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

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.
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You can find out which type of heat pump is right for you on our Which heat pump is right for me? page.

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.

‍Grants

Boiler Upgrade Scheme grant

Almost all homeowners in England and Wales are eligible for a £7,500 grant from the UK Government, as long as you don’t have any cavity wall or loft insulation recommendations outstanding on your Energy Performance Certificate, and haven’t had a grant to install a heat pump or biomass boiler previously. You can find out more on the government’s website.

Home Energy Scotland Grant

If you live in Scotland, you may be eligible for a £7,500 grant through Home Energy Scotland, funded by the Scottish Government. If you live in a rural area you may be eligible for a £9,000 grant.

Loans

Home Energy Scotland Loan

If you live in Scotland, you may be eligible for an interest-free loan of up to £7,500 through Home Energy Scotland, funded by the Scottish Government. Loans are also available for additional measures to improve your home’s energy efficiency and renewable energy capabilities.

Nationwide Green Additional Borrowing Mortgage

Nationwide offers a loan for green home upgrades with 0% interest for the first two or five years. Find out more on their website.

Barclays Greener Home Reward

If you already have a mortgage with Barclays, you may be eligible for its Greener Home Reward. You can claim money back on green and energy-efficient upgrades to your home with this scheme, including £2,000 for a heat pump and £500 for loft, roof and cavity wall insulation.

Lower-cost installations

Some energy providers offer lower-cost heat pump installations. These companies tend to have stricter eligibility criteria than independent installers, so it is worth checking with them that you qualify. You can find examples of energy companies providing heat pump installations on our How to find the right installer? page.

Running cost

You are likely to make savings on your heating bill if you currently have an oil, LPG or electric boiler, electric radiators or storage heaters. This is because heat pumps use three to four times less energy than other heating systems.

If you are currently using a gas boiler, your heating bills will likely remain similar after installing a heat pump. Despite heat pumps using significantly less energy to run than a gas boiler, the government currently subsidises gas to make it cheaper than oil, LPG and electricity.

However, it’s likely that the price difference between electricity and gas will reduce over time. This could occur if the government makes changes to energy price policies in order to encourage the use of lower-carbon energy sources. This means that running a heat pump is likely to become cheaper than running a gas boiler in the future.

If you’d like to save on your running costs you can find heat pump friendly tariffs. Find out more from Which?.

If you’d like to estimate your running costs, you can use the Heat Pump Running Costs and Emissions Estimator developed by the Green Heat Coop.

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