Heat Pump Installation Cost
£7,000–£15,000
typical UK range
Updated
A heat pump installation costs £7,000–£15,000 in the UK before government grants. After the Boiler Upgrade Scheme grant of £7,500, many homeowners pay £500–£7,500. Air source heat pumps are the most common type; ground source cost significantly more.
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How much does each option cost?
| Type / scope | Typical cost | Notes |
|---|---|---|
| Air source heat pump — small property (1-2 bed)5–8kW unit for a well-insulated small property. Includes external unit, internal components, and installation. Before grant | £7,000–£10,000 | 5–8kW unit for a well-insulated small property. Includes external unit, internal components, and installation. Before grant |
| Air source heat pump — medium property (3 bed)8–12kW unit. The most common installation type. Includes unit, hot water cylinder, and full installation. Before grant | £9,000–£13,000 | 8–12kW unit. The most common installation type. Includes unit, hot water cylinder, and full installation. Before grant |
| Air source heat pump — large property (4+ bed)12–16kW unit. Larger unit cost plus more complex distribution system | £11,000–£15,000 | 12–16kW unit. Larger unit cost plus more complex distribution system |
| Ground source heat pumpIncludes ground loop (borehole or horizontal trenches). Very high installation cost but higher efficiency. Best for larger rural properties | £15,000–£35,000 | Includes ground loop (borehole or horizontal trenches). Very high installation cost but higher efficiency. Best for larger rural properties |
| Underfloor heating (per room, additional)Heat pumps work most efficiently with underfloor heating or larger radiators — if your existing radiators are too small, replacement or underfloor heating adds cost | £500–£1,500 | Heat pumps work most efficiently with underfloor heating or larger radiators — if your existing radiators are too small, replacement or underfloor heating adds cost |
| Boiler Upgrade Scheme grant (air source)Government grant deducted from your installation cost. Applied by the installer. Reduces customer net cost to £500–£7,500 for most air source installations | £-7,500–£-7,500 | Government grant deducted from your installation cost. Applied by the installer. Reduces customer net cost to £500–£7,500 for most air source installations |
What affects the price?
- Type of heat pump — air source (most common, lower cost) vs ground source (much higher due to ground loop installation) vs water source
- Property size and heat loss — a larger home with poor insulation needs a larger, more expensive unit. A heat loss calculation determines the correct specification
- Existing heating distribution — heat pumps work most efficiently at lower flow temperatures, ideal for underfloor heating or larger radiators. If your property has small radiators, upgrading them adds significant cost
- Hot water cylinder requirement — heat pumps heat water differently from boilers; an unvented cylinder (approximately £600–£1,200) is usually required
- Boiler Upgrade Scheme eligibility — the £7,500 grant substantially reduces the net cost for eligible properties. Properties with existing gas connections are eligible if they meet EPC requirements
- Location — London and South East labour rates are higher; rural locations may have higher travel costs
- Planning requirements — permitted development rights usually allow heat pump installation, but listed buildings or conservation areas may require planning permission
What's included in the price?
- Heat pump unit (outdoor and indoor components)
- Hot water cylinder (usually required with a heat pump)
- All refrigerant pipework between outdoor and indoor units
- Electrical connections (heat pumps run on electricity, not gas)
- Controls — smart thermostat, zone controls, monitoring app
- Commissioning and system balancing
- MCS certification documentation (required for Boiler Upgrade Scheme grant)
- Building Regulations compliance (Part L)
- F-gas certificate for the refrigerant circuit
- Benchmark or equivalent commissioning record
How long does it take?
A standard air source heat pump installation takes 2–4 days for a typical domestic property. Day 1–2 involves installing the outdoor unit, running refrigerant pipework, and fitting the indoor unit and hot water cylinder. Day 3–4 covers electrical work, controls, commissioning, and system balancing. Ground source installations take significantly longer (1–2 weeks) due to the groundworks involved for the ground loop.
Do I need one?
A heat pump is worth considering if: your property is well-insulated (EPC rating C or better, or you plan to insulate), you are on oil or LPG heating (where running costs are typically much higher than gas), or you want to reduce your carbon footprint. For properties on mains gas, the running cost case depends heavily on electricity-to-gas price ratios. At 2026 energy prices, running cost parity is achievable with a high-performance (COP 3+) heat pump in a well-insulated home. The Boiler Upgrade Scheme grant substantially improves the financial case.
How do you avoid overpaying?
- Apply for the Boiler Upgrade Scheme grant — your MCS-certified installer handles this, and the £7,500 grant directly reduces your installation cost
- Insulate before installing — a better-insulated property needs a smaller, cheaper unit and achieves higher efficiency. Cavity wall insulation (often free or subsidised) and loft insulation pay for themselves many times over through reduced heat pump running costs
- Get quotes from multiple MCS-certified installers — at least 3. Heat pump installation pricing varies significantly
- Consider the existing distribution system — if your property already has underfloor heating or large panel radiators, heat pump compatibility is higher and system upgrades less costly
- Check other schemes — ECO4, the Home Upgrade Grant, and local authority schemes may provide additional support depending on your household income and property EPC
- Don't oversize the unit — a correctly sized heat pump based on a proper heat loss calculation is more efficient than a larger unit. Oversizing is common and wasteful
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Frequently asked questions
We’re happy to answer all your questions.
What is the Boiler Upgrade Scheme?
A UK government grant of £7,500 toward the cost of an air source or ground source heat pump. Homeowners apply through their MCS-certified installer. The grant is deducted from your bill — you pay the net amount. It runs until at least March 2028. Properties must have a current EPC (not expired) to be eligible.
Is a heat pump cheaper to run than a gas boiler?
At 2026 energy prices (electricity approximately 28p/kWh, gas approximately 7p/kWh), heat pump running costs are similar to or slightly above gas boiler costs per unit of heat output for a typical well-insulated property. A heat pump with COP of 3.5 uses roughly 1 unit of electricity per 3.5 units of heat — comparable to gas. For properties on oil or LPG, heat pumps are typically cheaper to run.
Does my property need to be well-insulated for a heat pump?
Yes — heat pumps are most efficient in well-insulated properties. Poor insulation means the heat pump must work harder (lower COP), which increases running costs. EPC rating C or above is the recommended minimum. Improving insulation before installing a heat pump is the single most impactful preparation.
Can a gas engineer install a heat pump?
Gas engineers with additional MCS certification and the relevant heat pump qualification (City & Guilds 6187 or equivalent) can install heat pumps. F-gas Category I qualification is also required for refrigerant handling. Many gas engineers are gaining these qualifications as the heating market transitions.
How loud is an air source heat pump?
Modern air source heat pumps typically operate at 40–50 dB — roughly the volume of a refrigerator or quiet conversation. Newer models are significantly quieter than older ones. Planning rules require the unit to be installed at least 1 metre from a property boundary, and units in certain conservation areas may require planning permission.
Sources & References
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