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Heat Pump Cost UK — Complete 2026 Guide

Heat pumps are one of the fastest-growing home improvement topics in the UK, driven by government energy efficiency targets and the Boiler Upgrade Scheme offering grants of up to £7,500. This guide covers everything you need to know about costs, savings, and eligibility.

What Is a Heat Pump?

A heat pump extracts heat from the air or ground and transfers it into your home for heating and hot water. Air source heat pumps (ASHP) are most common and affordable. Ground source heat pumps (GSHP) are more efficient but require significant ground works. Both run on electricity.

Air Source Heat Pump Cost UK 2026

An air source heat pump costs £10,000–£18,000 installed before grants. After the Boiler Upgrade Scheme grant of £7,500, the net cost is approximately £2,500–£10,500. The grant is available for properties with an EPC rating of D or above that are replacing a fossil fuel heating system.

Ground Source Heat Pump Cost UK 2026

A ground source heat pump costs £15,000–£35,000 installed before grants. After the £7,500 Boiler Upgrade Scheme grant, net cost is £7,500–£27,500. Ground source systems are more efficient but require either a large garden (horizontal loops) or drilling boreholes (vertical loops).

Boiler Upgrade Scheme 2026

The Boiler Upgrade Scheme provides £7,500 towards an air source or ground source heat pump, and £7,500 for a biomass boiler. A new £2,500 grant for air-to-air heat pumps launched in 2026. Apply through your heat pump installer — they handle the application directly.

Running Costs and Savings

A heat pump costs approximately £800–£1,500 per year to run in a typical UK semi-detached house, compared to £1,200–£2,000 for a gas boiler. Savings increase as electricity becomes cheaper relative to gas under government energy targets. The Coefficient of Performance (COP) of 2.5–4 means for every unit of electricity, 2.5–4 units of heat are produced.

Is My Home Suitable?

Heat pumps work best in: well-insulated homes (EPC C or above), homes with underfloor heating or oversized radiators, homes without gas connections. They work less well in: poorly insulated properties, homes with small radiators, flats or very small homes. Always get a professional heat loss survey before committing.

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Frequently Asked Questions

For well-insulated homes replacing an oil or LPG system, a heat pump is excellent value especially with the £7,500 grant. For gas-heated homes, the economics are tighter but improving. Do your research, get multiple quotes, and ensure your home is well-insulated first.
Air source heat pumps last 15–20 years with annual servicing. Ground source heat pumps last 20–25 years (the ground loops can last 50+ years). Both have longer expected lifespans than a gas boiler.
Yes — the Boiler Upgrade Scheme provides £7,500 towards air source and ground source heat pumps in England and Wales. The grant is applied directly by your MCS-certified installer. Scotland has its own Home Energy Scotland grant scheme.
Yes — modern air source heat pumps work efficiently down to -15°C. Most UK winters rarely fall below -5°C. Efficiency (COP) does reduce in very cold weather but modern units continue to provide effective heating throughout UK winters.
Running costs depend on your home's heat loss and electricity tariff. A typical semi-detached house uses approximately 7,000–10,000 kWh per year for heating and hot water. At 25p per kWh, that is £1,750–£2,500 per year (£145–£210 per month) on a standard tariff. Heat pump tariffs from Octopus and others reduce this significantly.

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