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Created on September 29, 2023

Updated on February 19, 2024

Reading Time: 7 minutes

Heat Pump Costs UK 2024

Heat pumps offer an efficient and renewable solution to replace traditional gas and oil boilers in most homes. Proper preparation is essential, and the government is incentivizing homeowners with subsidies to encourage the adoption of this eco-friendly technology.

Given the impending ban on gas boilers, it’s prudent to explore the best alternative available, especially while the government provides discounts. This guide provides comprehensive information on the costs associated with various heat pump options, enabling you to determine the most suitable type for your home.

If you’re ready to embrace heat pumps, complete a brief form with your details. We’ll connect you with local experts who can provide complimentary heat pump quotes, ensuring you secure the optimal deal for your property.

Cool Energy Air Source Heat Pumps

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How much does a heat pump cost?

Property SizeTwo BedroomThree BedroomFour BedroomFive Bedroom
Air source heat pump size5kW10kW13kW16kW
Air source heat pump cost£7,000£10,000£13,000£15,000

These costs are a general rough idea and don’t reflect exactly what you’ll pay. Heat pump installations are always priced on a case-by-case basis.

On average, an air source heat pump for a three-bedroom house is priced at £10,000.

Through the Boiler Upgrade Scheme, you can potentially reduce the cost of an air source heat pump or ground source heat pump by £7,500.

Considering that, over 20 years, an air source heat pump typically saves £4,340 more than a gas boiler, the financial advantage is now firmly in favor of air source heat pumps.

For personalized, cost-free quotes on a heat pump installation tailored to your home, simply complete this brief form with your details. Our installers will then reach out to you promptly.

Cool Energy Air Source Heat Pumps

Heat pump installation cost

The purchase and installation of an average air source heat pump typically amount to £10,000.

In contrast, ground source heat pumps are notably pricier than their air source counterparts due to a lengthier and more intricate installation process that requires specialized tools.

Regardless of whether you opt for an air or ground source heat pump, enhancing your system’s performance may involve the installation of underfloor heating, improved insulation, and/or larger radiators.

While it’s unlikely you’ll need to replace all your radiators, it’s advisable for most homes to consider replacing about one-third of them with units that are 2.5 times larger than the standard size. This adjustment is necessary because heat pumps release heat at a lower level and over an extended period compared to gas boilers.

The gradual release characteristic contributes significantly to their energy efficiency, but it necessitates either substantial surface areas in your heating equipment or insulation capable of retaining the warmth generated by your heat pump.

Three factors that can affect the cost of a heat pump

The cost of a heat pump is impacted significantly by factors such as type, size, and efficiency. Moreover, specific brands may have varying pricing for their products. To ensure a comprehensive price comparison, obtain quotes from at least three different installers.

1. Type

The primary determinant of a heat pump’s cost is its type.

Air-to-air heat pumps are generally five times more affordable than air source heat pumps or water source heat pumps, which, in turn, are slightly less expensive than high-temperature heat pumps. Ground source heat pumps, on the other hand, stand out as the most costly option.

2. Size

The cost of a heat pump increases with its size, but it’s essential to prioritize obtaining the appropriate size for your home. Attempting to save money with a smaller model or ensuring warmth with a larger machine can lead to drawbacks.

Opting for a heat pump that is too large may result in overpayment, as it runs short cycles, diminishing its lifespan. Conversely, selecting a model that is too small may cause it to run continuously, attempting but failing to meet your temperature requirements and resulting in substantial bills.

Choosing the right-sized machine ensures optimal performance in line with its design specifications.

3. Efficiency

The efficiency of a heat pump is a significant cost consideration; a more efficient unit typically comes with a higher price tag.

Air and ground source heat pumps typically boast an efficiency rating of 300%, with the potential to reach 400% or even 500%. This is notably higher—up to five times—compared to gas boilers.

Air-to-air and water source heat pumps also commonly fall within this efficiency range. In contrast, high-temperature heat pumps exhibit lower efficiency, usually around 250%.

heat pump outside building cost 2023

Heat pump running costs

For a three-bedroom household, the annual operational expenses of an air source heat pump, on average, are approximately £1,048. However, these costs can vary considerably based on your location within the UK.

Heating MethodEfficiency(%)Annual energy use (kWh)Cost (p/kWh)Annual bill
Gas Boiler9511,5006.89£792
Heat Pump3003,83327.35£1,048
Oil Boiler9211,87511.14£1,337
Electric Boiler10010,92527.35£1,641

While the ground temperature remains consistent throughout the year, the efficiency of your air source heat pump is subject to fluctuations in air temperature.

Currently, the annual cost of operating a gas boiler in an average three-bedroom home is around £800, slightly less than a typical heat pump. However, this balance is expected to shift. With the UK’s shift away from fossil fuels, gas prices are likely to rise, while the cost of electricity is anticipated to decrease when the government eliminates green levies that artificially inflate its price.

Residents in the southern regions may already experience lower running costs for a heat pump compared to a gas boiler, owing to the generally warmer climate. Additionally, your operational expenses might decrease if your heat pump has an efficiency rating higher than 300% or if your insulation surpasses the average standard.

The 20-year cost of a gas boiler vs an air source heat pump

20 year cost of heat pumps

Are there any grants for heat pumps?

Take advantage of various government grants available in the UK for heat pumps.

Under the Boiler Upgrade Scheme, homeowners in England and Wales can benefit from a £7,500 reduction on the cost of air, ground, or water source heat pumps.

Low-income households and individuals receiving specific benefits in England, Scotland, and Wales may qualify for a heat pump through the ECO4 scheme.

In Scotland, eligible households can explore options through Warmer Homes Scotland and the Home Energy Scotland Loan, while some residents in Wales may access the government’s Nest scheme. Additionally, check our guide to air source heat pumps in Scotland for more details.

To discover further opportunities, inquire with your local authority about potential funding from the Home Upgrade Grant. If your home isn’t connected to the gas grid and your local authority has received funding, you might be eligible for a heat pump grant.

For comprehensive details, refer to our complete guide on heat pump grants.

Heat pump service costs

Ensuring regular heat pump maintenance checks are conducted can extend the lifespan of your machine, providing warmth and hot water for a minimum of 20 years.

It’s advisable to have a professional service your heat pump every one or two years, depending on the warranty terms and conditions. This service typically incurs a cost of around £150. To explore cost-saving options, inquire with your installer or the manufacturer about the possibility of including regular maintenance in your initial purchase.

Prior to installation, request your installer to document any routine maintenance checks you should perform. This checklist may involve simple tasks such as clearing leaves, dust, or snow from the heat pump’s fans and cleaning the filter.

By ensuring your heat pump functions efficiently, you can save money in the long run. If you’re able to manage these tasks independently, it comes at no additional cost.

In addition to regular maintenance checks, consider protecting your heat pump system by acquiring a cover for the outside unit. This cover serves as a shield against extreme weather conditions and sea spray, contributing to the overall longevity of your heat pump.

Next steps

If you find that heat pumps align with your budget, when you’re prepared, our suppliers can furnish you with quotes, allowing you to compare and secure the best prices. Simply complete this brief form to initiate the process.



Fitting an air source heat pump usually costs between £7,000 and £15,000

It’s usually worth replacing a gas boiler with an air source heat pump in the UK.

The average three-bedroom household will save £4,340 over an air source heat pump’s 20-year lifespan, compared to a gas boiler, according to our calculations.

However, this depends on how insulated your home is, what the weather’s like where you live, and the quality of the heat pump you get.

Air source heat pumps with an efficiency rating of 350% or higher can save the average household £7,336 over 20 years compared to a gas boiler.

You also don’t need to replace a heat pump after 10 years, like a gas boiler. Air source heat pumps typically last for 20 years.

And with electricity prices set to fall, gas prices on the rise, and heat pump technology improving all the time, switching over will soon become even more profitable.

Get FREE Heat Pump Quotes
Find out how much a heat pump would cost you

Step 1 of 7

Complete A Short Form – Receive Free Quotes – Compare & Save

Get FREE Heat Pump Quotes
Find out how much a heat pump would cost you

Step 1 of 7

Complete A Short Form – Receive Free Quotes – Compare & Save

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