13,000
Large (4+ bed detached)	12–16 kW	£12,000 – £18,000

What Is Included

Item	Typical cost
Heat pump unit	£3,000 – £7,000
Installation labour	£2,000 – £4,000
Hot water cylinder	£500 – £1,500
Pipework and connections	£500 – £2,000
Controls and thermostat	£200 – £500
Commissioning	Included in installation

Additional Costs You May Need

Extra	Typical cost	When needed
Larger radiators	£2,000 – £4,000	If existing radiators are too small for heat pump temperatures
Underfloor heating	£3,000 – £8,000	Ideal partner for heat pumps but not always required
Loft and wall insulation	£1,000 – £5,000	Essential for heat pump efficiency
Electrical upgrade	£500 – £1,500	If your consumer unit or supply needs upgrading
Radiator upgrades	£150 – £300 per room	Replacing small radiators with larger ones

Cost After the Boiler Upgrade Scheme Grant

Scenario	Installed cost	Grant	Net cost
Small home	£8,000	£7,500	£500
Average home	£11,000	£7,500	£3,500
Large home	£15,000	£7,500	£7,500
Average + new radiators	£14,000	£7,500	£6,500

Grants and Financial Support

Boiler Upgrade Scheme (BUS) — England and Wales

Detail	Information
Grant amount	£7,500 for air source heat pumps
Where	England and Wales
Eligibility	Homeowner (not new build), valid EPC, MCS-certified installer
How it works	Grant is paid to the installer, who deducts it from your bill
Deadline	Currently available — check for scheme extensions
Multiple grants	One per property

You must use an MCS-certified installer to qualify. The installer handles the grant application — you sign a voucher and the grant is deducted from the cost. You do not receive cash.

Scotland — Home Energy Scotland

Detail	Information
Grant	Up to £7,500 (or £9,000 in rural/island areas)
Loan	Interest-free loan of up to £7,500
Combined	Up to £15,000+ of support
Contact	Home Energy Scotland on 0808 808 2282

Other Support

Scheme	Details
ECO4	Free or subsidised heat pump for eligible low-income households
0% VAT	No VAT on heat pump installations (energy-saving materials)
Local authority grants	Some councils offer additional support — check your council

Running Costs Compared

Annual Heating Costs

Heating system	Efficiency	Fuel cost per kWh	Annual cost (average 3-bed home)
Gas boiler (modern)	90%	~7p (gas)	£850 – £1,100
Oil boiler	85%	~8p (oil)	£1,000 – £1,400
Electric storage heaters	100%	~24p (electricity)	£2,000 – £2,800
Air source heat pump	COP 3.0	~8p effective (24p ÷ 3)	£700 – £1,000
Heat pump + TOU tariff	COP 3.0	~5p effective	£450 – £700

Key insight: Although electricity costs roughly 3–4 times more per unit than gas, a heat pump’s efficiency (COP of 3.0+) means the effective cost per unit of heat delivered is comparable. With a time-of-use (TOU) tariff that offers cheap overnight electricity, heat pumps can be significantly cheaper.

Savings Compared to Other Systems

Replacing	Typical annual saving
Old gas boiler (70% efficient)	£200 – £500
Modern gas boiler (90% efficient)	£0 – £200
Oil boiler	£200 – £600
LPG boiler	£400 – £800
Electric storage heaters	£800 – £1,500
Direct electric heating	£1,000 – £2,000

Heat pumps save the most money when replacing electric heating, oil, or LPG. Savings versus a modern gas boiler are smaller and depend heavily on tariff rates.

Maximising Savings

Strategy	Impact
Switch to a time-of-use electricity tariff	Run the heat pump overnight at 5–10p/kWh instead of 24p
Add solar panels	Generate free electricity to run the heat pump
Improve insulation	The less heat you lose, the less the heat pump needs to produce
Use weather compensation controls	The system adjusts output based on outside temperature
Keep the heat pump running at steady, low temperatures	More efficient than cycling on and off at high temperatures

Is Your Home Suitable?

Ideal Conditions

Factor	Ideal	Possible with upgrades
Insulation	Well-insulated (loft, walls, floors)	Can improve insulation first
Radiators	Large enough for low-temperature operation (45–50°C)	Can upgrade radiators
Outdoor space	Room for the outdoor unit (about the size of a washing machine)	Most gardens accommodate this
Hot water	Space for a hot water cylinder	If you currently have a combi boiler, you will need to add a cylinder
Electrical supply	Single-phase OK for most domestic units	Three-phase rarely needed

Homes Where Heat Pumps Work Best

Property type	Suitability
Well-insulated modern home	Excellent — may need no upgrades
Detached house with garden	Excellent — plenty of space
Semi-detached house	Good — check noise distance from neighbours
Older house with cavity walls	Good, if walls and loft are insulated
Solid-wall older home	Can work but may need external wall insulation
Flat or terraced house	Possible but space for outdoor unit and noise may be issues

Homes Where Heat Pumps Are More Challenging

Situation	Challenge
Very poorly insulated	Heat demand too high — insulate first
No space for outdoor unit	The unit needs airflow and a solid base
Noise-sensitive location	The outdoor unit produces some noise (similar to a fridge)
Listed building	Planning permission may be needed
Very large, draughty house	May need a large, expensive system

Planning Permission

Situation	Permission needed?
Detached house	No (permitted development)
Semi-detached house	No (if noise rules met)
Terraced house	No (if noise and distance rules met)
Flat	Usually yes
Listed building	Yes
Conservation area	Possibly — check with council
Noise limits	Must not exceed 42dB at nearest neighbour’s window

Heat Pumps vs Gas Boilers

Factor	Air Source Heat Pump	Gas Boiler
Upfront cost	£8,000 – £15,000 (before grant)	£2,000 – £4,000
Running cost	£700 – £1,000/year	£850 – £1,100/year
Efficiency	250–350% (COP 2.5–3.5)	85–95%
Lifespan	20–25 years	10–15 years
Maintenance	Annual service £100–£200	Annual service £60–£120
Carbon emissions	Low (zero if using renewable electricity)	Significant
Government support	£7,500 BUS grant	None
Future-proofing	Gas boiler ban in new builds approaching	Will need replacing
Heating delivery	Best with large radiators or underfloor heating	Works with any radiators
Hot water	Needs a cylinder	Combi boilers heat on demand

How to Get an Air Source Heat Pump

Step by Step

Step	Action
1	Check your home’s insulation — improve if needed
2	Get a current EPC (required for the BUS grant)
3	Get quotes from at least 3 MCS-certified installers
4	Installer designs the system and sizes it for your home
5	Installer applies for the BUS grant on your behalf
6	Grant is approved (usually within days)
7	Installation takes 2–5 days
8	System is commissioned and you are shown how to use it

Choosing an Installer

What to check	Why
MCS certification	Required for the BUS grant and a mark of quality
At least 3 quotes	Prices vary significantly between installers
References	Ask to speak to previous customers
System design	A proper heat loss calculation should be done for your home
Warranty	Look for 5–10 year warranties on the unit
Aftercare	Annual servicing should be offered

Red Flags

No MCS certification
No heat loss survey before quoting
Oversized or undersized system for your home
Pressure to commit without comparing quotes
No mention of potential radiator or insulation upgrades

Maintenance

Task	Frequency	Cost
Annual service	Every year	£100 – £200
Filter cleaning	Every 6 months	DIY
Check refrigerant levels	During annual service	Included
Clear debris from outdoor unit	Regularly	DIY
Check defrost cycle works	Winter	DIY

Heat pumps have fewer mechanical parts than gas boilers and generally require less maintenance. The outdoor unit should be kept clear of leaves, snow, and debris.

Summary

Key point	Details
Typical cost installed	£8,000 – £15,000
BUS grant	£7,500 (England and Wales)
Net cost after grant	£500 – £7,500
Running cost	£700 – £1,000/year (similar to gas)
Efficiency	250–350%
Lifespan	20–25 years
Best savings vs	Oil, LPG, or electric heating
Planning permission	Usually not needed
VAT	0%

Air source heat pumps are a long-term investment that can cut heating bills (especially if replacing oil or electric), reduce your carbon footprint, and future-proof your home against the move away from fossil fuel heating. The £7,500 BUS grant makes the upfront cost much more manageable.

Related guides:

Air Source Heat Pumps UK — Costs, Grants, and Running Costs in 2026

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