Heat Pump Costs at a Glance
In 2026, the typical costs for heat pump installation in the UK are:
- Air source heat pump: £8,000-£14,000 (before grant)
- Ground source heat pump: £15,000-£35,000 (before grant)
- After £7,500 BUS grant: £500-£6,500 for air source
Air Source Heat Pump Costs
An air source heat pump (ASHP) is the most popular choice for UK homes:
- Small home (1-2 bed): £8,000-£10,000
- Medium home (3 bed): £10,000-£12,000
- Large home (4+ bed): £12,000-£14,000
After the Boiler Upgrade Scheme grant of £7,500, you're looking at £500-£6,500 out of pocket.
Ground Source Heat Pump Costs
Ground source heat pumps (GSHP) are more efficient but significantly more expensive due to the ground works required:
- Horizontal ground loop: £15,000-£25,000
- Vertical borehole: £20,000-£35,000
After the £7,500 BUS grant: £7,500-£27,500. Best suited for larger properties with high heating demands.
Running Costs vs Gas Boiler
Heat pump running costs in 2026:
- Air source heat pump: £550-£750/year
- Gas boiler: £850-£1,100/year
- Oil boiler: £1,200-£1,800/year
- Electric heating: £1,500-£2,500/year
A heat pump saves £100-£1,750/year depending on what you're replacing. The biggest savings come from replacing oil or electric heating.
Can I Get a Heat Pump for Free?
Through ECO4, some households can get a heat pump completely free. You need qualifying benefits and an EPC of D or below. Otherwise, the BUS grant covers £7,500 of the cost.
Is It Worth the Investment?
With the BUS grant, a heat pump pays for itself in 5-10 years through lower running costs. They last 20-25 years (vs 10-15 for gas boilers), so you get 10-20 years of pure savings after payback. Plus, gas boilers will be banned in new builds from 2035.