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How much does a heat pump cost and can I get a grant?

Find out about installation costs, running costs, grants and loans.

Installation cost

The cost of installing a heat pump varies from property to property. That’s because each property might require different upgrades as part of the installation. Some homes may need to simply swap one or two radiators for larger radiators, whilst other homes might require more extensive changes to pipework and insulation. Some homes may need minimal or no upgrades.

This is why price estimates can vary significantly. They don’t just include the price of the heat pump unit itself, but also encompass the labour and extra materials required for a range of home upgrades.

The cost also varies depending on the type of heat pump. That’s because some heat pumps, like ground source heat pumps, require more extensive work than others.

The cost of installing a ground source heat pump can vary from about £17,000 for a ground loop installation, to about £49,000 if you're having a borehole drilled.

An air-air-to-air heat pump will likely cost roughly £3,000 to £5,000.

You can get a sense of how much an air source heat pump might cost for your type of home below.

Median inflation-adjusted cost (2022 £) of MCS-certified air source heat pump installations by property archetype and number of habitable rooms (Jan 2019-Jul 2023), Great Britain.

*This is any room that can be used for living or sleeping. This excludes kitchens, utility rooms or bathrooms, unless they also have a clear, distinguishable "living" area. For example an open-plan kitchen with a clear dining or living area would be classed as a habitable room.

Grants and loans

You may be eligible for grants and loans to help you afford an installation. We’ve listed the key options for you below.


Boiler Upgrade Scheme grant

Home Energy Scotland Grant


Home Energy Scotland Loan

Nationwide Green Additional Borrowing Mortgage

Barclays Greener Home Reward

Lower-cost installations

Running cost