An air source heat pump (ASHP) typically costs £10,000 or more installed before any grant, and the £7,500 Boiler Upgrade Scheme grant usually brings that down to somewhere in the £2,500 to £6,500 range, depending on your property and how much work the installation needs. A local specialist's quote, after a proper survey, is the only way to get a figure for your own home.
How much do air source heat pumps cost?
Before the grant, an air source heat pump typically costs £10,000 or more installed, covering the unit itself, the outdoor installation, any new pipework, and commissioning. After the £7,500 government grant is deducted from the quote, most households end up paying somewhere between £2,500 and £6,500, though this varies with the size of the home, how much radiator work is needed, and whether a hot water cylinder has to be added.
| What affects the price | How it moves the cost |
|---|---|
| Size of the home and heat pump needed | Bigger home, bigger pump, higher price |
| Radiators | Upgrading radiators for a lower flow temperature adds cost |
| Hot water cylinder | Adding one where there wasn't one before adds cost |
| Outdoor unit location | Longer pipe runs or awkward access add cost |
| The £7,500 Boiler Upgrade Scheme grant | Deducted from the quote before you pay |
These are starting figures, not a quote: the only reliable price for your own home comes from a specialist's survey.
What's included in an air source heat pump installation price?
A full installation price should cover the heat pump unit, the outdoor compressor unit and its mounting, all new pipework between the unit and your heating system, electrical connection, commissioning, and the paperwork needed for the manufacturer's warranty and the Boiler Upgrade Scheme grant if you're claiming it. If a quote looks unusually low, check what it actually includes, radiator upgrades and a hot water cylinder are sometimes quoted separately.
Why is my electric bill so high with an air source heat pump?
A high electricity bill after a heat pump is fitted usually points to the system running at a higher flow temperature than it needs to, being undersized for the home, or the home's insulation not holding the heat well. These are things a specialist can check and adjust: they're not a sign that heat pumps are inherently expensive to run, just that correct sizing and settings matter more than with a gas boiler.
Questions people ask
Does the government grant reduce the installation price, or is it paid back later?
It reduces the price upfront, not afterwards. Your MCS-accredited installer applies for the £7,500 Boiler Upgrade Scheme grant on your behalf and deducts it from your quote before you pay, so you never pay the full amount and then claim it back later.
How much does it cost to run an air source heat pump?
Running cost depends on your electricity tariff and how efficiently the system is installed and sized, so there's no single figure that applies to every home. A well-sized heat pump typically produces several units of heat for each unit of electricity it uses, which is what makes it cheaper to run than direct electric heating, though your own cost depends on your tariff and usage.
Why do some air source heat pump quotes cost more than others?
Quotes vary with the size and type of heat pump specified, how much pipework and radiator work the home needs, whether a hot water cylinder is included, and what's covered by warranty and aftercare. Two quotes for the same house can differ because one has priced in radiator upgrades and the other hasn't, so it's worth asking what's included before comparing figures.
Is a ground source heat pump more expensive than air source?
Yes, typically. A ground source heat pump costs more to install than air source, mainly because of the groundwork, either a borehole or buried horizontal pipework, needed to collect heat from the ground, so it usually suits larger plots rather than small or terraced properties.
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