- Air source heat pump cost: median £12,826 installed (July–September 2026). The middle half of installs cost £10,717–£15,461 (BUS statistics, 29 Oct 2026).
- After the grant: about £5,326 with the £7,500 Boiler Upgrade Scheme grant, or £3,826 with the £9,000 oil and LPG heat pump grant.
- Ground source: median £26,500 installed in 2025/26, about £19,000 after £7,500. Full guide: ground source heat pump cost.
- Running costs: about £895 a year for a typical home at SCOP 3.0, against about £1,065 on gas and £2,685 on direct electric (Ofgem price cap, Oct–Dec 2026).
- Spread the rest: a Warm Homes Loan for a heat pump covers up to £20,000 (air source) or £35,000 (ground source), and some are interest-free.
- Free for some: lower-income homes in England may get one fully funded. Check what you qualify for.
How much does a heat pump cost in the UK?
Every heat pump funded by the Boiler Upgrade Scheme (BUS) reports its installed price on its MCS certificate. DESNZ and Ofgem publish the results each month. That makes it the best record of what UK households really pay. The latest release, published on 29 October 2026, covers installs paid up to the end of September 2026 (BUS statistics: September 2026).
| Heat pump type | Typical installed price | After £7,500 grant | After £9,000 (oil/LPG) |
|---|---|---|---|
| Air source (air-to-water) | £12,826 median middle half £10,717–£15,461 | £5,326 (£3,217–£7,961) | £3,826 (£1,717–£6,461) |
| Ground source | £26,500 median (2025/26) | £19,000 | £17,500 |
| Air-to-air | No published BUS price yet | £2,500 grant, from when MCS-certified installers are available (see the air-to-air heat pump grant) | |
Air source: median, lower and upper quartile, July–September 2026 (Table Q1.1A). Ground source: median for 2025/26, 365 installs (Table A1.3A). England and Wales. Installer-reported prices include VAT and should include the grant value. Source: DESNZ/Ofgem BUS statistics, 29 October 2026.
The trend is down, not up. After adjusting for inflation, the median air source heat pump in July–September 2026 cost 14% less than in the same quarter of 2022, when the scheme began. The Energy Saving Trust gives a similar figure: a typical air source installation costs “around £12,000” (Energy Saving Trust).
Air source heat pump cost by size
The size of heat pump you need drives the price more than anything else. The median BUS-funded air source heat pump in July–September 2026 was 8kW. Here is the median installed price for each size band in 2025/26, from 30,516 installs:
| Heat pump size | Often suits | Median installed price | After £7,500 | After £9,000 |
|---|---|---|---|---|
| 4–6kW | Flat, small terrace, well-insulated small home | £11,494 | £3,994 | £2,494 |
| 6–8kW | 2–3 bed home | £12,164 | £4,664 | £3,164 |
| 8–10kW | Typical 3 bed semi | £12,688 | £5,188 | £3,688 |
| 10–12kW | Larger 3–4 bed | £13,948 | £6,448 | £4,948 |
| 12–14kW | 4 bed detached | £15,366 | £7,866 | £6,366 |
| 14–16kW | Large or older detached | £15,498 | £7,998 | £6,498 |
| 20kW+ | Very large homes | £24,177 | £16,677 | £15,177 |
Median prices from BUS 2025/26 data (Table A1.3A). “Often suits” is a rough guide only. Your installer’s room-by-room heat loss survey sets the size, and insulating first can drop you a band.
Heat pump installation cost: what’s included in the price
The prices above are full installation prices, not just the box outside. They come from MCS certificates and include the system, labour and VAT. A heat pump installation price usually covers:
- The heat pump unit, sized to your home’s heat loss.
- A hot water cylinder and controls. If you have a combi boiler today, you’ll need space for a cylinder.
- Radiator upgrades. Heat pumps run cooler than boilers, so some rooms may need larger radiators. The Energy Saving Trust lists this as one of the main things that changes the cost.
- Pipework, electrics and commissioning, plus the MCS design and heat loss calculation.
The Energy Saving Trust says cost varies with the size of heat pump, the size of your property, whether it’s a new build and whether you need to upgrade your radiators. Ask each installer for an itemised quote so you can compare like with like. Installers must now take the BUS grant off your upfront price, so the quote should show it (BUS statistics, scheme background). Get a heat pump quote from an MCS-certified installer with the grant already applied.
See which heat pump grants you can get
Boiler Upgrade Scheme, the £9,000 oil and LPG rate, Warm Homes: Local Grant and ECO4, in one 60-second check.
Ground source heat pump cost UK
A ground source heat pump costs roughly twice as much as air source, because most of the money goes into the ground. The median BUS-funded ground source heat pump in 2025/26 cost £26,500 across 365 installs. In July–September 2026 the median was higher, at £34,630, for a larger typical size of 15kW. The Energy Saving Trust says a trench system typically costs around £15,000, and a borehole “considerably more” (Energy Saving Trust).
The grant is the same £7,500, or £9,000 for oil and LPG homes with no mains gas until March 2027. For prices by size, borehole vs trench costs and running costs, read our full ground source heat pump cost guide.
Heat pump grants and loans that cut the price
Most homeowners can get a big chunk of the cost covered. Here are the heat pump grants and finance open today:
| Scheme | Where | What you get | Until |
|---|---|---|---|
| Boiler Upgrade Scheme | England & Wales | £7,500 off an air source or ground source heat pump; £2,500 off air-to-air from when MCS-certified installers are available | Funded to 2029/30 |
| BUS oil and LPG rate | England & Wales | £9,000 if your home is heated by oil or LPG and has no mains gas | March 2027 |
| Warm Homes Loan | UK-wide | Loans up to £20,000 (air source) or £35,000 (ground source), some interest-free | Live since 27 Oct 2026 |
| Warm Homes: Local Grant | England | Can fully fund a heat pump for eligible lower-income homes | March 2028 |
| ECO4 | Great Britain | Can fund a heat pump for households on qualifying benefits, where an installer has funding | 31 Dec 2026 |
| Home Energy Scotland Grant and Loan | Scotland | Grant up to £7,500 plus an optional £7,500 interest-free loan; £1,500 more for rural and island homes | While funding lasts |
| 0% VAT | UK | No VAT on an installed heat pump | 31 March 2027 |
Sources: GOV.UK Boiler Upgrade Scheme; GOV.UK Warm Homes Loan Scheme and scheme rules §4.19; Home Energy Scotland; HMRC VAT Notice 708/6.
How the Boiler Upgrade Scheme works: you must own the property (second homes and rentals count) and be replacing fossil fuel heating such as gas, oil, LPG or electric. Your MCS-certified installer applies to Ofgem and takes the grant off your bill. Hybrid systems that keep a gas boiler can’t get it (GOV.UK).
Warm Homes Loans: the loan caps are set before the BUS grant is deducted, and you can use a loan alongside the BUS grant. There’s no income test, but the lender will check your credit and affordability. Great British Energy doesn’t arrange credit: apply through a lender or an MCS installer. More on our Warm Homes Loan for a heat pump page.
In Scotland the BUS doesn’t apply. Home Energy Scotland offers its own grant and interest-free loan; see our Scotland energy grants guide.
Can you get a heat pump for free? Who can
Some households can get a heat pump fully funded. In England, the Warm Homes: Local Grant can pay for one in homes rated EPC D–G where household income is £36,000 or less, someone gets a qualifying means-tested benefit, or the home is in one of the most deprived postcodes. It runs to March 2028, and your council checks eligibility. ECO4 can also fully fund one for households on qualifying benefits, but only where an installer has funding, and it ends on 31 December 2026 (GOV.UK, 23 January 2026). Everyone else gets £7,500 off, or £9,000 for oil and LPG homes with no mains gas.
Heat pump running costs vs gas
A heat pump’s running cost comes down to one number: its seasonal coefficient of performance (SCOP), the units of heat it gives for each unit of electricity. Here is the maths for a typical home that burns 12,000 kWh of gas a year. At 85% boiler efficiency that’s about 10,200 kWh of heat.
| Heating | The maths | Cost a year |
|---|---|---|
| Gas boiler | 12,000 kWh × 7.97p = £956 + £108 standing charge | £1,065 |
| Heat pump, SCOP 2.5 (poor design) | 10,200 ÷ 2.5 = 4,080 kWh × 26.32p | £1,074 |
| Heat pump, SCOP 3.0 | 10,200 ÷ 3.0 = 3,400 kWh × 26.32p | £895 |
| Heat pump, SCOP 3.5 (good design) | 10,200 ÷ 3.5 = 2,914 kWh × 26.32p | £767 |
| Direct electric heating | 10,200 kWh × 26.32p | £2,685 |
So on a standard tariff, a well-designed heat pump saves about £170–£300 a year against gas if you remove the gas meter. If you keep gas for cooking, you still pay the gas standing charge and the saving shrinks to about £60–£190. Against direct electric heating the saving is about £1,800–£1,900 a year. Heat pump tariffs with cheaper off-peak rates widen the gap. A bad installation (SCOP 2.5) can cost more than gas, which is why design matters. Compare in more detail in our heat pump vs gas boiler guide.
Worked examples: what three homes would pay
A 3 bed semi on mains gas
A typical 1950s semi using 12,000 kWh of gas a year. The heat loss survey says 9kW.
About £170 a year cheaper to run if the gas meter goes. A Warm Homes Loan could spread the £5,188.
An oil-heated bungalow with no mains gas
A rural 2–3 bed bungalow on heating oil, needing about 10,200 kWh of heat a year. The survey says 7kW.
Compare that £895 with what you paid for about 1,200 litres of oil over the last year, plus servicing. The £9,000 oil and LPG heat pump grant runs until 31 March 2027.
A large 4 bed detached house
An older detached home with a high heat loss. The survey says 13kW.
Insulating first could bring the size, and the price, down a band. Insulation grants may cover some of it.
Heat pump vs new gas boiler cost
Comparing with a new gas boiler? DESNZ puts the average cost of a gas boiler at about £3,500 including VAT (BUS summary business case, DESNZ). After the £7,500 grant, a median air source heat pump costs about £1,800 more than that. For an oil or LPG home on the £9,000 rate, the gap is about £300. See our full new boiler cost guide for boiler prices, and are heat pumps worth it? for the long-term sums.
How to cut your heat pump cost
- Claim the right grant. Ask for £9,000, not £7,500, if you heat with oil or LPG and have no mains gas. That rate runs until March 2027.
- Install before 31 March 2027 to keep 0% VAT. The rate is due to rise to 5% from 1 April 2027 (HMRC VAT Notice 708/6).
- Insulate first. A smaller heat pump costs less. Each size band down can save hundreds or more.
- Get three itemised MCS quotes, each with a heat loss survey and an expected SCOP. Check the BUS grant is taken off the price.
- Spread what’s left with a Warm Homes Loan if you need to, and check you don’t qualify for a fully funded one first.
Get your heat pump price with the grant applied
Check your grants in 60 seconds, or go straight to a quote from one MCS-certified installer.