Heat Pump Cost UK: Grants and Running Costs

Air source heat pumps are central to the UK push to cut home heating emissions. They cost more to install than a gas boiler, but a government grant and low-carbon efficiency can change the maths. Here is what to expect.

Upfront cost and the grant

Installed prices vary widely by property, but a typical air source heat pump can cost in the region of £10,000 to £14,000 before any grant. Under the Boiler Upgrade Scheme, eligible households in England and Wales can receive £7,500 off the cost of an air source heat pump, applied by the installer, so you do not claim it yourself. Always check eligibility and current grant levels on GOV.UK.

How heat pumps save energy

A heat pump moves heat rather than creating it. A seasonal coefficient of performance (SCOP) of about 3 means every 1 kWh of electricity produces roughly 3 kWh of heat. A gas boiler is typically 85% to 90% efficient.

Running cost example

These prices are illustrative; check current tariffs. Suppose a home needs 12,000 kWh of heat a year.

• Heat pump at SCOP 3: 12,000 / 3 = 4,000 kWh of electricity. At 27p per kWh = £1,080
• Gas boiler at 90%: 13,333 kWh of gas. At 6p per kWh = £800

Because electricity costs more per kWh than gas, running costs can be similar or slightly higher unless you use a heat pump tariff or solar. Estimate your numbers with the Heat Pump Cost Calculator UK.

What affects the price?

Property size, insulation level, whether radiators need upsizing, the need for a new hot water cylinder and your region all change the quote. Better insulation lowers the heat pump size you need and the running cost.

Before you commit

Get at least three quotes from MCS-certified installers, ask for a heat loss calculation, and improve insulation first where possible. Check planning rules and noise requirements for outdoor units.

Frequently Asked Questions

How much is the Boiler Upgrade Scheme grant?

£7,500 towards an air source heat pump for eligible homes in England and Wales, subject to scheme rules.

Are heat pumps cheaper to run than gas boilers?

Not always. Efficiency helps, but electricity costs more per kWh, so savings depend on tariffs, insulation and system design.

Do I need to insulate my home first?

It is strongly recommended. Better insulation reduces the size and running cost of the system.

Who installs a heat pump?

Use an MCS-certified installer, which is required for the grant.

This article is for general information only and is not financial, legal or medical advice. Rules and figures change, so check the official sources below and speak to a qualified adviser for decisions that matter.