How Much Do Air Source Heat Pumps Cost?
Air source heat pumps are the new standard in home heating technology, offering massive leaps in energy efficiency and drastically reducing household carbon emissions. But how much do air source heat pumps cost?
In the UK, typical installation costs for an air source heat pump are around £5,000 to £15,000. The exact cost will depend on the system you choose, the age and insulation level of your home and the complexity of your installation. There are also various discounts and grants available such as the £7,500 Boiler Upgrade Scheme (BUS) grant, which can reduce the cost significantly.
In this guide, our expert team covers air source heating costs both short- and long-term, what you get for your money and the costs of an air source heat pump vs a gas boiler.
What’s Included in the Air Source Heat Pump Installation Cost?
When discussing air source heat pump costs, it’s worth remembering that the price covers more than just the unit itself. Air source heat pump installation costs include:
- The heat pump system
- Installation labour
- Product delivery
- Any necessary upgrades to your home including pipes, radiators and insulation
Air Source Heat Pump Costs By House Size
One of the primary factors in the cost of an air source heat pump is the size of your property. So, how much does it cost to install a heat pump for your home?
| Property Size and Type | Required System Size | Typical Installation Cost | Out of Pocket Cost After BUS Grant |
| Flat or 1-Bed House | 4 – 6 kW | £8,000 – £10,000 | £500 – £2,500 |
| 2-3 Bed Semi-Detached | 6 – 10 kW | £10,000 – £13,000 | £2,500 – £5,500 |
| 3-4 Bed Detached | 8 – 12 kW | £10,500 – £13,500 | £3,000 – £6,000 |
| 4-5+ Bed Detached | 12 – 16 kW | £13,500 – £18,000 | £6,000 – £10,500 |
Heat Pump Costs You Might Not Know About
The last thing you want when you’re planning major home upgrades is surprise costs. There are a few air source heat pump costs that it’s easy to overlook, such as:
- Additional home upgrades – most installers will assess your home as a whole and recommend any additional upgrades such as larger water pipes and radiators or more insulation, which will then be included in your quote, but not all installers are this thorough, so make sure your quote includes everything, not just the heat pump
- Long-term maintenance – air source heat pumps come with a few long term maintenance costs such as annual servicing which are typically lower than with a gas boiler, but should still be factored in
- Electricity bills – heat pumps are a massive leap in energy efficiency, but because they rely on electricity rather than gas, they will cause your electricity bill to rise, so it’s worth making sure you’re on a specialised heat pump tariff
How Much Does a Heat Pump Cost After the £7,500 BUS Grant?
The Boiler Upgrade Scheme is available to all homeowners who are looking to replace an existing fossil fuel boiler. It entails a £7,500 grant toward the cost of a heat pump installation. Your installer will typically apply for the heat pump grant on your behalf and discount the amount from your final bill.
A typical air source heat pump installation costs around £11,000 upfront. So, with the £7,500 BUS grant, you’d only be paying around £3,500 in total. Some smaller homes could pay less, even as little as a few hundred pounds.
Heat Pump Running Costs
So, how much do air source heat pumps cost to run? There are a few long-term costs to be aware of:
- Electricity usage – because heat pumps rely on electricity, they can cause your electricity bills to rise, but your gas bill will reduce and you can even have your gas meter removed, saving you money on the standing charge
- Maintenance and servicing – air source heat pumps require annual servicing and maintenance, like boilers, but have fewer moving parts so the costs are lower
It’s also worth remembering that the cost of air source heat pumps in winter will be higher than it is in summer, as with gas boilers.
Heat Pump vs Gas Boiler Costs
After factoring in the £7,500 BUS grant, the cost to install a new air source heat pump in a well-insulated modern home is around the same as the cost to install a new boiler.
If your home is older or less well insulated, then additional upgrades might be necessary to get the best out of your heat pump, which can increase the overall installation cost.
However, over time an air source heat pump is likely to be more cost-effective. The UK government is working to phase out fossil fuel home heating, meaning heat pumps will become the new standard. As a result, investing in an air source heat pump now, while the BUS grant is still available, could save you thousands.
Air Source Heating Costs
Overall, air source heat pump costs are largely the same as gas boiler costs. The difference is that air source heat pumps are far more energy efficient, producing fewer carbon emissions and future-proofing your home.
Homeowners that upgrade now are able to take advantage of the £7,500 BUS grant, which is only expected to be available until 2028.
You can learn more about how air source heat pumps work, how much hybrid air source heat pumps cost and whether heat pumps make noise in our blog. Also, make sure to check out our advanced range of Xceed Monobloc air source heat pumps.
FAQs: Heat Pump Costs in the UK
Do heat pumps increase your electricity bill?
Usually, yes. Heat pumps operate using electricity rather than gas, so will typically cause your electricity bill to go up. However, your gas bill will also drop. Additionally, air source heat pumps are up to 300% more efficient than gas boilers, so in a well-insulated home you could save money overall.
Do you need new radiators for a heat pump installation?
If your home is older with smaller radiators and narrower pipes, new radiators might be recommended by your installer to help you get the best results from your heat pump. They are not necessarily required, but you might not see the same benefits without them.
How long does it take for a heat pump to pay for itself?
The payback period for air source heat pumps is influenced by a number of factors, including the initial installation cost, the heating system being replaced and the age and insulation level of your home. However, an air source heat pump can typically pay for itself in around 7 to 15 years.
