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Air source heat pumps: How much do they cost in 2024?

Tamara Birch, senior writer, The Eco Experts
Written By
Maximilian Schwerdtfeger
Reviewed By
Published on 29 August 2024
  • Air source heat pumps cost around £10,000 on average
  • A three-bedroom house will typically need a 10kW system
  • Running costs depend on how your heat pump is designed and how it’s operated
  • Annual savings for the typical three-bedroom home can vary from £8-£1,100

Air source heat pumps take heat from the air and boost it to a higher temperature, allowing you to use energy in your home more efficiently.

There are two main types: air-to-water and air-to-air. 

An air-to-water heat pump takes heat from the outside air and feeds it into your wet central heating system, similar to existing gas central heating. 

However, an air-to-air heat pump takes heat from the outside air and feeds it into your home through fans. This can be used for heating, but can’t it produce hot water, according to the National Grid. 

Air source heat pumps cost around £10,000 on average, but prices will vary depending on the system’s size. 

For reference, a three-bedroom house will typically need a 10kW system, which will cost £10,000, on average. A four bedroom will need a 13kW system that will cost around £13,000 on average and a five bedroom house’s 15kW system will cost around £15,000, on average. 

The good news is that there are grants available, like the Boiler Upgrade Scheme. The scheme is available to homeowners in England and Wales and offers a £7,500 discount on heat pumps. 

Before you apply, use our calculator below to determine the costs you’re likely to incur when installing a heat pump. Similarly, enter the heat pump you’d like to get and how big your home is, and it’ll do the rest. 

We do recommend getting quotes directly from heat pump installers, too, so fill in our form and our trusted suppliers will be in touch.

The cost of an air source heat pump will vary between £7,000 and £15,000. This will be dependent on a variety of factors, including: 

  • The size of your heat pump
  • The size of your property 
  • Property type, i.e. newbuild or an older property
  • Whether you need to change the way heat is distributed around your home
  • Installation costs

Check out the table below for an average cost, and fill in our form for more accurate quotes from our trusted installers. 

Property sizeAir source heat pump typeSystem sizePrice
1 bedroomAir-to-air heat pump3kW£2,600-£6,400
1 bedroomAir-to-water heat pump8kW£8,500-£11,200
2-3 bedroomsAir-to-air heat pump4-5kW£6,300-£9,000
2-3 bedroomsAir-to-water heat pump13kW£10,000-£13,000
4-5 bedroomsAir-to-air heat pump10kW£8,500 minimum
4-5 bedroomsAir-to-water heat pump16kW£12,200 minimum

While this is an average cost of a heat pump, it is possible to find models and installation packages for less, according to heat-pumps.o.rg.uk

Running costs depend on how your heat pump is designed and how it’s operated. Savings on your energy bill will also depend on the system you’re replacing, according to The Energy Saving Trust

With that in mind, they report an air source heat pump running costs can vary depending on: 

  • Whether your radiators are appropriately sized
  • Your electricity tariff
  • How the heat pump is controlled

When installing an air source heat pump, it might be worth considering switching to a tariff that’s specific to heat pumps, like Octopus Energy’s Cost Octopus Heat Pump Tariff

It is a three-rate tariff with a dip every day, giving you eight hours of cheaper electricity to warm your home. These periods are between 4am-7am, 1pm-4pm and 10pm-12am every day.  

Prices are determined by region. For a home in the South-East, the day rate is 23.43p per kWh, the ‘cosy rate’ is 11.48p per kWh and the peak rate (4pm-7pm) is 33.97p per kWh. A standing charge applies at 54.83p per day. 

An average air source heat pump will be able to create enough heat for your home around 4,000kWh of electricity per year. Overall, some households can experience savings of up to 50% on their heating alone.

air source heat pumps

Installation costs can increase the overall cost of an air source heat pump, as it will depend on the company you use. 

It’s also worth noting that air source heat pumps are typically the more expensive option than other heat pumps, but the environmental benefit almost outweighs this. 

Installation costs – including the heat pump – can be anywhere between £2,000-£20,000, according to CheckaTrade

The company says there are factors to consider, besides the size of your home and the heat pump you want to install, too. 

These are:

  • Insulation: If your home isn’t insulated properly, then your air source heat pump will need to work harder to maintain a consistent temperature
  • The pump brand, performance and efficiency: Some brands will cost more than others and if you want a high performance and higher efficiency, the cost will naturally increase.
  • Radiator upgrades: Radiators, on average, will need to be two and a half times larger than normal to provide the same heat output. 

It’s widely known that switching to low-carbon technology, like an air source heat pump, will have a positive impact on your energy bills. 

But the figure will depend on what you’re upgrading from. 

As CheckaTrade reported, your annual savings for the typical three-bedroom home can vary from £8-£1,100. More specifically: 

  • £8-£385 if upgrading from a gas boiler
  • £830-£1,100 if upgrading from an electric heater
  • £15-£455 if upgrading from an oil boiler
  • £50-£460 if upgrading from an LPG boiler
  • £1,100 if upgrading from coal

An air source heat pump has several benefits and can be worth the investment for the following reasons: 

  • Reduced energy bills: Depending on how you use your heat pump, you can lower your energy bills each year and reduce your reliance on the national grid.
  • Lower your energy usage: Heat pumps rely on renewable energy, rather than traditional boilers, so it is used a lot more sparingly and you get more for your money.
  • Cut your carbon emissions: Heat pumps are a low-carbon heating piece of technology, ultimately lowering your emissions than if you installed a gas boiler.

There are, however, some situations where it won’t be beneficial to install an air source heat pump. 

Air source heat pumps become slightly less efficient when the temperature dips below zero degrees, going from 300% efficiency to 200% efficiency. This is because they need to work harder to draw heat from the air. 

It’s also unlikely going to be worth the investment if you plan to move in the next five years, as the return on investment would be significantly reduced.   

Air source heat pump outside a modern property

What are alternative heat pumps?

If an air source heat pump is not the right option for you, there are two other heat pump types to research: 

  • Ground source heat pump: A ground source heat pump is a heating system that uses the ambient warmth of the soil to keep your home warm. It can be installed either horizontally, meaning the pipes are laid out over a large surface about a metre underground,  or vertically which involves drilling at least one borehole, up to 120m down.
  • Water source heat pump: A water source heat pump uses water to generate warmth, whereby the system extracts heat from a water source. These sources include lakes, rivers and streams, mine water, sea water and aquifers (an underground layer of water-bearing permeable rock). 
  • Air source heat pumps take heat from the air and boosts it to a higher temperature and there are two main types: air-to-water and air-to-air. 
  • Installation costs can increase the overall cost of an air source heat pump, as it will depend on the company you use. 
  • Air source heat pumps are typically the more expensive option than other heat pumps, but the environmental benefit almost outweighs this. 
  • Installation costs – including the heat pump – can be anywhere between £2,000-£20,000
  • Air source heat pumps become slightly less efficient when the temperature dips below zero degrees, going from 300% efficiency to 200% efficiency. This is because they need to work harder to draw heat from the air. 
  • It’s also unlikely going to be worth the investment if you plan to move in the next five years, as the return on investment would be significantly reduced. 

Written by

Tamara Birch, senior writer, The Eco Experts

Tamara is a London-based journalist and has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products, to help them become more sustainable.

She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment - all while reducing monthly costs.

In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.

Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.

You can get in touch with Tamara via email at tamara.birch@mvfglobal.com.

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Reviewed By

Maximilian Schwerdtfeger

Max joined The Eco Experts as content manager in February 2024. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.

In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.

He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.

Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.

As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.

His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.

Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.

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