Heat pump installation involves a pre-installation assessment, removing the old system, and then installing both indoor and outdoor units or just an outdoor unit for certain type) with all necessary electrical, refrigerant, and condensate lines. We’ve compiled installer quotes, researched average prices, and detailed government documentation to provide you with the full lowdown. Whether you’re considering an Air Source Heat Pump or a Ground Source Heat Pump, this guide covers average prices, hidden costs, and the available £ 7,500 government grants to help you determine the true long-term value of this sustainable investment.
How Much Does It Cost to Install a Heat Pump?
Heat pumps are rapidly becoming the preferred heating solution for eco-conscious households across the UK. But with all the buzz comes the crucial question: How much does it cost to install a heat pump?
We’ve compiled installer quotes, researched average prices, and detailed government documentation to provide you with the full lowdown. Whether you’re considering an Air Source Heat Pump, a Ground Source Heat Pump, or just trying to understand the investment, this guide covers average prices, hidden costs, and available government grants.
What is the Average Cost to Install a Heat Pump in the UK?
Typically, on an all-inclusive purchase and installation basis, an Air Source Heat Pump in the UK will cost anywhere between £7,000 and £13,000 on average, with a Ground Source Heat Pump typically setting you back anything from £14,000 to £24,000.
| Installation Type | Average Cost (UK, 2025) | What’s Included |
| Air source heat pump | £7,000–£13,000 | Outdoor unit, labour, pipework, commissioning |
| Ground source heat pump | £14,000–£24,000 | Digging, heat collector loops, internal manifold |
| Labour only (standard install) | £1,500–£4,000 | Tools, time, site preparation |
| Home Energy Survey | £150–£300 | Required for most grants & system planning |
| Boiler Upgrade Scheme Grant | Up to £7,500 off | Government-funded heat pump subsidy (see below) |
Note: The total cost depends heavily on system size, insulation level, and whether you need to upgrade existing radiators or pipework.
What are the types of Heat Pumps and Their Cost?
Air Source Heat Pump Costs
ASHPs are the most common type installed due to their lower upfront purchase price and less disruptive installation. They absorb heat from the outside air and compress it to heat the water that circulates through your radiators or underfloor heating.
| Property Type | Install Price Estimate | |
| Small flat | £6,500–£9,000 | |
| 3-bed semi | £9,000–£11,000 | |
| 4-bed detached | £11,000–£13,000+ |
Ground Source Heat Pump Costs
GSHPs use buried pipes for heat extraction from the ground, offering high efficiency (often 400% or more) due to the stable underground temperature. However, they are significantly more expensive and disruptive to install.
| Property Type | Install Price Estimate |
| 3-bed with trenches | £14,000–£18,000 |
| 4-bed with boreholes | £18,000–£24,000+ |
What Government Grants Are Available?
The Boiler Upgrade Scheme is the primary government funding mechanism to offset the upfront cost of switching from fossil fuel systems (gas, oil, LPG) to a heat pump in England and Wales.
- Grant Amount: Up to £7,500 off the cost and installation of an Air Source or Ground Source Heat Pump.
- Eligibility: You must be a homeowner in England or Wales, replacing an existing fossil fuel heating system, and have a valid Energy Performance Certificate with no major insulation recommendations outstanding.
- Application: Your MCS-certified installer handles the grant application process, deducting the grant amount directly from your quote.
Hidden and Extra Costs to Budget For
The sticker price for the unit and standard installation is only part of the story. Many homes require preparatory or complementary work for the heat pump to operate efficiently:
| Add-On | Estimated Cost |
| Pipework upgrades | £500–£1,500 |
| Radiator replacements | £100–£300 per rad |
| Smart controls (e.g. Nest) | £150–£250 |
| Buffer tank / thermal store | £500–£1,500 |
| Survey and energy assessment | £150–£300 |
| Old boiler removal | £250–£500 |
Is a Heat Pump Cheaper Than a Boiler?
While the initial outlay for a heat pump is higher, they are competitive and often cheaper to run in the long term, particularly when replacing an old oil or electric system.
| Comparison | Heat Pump | Gas Boiler |
| Typical Annual Running Cost | £500–£1,000 | £800–£1,200 |
| Average Lifespan | 15–20 years | 10–15 years |
| Annual Servicing Cost | £150–£200 | £100–£150 |
Heat pumps can be an even more affordable proposition if you have solar panels (which generate the electricity they consume) or utilize flexible energy tariffs to run the pump when electricity is cheaper.
Is It Worth Installing a Heat Pump in the UK?
Yes, it is generally worth the investment, especially with the government’s £7,500 grant.
Benefits:
- Lower carbon emissions.
- Lower running costs in most well-insulated homes.
- Future-proofing against fossil fuel restrictions.
- Increased Energy Performance Certificate rating and potential resale value.
Caveat: The investment is only truly worthwhile if your home is well insulated and the system is correctly sized by a qualified installer.
In-depth Heating Advice from Bathroom Mountain
Still unsure if a heat pump is right for your home? The Bathroom Mountain Advice Centre is packed with helpful tips and in-depth insight in articles such as the ultimate guide to air source heat pumps. Explore our resources to find out all you need to know about sustainable home heating solutions.
Conclusion
In conclusion, the cost to install a heat pump in the UK is high, ranging from £ 7,000 to over £24,000 before grants. However, the generous Boiler Upgrade Scheme £7,500 off significantly reduces this barrier. While the initial outlay is greater than a gas boiler, heat pumps offer lower running costs, a longer lifespan, and future-proof your home against fossil fuel bans. The investment is only truly worthwhile, however, if your home is well insulated to maximize efficiency and ensure you reap the full financial and environmental rewards.
