Last updated: 23 March 2026
Complete guide to air source and ground source heat pumps. Get £7,500 government grant through the Boiler Upgrade Scheme and quotes from MCS-certified installers. Great British Energy grants guide has all the details. Great British Energy has the full breakdown.
A heat pump costs £8,000–£15,000 installed in the UK, but the Boiler Upgrade Scheme provides a £7,500 government grant — bringing your out-of-pocket cost to as little as £2,500 for an air source heat pump. Heat pumps cut heating bills by 30–50% compared to gas boilers, and the grant has been extended to 2028. An MCS-certified installer will survey your home free of charge.
After £7,500 BUS grant: £500 to £6,500
After £7,500 BUS grant: £7,500 to £27,500
Heat pumps work like refrigerators in reverse, extracting heat from the air or ground outside and transferring it inside your home. Even when it's cold outside, there's still heat energy available that can be extracted.
This process is highly efficient because it moves heat rather than generating it. For every unit of electricity consumed, a heat pump can produce 3-5 units of heat energy.
Gas boilers burn fuel to create heat (80-90% efficiency). Heat pumps move existing heat from outside (300-500% efficiency). This makes heat pumps far more efficient, though performance depends on your home's insulation. If you're replacing an old boiler, check if you qualify for government boiler grants.
| Property Type | Gas Boiler Annual Cost | Air Source Heat Pump | Ground Source Heat Pump | Annual Savings |
|---|---|---|---|---|
| Well-insulated home (EPC A-C) | £800 | £600 | £500 | £200-£300/year |
| Average home (EPC D) | £1,200 | £1,100 | £900 | £100-£300/year |
| Poorly insulated (EPC E-G) | £1,800 | £1,900 | £1,600 | May cost more initially |
Tip: swipe horizontally to view all columns.
Running costs depend heavily on your home's energy efficiency. Heat pumps work best in well-insulated properties. If your home has poor insulation, consider improving it first or as part of your heat pump installation. Check for free insulation grants.
Electricity costs about 4x more than gas per unit, but heat pumps are 3-5x more efficient than gas boilers. This means running costs are often similar or lower, especially in well-insulated homes.
The Boiler Upgrade Scheme (BUS) provides £7,500 towards the cost of installing an air source or ground source heat pump, making them much more affordable for UK homeowners.
The grant is applied automatically by your installer — you don't need to apply separately. The £7,500 is deducted from your final invoice.
The Boiler Upgrade Scheme has a limited annual budget. Applications are processed on a first-come, first-served basis. Find out who qualifies for the Boiler Upgrade Scheme before you apply. If you're considering a heat pump, it's worth getting quotes sooner rather than later.
Heat pump installation is a significant project that requires careful planning and professional installation. Here's what the process involves:
A detailed survey is essential to determine:
Air source heat pumps are usually permitted development. Ground source heat pumps may need planning permission if extensive groundwork is required. Your installer will advise on requirements for your property.
Next steps: Get a heat pump quote → Check BUS eligibility
Common questions about heat pump costs, installation, efficiency and the government grant scheme.
A heat pump is a renewable heating system that extracts warmth from outdoor air (air source) or underground (ground source) and transfers it into your home. Heat pumps are 3–4 times more efficient than gas boilers, producing 3–4 kWh of heat for every 1 kWh of electricity used.
Compare heat pump quotes including the Boiler Upgrade Scheme grant. MCS-certified installers only.