Heat Pumps UK

Heat Pumps: Save Money with Government-Funded Heating

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.

£7,500 government grant MCS-certified installers Lower running costs

Air source vs ground source heat pumps

Air Source Heat Pumps

£8,000 - £14,000
300-400% efficiency
  • Extract heat from outdoor air
  • Easier and cheaper to install
  • 2-3 day installation time
  • Works down to -15°C
  • Requires outdoor unit placement
  • May need backup heating in extreme cold
  • £7,500 BUS grant available

Ground Source Heat Pumps

£15,000 - £35,000
400-500% efficiency
  • Extract heat from the ground
  • Higher efficiency and performance
  • 1-2 week installation time
  • Consistent year-round performance
  • Requires garden space for ground loops
  • Lower running costs than air source
  • £7,500 BUS grant available

The heat pump heating cycle

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.

The 4-stage heat pump cycle

  • Evaporator: Refrigerant absorbs heat from air/ground and evaporates
  • Compressor: Compresses the refrigerant gas, increasing its temperature
  • Condenser: Hot refrigerant releases heat into your home's heating system
  • Expansion valve: Refrigerant expands and cools, ready to repeat the cycle

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.

Heat pumps vs gas boilers

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.

Heat pump vs gas boiler running costs

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

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.

Factors affecting heat pump running costs

  • Home insulation: Better insulation = lower running costs
  • Heat pump efficiency: Newer models are more efficient
  • Electricity vs gas prices: Heat pump savings depend on energy price ratios
  • Heating distribution: Underfloor heating works better with heat pumps than radiators
  • Hot water usage: Heat pumps can heat water but less efficiently than space heating

Electricity price vs efficiency

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.

£7,500 government grant for heat pumps

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.

BUS eligibility criteria

  • Property ownership: You must own your property (including shared ownership)
  • Location: Property must be in England or Wales
  • Existing heating: Must be replacing a fossil fuel heating system
  • EPC requirement: No specific EPC rating required, but property must be suitable for heat pump
  • MCS installer: Installation must be by MCS-certified installer

Heat pump costs after BUS grant

  • Air source heat pump: £500-£6,500 (after £7,500 grant)
  • Ground source heat pump: £7,500-£27,500 (after £7,500 grant)

The grant is applied automatically by your installer — you don't need to apply separately. The £7,500 is deducted from your final invoice.

BUS application process

  • Home survey: MCS installer assesses your property for heat pump suitability
  • Quote: Receive quote showing cost minus £7,500 BUS grant
  • Installation: Installer applies for grant and completes installation
  • Commissioning: System tested and commissioned by installer

BUS budget limits

The Boiler Upgrade Scheme has a limited annual budget. Applications are processed on a first-come, first-served basis. If you're considering a heat pump, it's worth getting quotes sooner rather than later.

What to expect during heat pump installation

Heat pump installation is a significant project that requires careful planning and professional installation. Here's what the process involves:

Pre-installation survey

A detailed survey is essential to determine:

  • Heat loss calculation: How much heating your home needs
  • System sizing: Correct heat pump size for your property
  • Distribution system: Whether existing radiators/heating system is suitable
  • Installation location: Best position for outdoor unit and pipework
  • Electrical requirements: Any electrical upgrades needed

Air source heat pump installation (2-3 days)

  • Day 1: Install outdoor unit, internal components, and pipework
  • Day 2: Connect to heating system, electrical connections
  • Day 3: Commissioning, testing, and handover

Ground source heat pump installation (1-2 weeks)

  • Week 1: Groundwork - drilling boreholes or laying ground loops
  • Week 2: Install heat pump, connect to ground loops, commissioning

Post-installation

  • System handover: Installer explains controls and operation
  • Performance monitoring: System monitored for optimal performance
  • Warranty registration: Product and installation warranties activated
  • BUS certification: Installer submits BUS grant claim

Planning permission for heat pumps

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.

Heat pump questions answered

Common questions about heat pump costs, installation, efficiency and the government grant scheme.

Air source heat pumps extract heat from outdoor air and cost £8,000-£14,000. Ground source heat pumps extract heat from the ground via buried loops and cost £15,000-£35,000 but are more efficient.
Air source heat pumps cost £8,000-£14,000 installed. Ground source heat pumps cost £15,000-£35,000. The £7,500 Boiler Upgrade Scheme grant significantly reduces these costs.
Heat pump running costs depend on your property's efficiency and energy prices. Well-insulated homes typically see 20-40% lower heating costs with heat pumps compared to gas boilers.
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.
Air source heat pump installation takes 2-3 days. Ground source heat pumps take 1-2 weeks due to ground loop installation. A survey is required first to assess suitability.
There's no specific EPC rating required for the £7,500 Boiler Upgrade Scheme grant. However, your property must be suitable for a heat pump installation as assessed by an MCS installer.

Get your £7,500 grant quote

Compare heat pump quotes including the Boiler Upgrade Scheme grant. MCS-certified installers only.