Cost Guide · Updated July 2026
Heat Pump Cost Calculator UK 2026
A typical air source heat pump costs £9,000–£16,000 installed — but after the £7,500 Boiler Upgrade Scheme grant, most UK households pay a net £2,500–£9,000. Use the bands below to estimate the price for your property.
Get 3 free heat pump quotes →Quick answer: To estimate your air source heat pump cost, size it to your home’s peak heat loss — roughly 1kW of heat pump per 25–40m² of a reasonably insulated home, giving most houses a 5–12kW unit. Gross installed prices run about £9,000 for a small flat/terrace up to £16,000+ for a large detached. Subtract the £7,500 Boiler Upgrade Scheme (BUS) grant — deducted upfront by your installer — to get your net cost. From 21 July 2026 homes off the mains gas grid can qualify for an enhanced £9,000 grant. Get the exact figure with 3 free local quotes.
How to size (and therefore price) your heat pump
A heat pump is priced mainly by its output rating in kilowatts (kW), and that rating is set by your home’s peak heat loss — how much heat the property leaks on the coldest design day (roughly −2°C in most of England). A proper installer will do a room-by-room heat loss survey to MCS standards, but you can get a good ballpark before you request quotes.
The quick rule of thumb
For a home with typical UK insulation, allow around 1kW of heat pump capacity for every 25–40m² of floor area — use the lower end (25–30m²/kW) for older, draughtier houses and the higher end (35–40m²/kW) for well-insulated or newer builds. So a 100m² mid-terrace with average insulation needs roughly a 4–5kW unit, while a 200m² detached might need 8–12kW.
Right-sizing matters for cost and comfort: an oversized heat pump cycles on and off inefficiently and costs more to buy, while an undersized one can’t keep up in a cold snap. This is why a like-for-like “swap the boiler” approach doesn’t work — a 24kW combi boiler does not mean you need a 24kW heat pump. Heat pumps run continuously at low output, so the true figure is almost always far lower.
| Property | Approx. floor area | Typical heat loss | Heat pump size |
|---|---|---|---|
| 1–2 bed flat / small terrace | 50–70m² | 3–4kW | 4–5kW |
| 2–3 bed terrace / semi | 70–100m² | 4–6kW | 5–7kW |
| 3–4 bed semi / detached | 100–150m² | 6–9kW | 7–10kW |
| 4–5 bed detached | 150–220m² | 9–13kW | 11–14kW |
| Large / period detached | 220m²+ | 13kW+ | 14–16kW+ |
These are starting estimates only. A poorly insulated period property can need 30–50% more capacity than a modern home of the same size, which is exactly why the MCS heat loss survey exists. Improving insulation first often lets you fit a smaller, cheaper unit.
Use these bands to estimate your cost
Find your property row below, read across to the gross installed price (equipment, labour, hot water cylinder, controls and commissioning), then look at the net cost after the £7,500 Boiler Upgrade Scheme grant is deducted. These are realistic mid-2026 UK figures for a standard air source heat pump install; complex or off-gas homes sit toward the top.
| Property | Heat pump size | Gross installed | BUS grant | Net you pay |
|---|---|---|---|---|
| 1–2 bed flat / small terrace | 4–5kW | £9,000–£11,000 | −£7,500 | £1,500–£3,500 |
| 2–3 bed terrace / semi | 5–7kW | £10,000–£13,000 | −£7,500 | £2,500–£5,500 |
| 3–4 bed semi / detached | 7–10kW | £12,000–£15,000 | −£7,500 | £4,500–£7,500 |
| 4–5 bed detached | 11–14kW | £14,000–£17,000 | −£7,500 | £6,500–£9,500 |
| Large / period detached | 14–16kW+ | £16,000–£20,000+ | −£7,500 | £8,500–£12,500+ |
How to read this: pick your property row, take the mid-point of the gross range as your working estimate, then subtract £7,500. For a 3-bed semi that’s roughly £11,500 gross → £4,000 net. Your real number depends on radiator work, cylinder size, and how easily the outdoor unit and pipework can be routed — the factors we cover below.
Ground source heat pumps cost more
Ground source (and water source) heat pumps are more efficient but far more expensive to install because of the ground loops or boreholes. Expect £20,000–£35,000 gross before the same £7,500 grant, so a net of roughly £12,500–£27,500. For most homes with garden space, air source is the more cost-effective choice; ground source pays back best on large rural properties currently on oil or LPG. See how they compare on our costs hub.
The £7,500 Boiler Upgrade Scheme, explained
The Boiler Upgrade Scheme (BUS) is the main government grant for heat pumps in England and Wales. It gives £7,500 off an air source or ground source heat pump (and £5,000 toward a biomass boiler in eligible rural properties). Crucially, you don’t claim it back yourself — your MCS-certified installer applies on your behalf and deducts it from your quote, so the price you pay is already net of the grant.
Do I qualify?
- The property is in England or Wales (Scotland has its own Home Energy Scotland grant and interest-free loan; Northern Ireland differs again).
- You’re replacing a fossil-fuel system (gas, oil, LPG or electric) — you can’t use it to replace an existing heat pump.
- You have a valid EPC with no outstanding recommendations for loft or cavity wall insulation (or you complete that insulation first).
- The new heat pump is up to 45kW and installed by an MCS-certified company that registers the grant.
The off-gas £9,000 uplift from 21 July 2026
From 21 July 2026, an enhanced grant of £9,000 becomes available for eligible homes that are off the mains gas grid — typically rural properties currently heated by oil, LPG, coal or electric storage heaters. This recognises that off-grid homes usually pay more to install (longer pipe runs, larger emitters) and have the most to gain from switching. If your home is off-gas, factor the higher grant into your net estimate: a £14,000 gross install becomes roughly £5,000 net instead of £6,500. Check your exact eligibility when you request quotes.
Grant rules and rates can change. Always confirm current terms with your MCS installer, who will verify eligibility before you commit. We link out to the official scheme guidance from our ask an expert page.
Is a heat pump cheaper than gas to run?
This is the question that decides whether the upfront cost is worth it — and the honest answer is “it depends on efficiency and tariff”. A heat pump doesn’t burn fuel; it moves heat, delivering roughly 3–4 units of heat per unit of electricity (a “coefficient of performance” or COP of 3–4, often quoted as a seasonal SCOP). Because electricity costs more per kWh than gas, that efficiency is what closes the gap.
| System | Efficiency | Fuel needed | Unit price (approx.) | Annual cost |
|---|---|---|---|---|
| Gas boiler | ~90% efficient | ~13,300kWh gas | ~6.5p/kWh | ~£865 |
| Heat pump (standard tariff) | SCOP 3.2 | ~3,750kWh elec | ~27p/kWh | ~£1,010 |
| Heat pump (SCOP 3.8, good install) | SCOP 3.8 | ~3,160kWh elec | ~27p/kWh | ~£855 |
| Heat pump (heat-pump tariff) | SCOP 3.5 | ~3,430kWh elec | ~15p/kWh off-peak | ~£515 |
The takeaway: on a standard electricity tariff a well-designed heat pump runs at roughly the same cost as gas or a little more. Where households genuinely save is on a specialist heat-pump tariff (several suppliers offer cheaper units for heat-pump homes) or by pairing with solar PV. The single biggest lever is install quality — a system designed to run at a low flow temperature (45–50°C rather than 65°C+) can lift the SCOP from 3.0 to 4.0 and cut running costs by a fifth or more. That efficiency is bought at the design stage, which is why we always recommend comparing multiple MCS installers rather than accepting the first quote.
Radiator upgrades and the “emitter” allowance
Heat pumps deliver water at a lower temperature than gas boilers, so heat is released more gently over a larger surface. Some of your existing radiators may need to be upsized (or you may prefer to switch some to underfloor heating) so the room still reaches temperature at that lower flow temperature. This is one of the most commonly under-quoted parts of a heat pump job, so scrutinise it in every quote.
| Work | Typical cost | Notes |
|---|---|---|
| Upsize one radiator (like-for-like larger) | £150–£350 | Bigger panel or double vs single |
| Replace several radiators (whole house) | £1,500–£3,500 | Often 4–8 rooms need changing, not all |
| New hot water cylinder (if none) | £800–£1,800 | Usually included in the gross price above |
| Underfloor heating (per room, retrofit) | £1,000–£3,000 | Best paired with a floor renovation |
Good news: many installers already fold reasonable radiator upgrades into the gross installed price, and the heat-loss survey tells you exactly which rooms need attention — often it’s only two or three, not the whole house. Ask each installer to list radiator work as a separate line so you can compare like-for-like. If a quote looks suspiciously cheap, it may have left the emitter upgrades out.
Factors that move your heat pump quote
Two identical houses can get quotes £3,000 apart. Here’s what drives the difference — and where you can influence it:
Push the price up
- Poor insulation — higher heat loss means a bigger, pricier unit and more radiator work. Insulating first can shrink the whole job.
- Long or awkward pipe runs between the outdoor unit and the cylinder/plant.
- No existing cylinder (converting from a combi) — you’ll need space and a new cylinder.
- Whole-house radiator replacement or a switch to underfloor heating.
- High-output units for large or period properties (12kW+).
- Buffer tanks, cascade systems or planning constraints (e.g. listed buildings, conservation areas, or units near a boundary needing permission).
Bring the price down
- The £7,500 BUS grant (or £9,000 off-gas from 21 July 2026) applied at source.
- Existing decent insulation and a well-sized radiator system — less remedial work.
- An easy outdoor location for the unit with a short route to the plant room.
- Competitive quoting — comparing 3 MCS installers typically saves 10–20%.
The most reliable way to control cost is to get several detailed, itemised quotes and compare the SCOP each installer designs for, not just the headline price. Start with 3 free quotes from vetted local installers or browse related pricing on our costs hub.
Worked example: a 3-bed semi in the Midlands
Our example household has a 95m² 3-bed semi with loft insulation and cavity walls already done. The heat loss survey returns 6.8kW, so the installer specifies an 8kW air source unit. Gross price including a 210-litre cylinder, new controls and three upsized radiators comes to £12,500. The installer applies the £7,500 BUS grant at source, so the family pays a net £5,000. On a dedicated heat-pump electricity tariff they spend about £520 a year on heating and hot water — a little less than the £865 they were paying on gas — while removing a fossil-fuel boiler and cutting carbon. Had they been off the gas grid after 21 July 2026, the £9,000 grant would have dropped the net cost to about £3,500.
Payback, financing and resale value
Because the grant does so much of the heavy lifting, the honest picture on fuel-cost payback is nuanced. If you switch from an efficient gas boiler onto a standard tariff, the annual saving can be small — the case for a heat pump then rests on replacing an ageing boiler you’d have to buy anyway (£2,500–£4,000 for a new gas system), removing carbon, and future-proofing against tightening gas policy. Switch from oil, LPG or electric heating, or move onto a heat-pump tariff, and the running-cost savings are real and immediate — often £300–£700 a year.
| Coming from | Typical annual saving | Simple payback |
|---|---|---|
| Old oil boiler | £400–£700 | ~7–12 years |
| Old LPG boiler | £500–£900 | ~6–10 years |
| Electric storage heaters | £600–£1,200 | ~4–8 years |
| Efficient gas + heat-pump tariff | £150–£400 | varies / boiler-replacement led |
Spreading the cost
Many installers offer finance so you can spread the net figure over 2–10 years, and in Scotland an interest-free loan sits alongside the grant. Because the £7,500 (or £9,000) is deducted upfront, you only ever finance the balance — typically £3,000–£7,000 for an average home. A well-documented, MCS-certified heat pump with its warranty and paperwork can also be a modest plus at resale, as buyers increasingly value low running costs and an up-to-date EPC.
Whatever you’re coming from, the numbers only firm up once you have itemised quotes. Compare at least three — start with 3 free quotes here.
Get your exact heat pump cost — 3 free quotes
The bands above get you close, but only a heat-loss survey gives your real number. Tell us a few details and we’ll match you with up to 3 MCS-certified installers in your area for free, no-obligation quotes — each already accounting for the £7,500 grant. Takes about 60 seconds.
No spam, no pressure. We only pass your details to vetted local installers so they can quote.
Ready to compare real prices?
Compare itemised quotes from trusted, MCS-certified heat pump installers near you — grant already deducted.
Get my 3 free quotes →Heat pump cost FAQs
Size is set by your home’s peak heat loss, not your old boiler’s output. As a rough guide, allow about 1kW of heat pump per 25–40m² of a reasonably insulated home — so a 100m² semi typically needs a 5–7kW unit. Before you commit, an MCS installer carries out a room-by-room heat-loss survey to confirm the exact figure, because insulation quality can change the answer by 30–50%.
A typical air source heat pump costs £9,000–£16,000 gross installed. After the £7,500 Boiler Upgrade Scheme grant, most households pay a net £2,500–£9,000 depending on property size and how much radiator work is needed. Use the cost bands table above for your property type, then get 3 free quotes for an exact figure.
On a standard electricity tariff, a well-designed heat pump runs at roughly the same cost as a gas boiler or slightly more, because electricity costs more per kWh. Real savings come from a specialist heat-pump tariff (cheaper off-peak units), pairing with solar, and a high-efficiency install designed for low flow temperatures. Get the SCOP up to 3.8–4.0 and running costs beat gas.
The Boiler Upgrade Scheme gives £7,500 toward an air or ground source heat pump in England and Wales, provided you’re replacing a fossil-fuel system, have a valid EPC with no outstanding insulation recommendations, and use an MCS-certified installer. The installer applies for the grant and deducts it from your bill. From 21 July 2026, off-gas-grid homes can qualify for an enhanced £9,000. Scotland and Northern Ireland run separate schemes.
Ground source heat pumps cost £20,000–£35,000 gross — far more than air source — because of the ground loops or boreholes. They get the same £7,500 grant, so net is roughly £12,500–£27,500. They’re more efficient and quieter, but for most homes with garden space air source gives a much better payback. Ground source suits large rural properties currently on oil or LPG.
Usually not all of them. Because heat pumps run at lower flow temperatures, some radiators may need upsizing so rooms still reach temperature — but the heat-loss survey often flags only two or three rooms, not the whole house. Budget £150–£350 per radiator upgraded; many installers include reasonable radiator work in the gross price. Always ask for it as a separate line so you can compare quotes fairly.
A straightforward air source install typically takes 2–5 days. Jobs that involve converting from a combi (adding a cylinder), significant radiator changes, or awkward pipe routing sit at the longer end. Ground source installs take longer because of the groundworks. Your installer will confirm the timeline after the survey.
A quality air source heat pump lasts about 15–20 years, and ground source loops can last 50+ years. Maintenance is light: an annual check by a qualified engineer (roughly £150–£250) plus keeping the outdoor unit clear of leaves and debris. Many manufacturers offer 5–7 year warranties when serviced annually.
Written by the BestBuilders Editorial Team · Reviewed by an MCS-registered heat pump installer · Last updated: July 2026.
How we produced this guide: Cost bands are built from 2026 UK installer quotes and MCS heat-loss sizing guidance, cross-checked against the government Boiler Upgrade Scheme terms for England & Wales (including the £9,000 off-gas uplift effective 21 July 2026) and current Ofgem energy unit prices. Figures are indicative estimates — always confirm with an MCS-certified installer.
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Ask a free question →Related: Heat pump grants explained · All home improvement costs · Get 3 free quotes