- A ground source heat pump typically costs £24,000 for a horizontal installation
- Heat pumps cost anywhere from £7,000 to over £30,000 to buy and install
- There are three types of heat pumps: air source, ground source and water source
- An air source heat pump costs around £10,000 on average
- Water source heat pumps can vary between £6,000 to £11,000
Heat pumps are an efficient, renewable way of replacing gas and oil boilers in most homes – provided your home is properly insulated.
Upfront heat pump costs might be a hurdle, but there a big long term benefits to be had.
These devices are three times more efficient than boilers, which means they use three times less energy to heat your home. That, and the fact that heat pumps run on electricity instead of gas, makes them eco-friendly, and a great way to lower your carbon footprint.
Heat pumps cost anywhere from £7,000 to over £30,000 to buy and install, depending on the size of your home and the type of heat pump you’re getting.
But there is help available, and if you’re concerned you might not be able to afford a heat pump, it is well worth looking into some of the available grants.
The Boiler Upgrade Scheme is a government-run initiative, offering homeowners in England and Wales a £7,500 discount on heat pumps.
If you haven’t heard of the Boiler Upgrade Scheme, you’re not alone. According to the 2024 National Home Energy Survey, 1-in-4 people haven’t heard of any government grants or initiatives at all.
However, it is becoming more popular, so much so the government has put in an extra £50 million into the scheme due to meet demand.
Before you apply, use our calculator to determine the costs you’re likely to incur when installing a heat pump. Simply enter the heat pump you’d like to get and how big your home is, and it’ll do the rest.
Heat pump cost calculator
To be sure, though, we recommend getting quotes from heat pump installers, too. Simply fill in our form and our trusted suppliers will be in touch with a quote.
How much does a heat pump cost?
There are three types of heat pumps: air source, ground source and water source. Each type has their own size and cost will vary depending on the size of your home, too. Use the table below to offer a rough estimate of costs of each of these types in the UK:
| Property size | Air source heat pump size | Air source heat pump cost | Ground source heat pump size | Ground source heat pump cost |
|---|---|---|---|---|
| Two-bedroom | Three-bedroom | Four-bedroom | Five-bedroom | |
| 5 kW | 10 kW | 13 kW | 16 kW | |
| £7,000 | £10,000 | £13,000 | £15,000 | |
| 4 kW | 8 kW | 11 kW | 13 kW | |
| £17,000 | £24,000 | £30,000 | £35,000 |
These costs are representative and don’t reflect exactly what you’ll pay. Heat pump installations are always priced on a case-by-case basis. Our ground source heat pump pricing is based on a horizontal installation, with trenches.
Air source heat pump costs
An air source heat pump costs around £10,000 on average to buy and install for a three-bedroom house.
Not counting installation, air source heat pumps cost around £5,000-£7,000, so you can see around half of what you’ll pay will be the handiwork of your installers.
Ground source heat pump costs
You’ll pay more to draw heat from the earth – a ground source heat pump typically costs £24,000 for a horizontal installation, or £49,000 for a vertical installation with boreholes.
The same principle applies as with air source heat pumps. The materials alone will only cost £10,000-£18,000, so much of what you’ll be paying for is the work that goes into digging trenches to put your ground source heat pump system in the ground.
Water source heat pump costs
The cost of water source heat pumps will depend on the size of the unit, the complexity of the installation and where you install it.
According to Check a Trade, most homes will need to install upgrades to support water-source heat pumps. These can include new pipes, radiators and sometimes, upgraded insulation, which can add to your final cost.
Water source heat pumps can vary between £6,000 to £11,000, but the additional upgrades you might need can vary between £500 to £40,000.
However, you can find all three types of heat pumps for much less at the moment.
The Boiler Upgrade Scheme can reduce the cost of heat pumps by £7,500.
Also, new heat pumps are hitting the market from the likes of British Gas and Octopus Energy that mean you can buy a heat pump for practically nothing with the grant.
To receive free, tailored quotes for a heat pump installation in your home, fill in this quick form with a few details and our installers will be in touch.
Can heat pumps save me money?
Air source heat pumps and ground source heat pumps with an efficiency rating of 300% can save the average household £4,112 over 20 years compared to a gas boiler, according to our calculations.
However, this depends on how insulated your home is, what the weather’s like where you live, and the quality of the heat pump you get.
If your home is poorly insulated, you’ll waste more energy, and save less. In a well insulated home, with a highly efficient heat pump, one rated 350% or higher, you could save around £8,025 over 20 years.
You also don’t need to replace a heat pump after 10 years, like a gas boiler. Air and ground source heat pumps typically last for 20 years.
And with electricity prices set to fall, gas prices on the rise, and heat pump technology improving all the time, switching over will soon become even more profitable.
It’s usually worth replacing a gas boiler with an air source heat pump in the UK, but it’s generally not profitable for domestic properties to install a ground source heat pump.
According to Bean Beanland, director for growth & external affairs for the Heat Pump Federation, who appeared on the Positive Energy Podcast, the transition is more expensive.
He told the Positive Energy podcast: “You see headlines all the time that heat pumps are four-to-five times more expensive, but they’re not.
“The heat pump might be 50% more than the boiler, the cost is the transition, and the transition is a one-off cost”
You can watch his full interview on YouTube or below.
Heat pump installation costs
The average air source heat pump costs £10,000 to buy an install, while a ground source heat pump typically costs £24,000, if you choose a horizontal installation.
If you don’t have 700m2 of space for looped pipes, you can get boreholes drilled 90-160 metres down into your garden, but unfortunately this is even pricier. A vertical installation cost £49,000, on average.
Ground source heat pumps are considerably more expensive than air source models because the installation process is longer, more complicated, and requires more specialised tools.
You probably won’t need to replace all your radiators, but most homes should expect to change one-third of them to ones which are 2.5 larger than the standard size.
This is because a heat pump releases heat at a lower level than a gas boiler, over a longer period of time.
Their slow-release nature is a large part of why they’re more energy efficient, but means you either need large surface areas in your heating equipment, or insulation that holds onto the warmth your heat pump generates.
You should hire a specialist to carry out the installation – it’s a complex process that only experts should take on, and it’s easy enough to find out with our best heat pump installers list.
Want to learn more? Check out our helpful guide on ground source heat pump installations.
Heat pump running costs
A ground source heat pump’s running costs for a three-bedroom home household will typically come to around £939 per year.
The average air source heat pump will cost about the same, though this can vary significantly, depending on where you live in the UK.
| Heating method | Efficiency (%) | Annual energy use (kWh) | Cost (p/kWh) | Annual bill |
|---|---|---|---|---|
| Gas boiler | 95 | 11,500 | 6.04 | £694 |
| Heat pump | 300 | 3,833 | 24.50 | £939 |
| Oil boiler | 92 | 11,875 | 11.14 | £1,337 |
| Electric boiler | 100 | 10,925 | 24.50 | £2,676 |
While the temperature of the ground stays stable throughout the year, air temperature fluctuates – which means your air source heat pump’s efficiency does as well.
You’ll currently pay around £853 per year to run a gas boiler in an average three-bedroom home, which is slightly cheaper than a typical heat pump – but that’s likely to change.
Gas prices are likely to continue rising as the UK moves away from fossil fuels, and the cost of electricity is set to fall in the near future, when the government removes green levies that artificially raise its price.
If you live in or towards the south of the country, you may well already pay less to run a heat pump than a gas boiler, as it’s warmer than the rest of the UK.
Your running costs may also be lower if your machine has a higher efficiency rating than 300%, or if your insulation is better than average.
It’s possible that your property might not be suitable for a traditional heat pump. If that’s the case, it might be beneficial to look into zero-emission boilers as an alternative.
What affects the price of my heat pump?
There are several factors that have a large effect on the cost of a heat pump, including type, size and efficiency.
Certain brands will also charge more for their products, so make sure you get quotes from at least three different heat pump installers so you can compare prices properly.
The major disadvantage to a heat pump is that it will warm your home at a relatively slow pace, but as long as you switch on the heating a little bit earlier, you should be fine.
Type
The type of heat pump is the single biggest reason behind its price.
Air-to-air heat pumps are typically five times cheaper than air source heat pumps or water source heat pumps, which are slightly cheaper than high temperature heat pumps – while ground source heat pumps are by far the most expensive.
Air-to air heat pumps cost usually between £2,000 and £4,000 and provide heating by taking the warmth from the air outside your property, running it through fan coil units and blowing it into your home.
High temperature heat pumps can heat your home to the same level of warmth, in the same amount of time as a gas boiler, and cost £11,000 on average.
No matter which heat pump you choose to install, the price of installation will be affected. This is because some installations are more complex than others, meaning the time it takes to install could be increased.
Size
The size and/or capacity of most heat pumps is measured in either nominal tons or British Thermal Units (BTU), according to CleanBC Better Homes.
The manufacturer said one tonne of capacity is equivalent to 12,000 BTU per hour or 3.5kW.
A typical residential heat pump generally ranges between one to five tonnes, which equates to 12,000 to 60,000 BTU.
If you install a heat pump at the latter end of this measurement, the higher the cost will likely be. However, it’s better to get the right size heat pump for your home, rather than trying to save money by getting a small model, or making sure you stay warm by purchasing a larger machine.
Go too big and you’ll overpay for a heat pump that runs short cycles which decrease its lifespan.
Go too small, and your model will run constantly as it desperately tries – and fails – to reach your temperature needs, while racking up huge bills. Get the right size machine, and it’ll run in the way it was designed.
You can also use ‘VisitAHeatPump.com’ to see a heat pump in action if you’re concerned about how it works.
Efficiency
Heat pump efficiency is an important cost factor too, as a more efficient machine will naturally cost more.
Air and ground source heat pumps usually have an efficiency rating of 300%, though they can reach 400% or even 500% – which is up to five times higher than gas boilers.
Air-to-air and water source heat pumps also usually exist in this range, as do high temperature heat pumps.
Grants and schemes
While they save you money in the long run, heat pumps are an investment, but there are ways to reduce the cost.
The most-common one is the Boiler Upgrade Scheme (BUS) where you can receive up to £7,500 to install an air source heat pump for your home. Earlier this year, Ofgem announced you no longer need to have cavity wall or loft insulation to qualify for the scheme.
Some manufacturers have also launched schemes themselves, like Aira, who offers a monthly payment plan for heat pumps.
The Aira heat pump costs £4,000-£7,000 to buy and install for a three-to-four bedroom home after the BUS discount, and also comes with a 15-year guarantee, and a 15-year product and service warranty, which includes maintenance.
Want to get a better idea of what it’s like to own a heat pump? Check out our case study with Louise, from South London.
Louise had a 12-kilowatt air source heat pump installed to reduce her reliance on fossil fuels, and received £5,000 off the upfront cost through the Boiler Upgrade Scheme. Now, Louise can enjoy a warm, even temperature throughout the house, without fluctuations.
Take a look at the full interview with Louise to learn more.
Heat pump service costs
If you carry out regular heat pump maintenance checks, your machine should provide you with warmth and hot water for at least 20 years.
You should have the heat pump serviced by a professional every two or three years, to make sure everything is working at peak efficiency.
This service will cost around £200 for an air source heat pump, and £250 for a ground source heat pump, so check with your installer or the manufacturer if you can get a cheaper regular maintenance included in your purchase agreement.
And before the heat pump is installed, ask your installer to write down any maintenance checks you should carry out on a regular basis. This list will include simple tasks like sweeping any leaves, dust or snow from the heat pump’s fans, and cleaning the filter.
You can save money in the long run by keeping your heat pump functioning efficiently – and if you can take care of these jobs yourself, it’s free. As well as carrying out maintenance checks, you can also protect your heat pump system by getting a heat pump cover for the outside unit, which can guard it against extreme weather conditions and sea spray.
Next steps
If heat pumps seem like an affordable choice for you, the next step is to make sure that one can heat your house effectively.
During a cold spell, turn your boiler flow temperature down to 50°C (ask your manufacturer if you’re not sure how to do this), and see how it feels.
If you don’t notice any change, you’re ready for a heat pump. If you feel cold, consider getting additional insulation fitted in your home, bigger radiators, and/or underfloor heating before you get a heat pump.
And when you’re ready, our suppliers can provide you with quotes to compare the best prices – all you have to do is fill in this short form to get started.
Summary
- The ‘best type’ of heat pump will be dependent on your personal needs, which is why getting specific quotes are important.
- A ground source heat pump vertical installation with boreholes will increase the cost by more than double, at around £49,000.
- With a water source heat pump, costs can triple if you need to make other upgrades to your home
- Water source heat pumps are more consistent than air source heat pumps as natural water temperatures stay around 7°C to 12°C throughout the year.
- You can save money in the long run by keeping your heat pump functioning efficiently – and if you can take care of these jobs yourself, it’s free
