What a heat pump actually costs, what grants are available, what your running costs will be, and how long before you break even — with honest numbers.
Government grant for eligible UK homeowners installing an air source heat pump. Available now through 2028.
Heat pump installation costs vary significantly based on home size, existing heating system, and how much additional work is needed (radiator upgrades, hot water cylinder, pipework). Here's a realistic picture:
| Home type | Gross cost | After £7,500 grant | Typical payback |
|---|---|---|---|
| 1–2 bed flat / terrace | £8,000–10,000 | £500–2,500 | 3–6 years |
| 3 bed semi-detached | £10,000–13,000 | £2,500–5,500 | 6–10 years |
| 4 bed detached | £12,000–16,000 | £4,500–8,500 | 8–12 years |
| 5+ bed large detached | £15,000–22,000 | £7,500–14,500 | 10–15 years |
Costs based on 2025 MCS installer survey data. Payback assumes current Ofgem energy prices and a 20-year system lifespan. Your figures will vary.
Be cautious of very low quotes. A heat pump installed without a proper heat loss calculation may be oversized, leading to short-cycling, wasted energy, and poor performance. The cheapest quote is rarely the best value. MCS certification is required for grant eligibility and is your assurance of minimum standards.
The heat pump unit itself, a new hot water cylinder (usually required), and associated controls. Premium brands cost more but may offer better efficiency and longer warranties.
Heat pumps run at lower flow temperatures than boilers. Some radiators may need upsizing. Well-insulated modern homes often need fewer changes.
The installation itself typically takes 2–4 days. Includes outdoor unit mounting, pipework, indoor unit installation, and system commissioning.
A heat pump may require a dedicated circuit and potentially a consumer unit upgrade. A Part P-registered electrician must carry out this work.
Heat pumps use electricity rather than gas. Despite electricity costing more per unit, the efficiency advantage means most homes save money on heating bills. Here's a typical comparison:
Based on Ofgem Q1 2025 unit rates. Actual savings depend heavily on insulation quality, system design, and occupancy patterns.
The electricity-to-gas price ratio is improving. Historically, electricity has cost about 3–4× more per unit than gas, which neutralised the efficiency advantage. The ratio is narrowing, and the introduction of smart EV/heat pump tariffs (like Octopus Cosy or Intelligent) can cut electricity costs significantly for heat pump owners.
You need a valid Energy Performance Certificate (EPC) with no outstanding energy efficiency recommendations for loft or cavity wall insulation. Check free at find-energy-certificate.service.gov.uk
Only MCS-certified installers can apply for the BUS grant on your behalf. The grant is deducted from your invoice — you pay the net cost upfront to the installer.
Your installer handles the grant application. You don't need to contact Ofgem directly. The installer claims the £7,500 from Ofgem after installation is complete.
The installer issues an MCS certificate on completion, which is your record of a compliant installation and required for grant processing.
Timing matters if your boiler breaks down. The grant application must be submitted before installation begins. If you're in a boiler emergency, make sure your installer is MCS-certified and submits the application before work starts — even if that means a day's delay while they do so.
Our calculator uses your home's details to give you a personalised estimate — including the BUS grant deduction.
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