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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