The short answer
An air source heat pump installation in the UK typically costs £8,000–£16,000 before any grant, commonly around £12,500 for an average home fitting an 8kW unit. The £7,500 Boiler Upgrade Scheme grant is deducted by your installer, bringing the typical net cost down to roughly £500–£6,500. Heat pumps carry 0% VAT. The final price depends on your home's size, heat demand, and whether radiators or pipework need upgrading.
Price depends mainly on the heat pump's size (kW), your home's heat demand, and whether your radiators and hot-water cylinder need changing. The figures below are typical installed prices, not quotes.
Typical UK costs
- Install (before grant)£8,000–£16,000
- Typical average install~£12,500 (8kW)
- BUS grant deducted−£7,500
- Typical net cost£500–£6,500
- VAT on heat pumps0%
What drives the price
- Heat pump size (kW): matched to your home's heat loss — larger homes need a larger unit.
- Radiators & emitters: heat pumps run cooler than boilers, so some radiators may need upsizing.
- Hot water cylinder: most heat pump systems need a cylinder, adding cost if you don't have one.
- Pipework & controls: upgrades to pipework and controls vary by property.
| Item | Typical figure | Notes |
|---|---|---|
| Install before grant | £8,000–£16,000 | varies by home & spec |
| BUS grant | −£7,500 | England & Wales, eligible homes |
| Typical net cost | £500–£6,500 | after grant deduction |
Indicative UK figures. Sources: Energy Saving Trust, gov.uk Boiler Upgrade Scheme.
How the grant changes the maths
Because the installer deducts the £7,500 grant from your bill directly, the figure you actually pay is the install price minus £7,500. On a £12,500 install that's around £5,000 net; on a smaller or simpler job the net cost can be much lower. The grant is what makes a heat pump's upfront cost comparable to a high-end boiler replacement for many homes.
Want a like-for-like heat pump quote?
We'll match you with an MCS-certified installer who carries out a heat-loss survey and quotes on a clear specification, with the £7,500 grant applied.
Frequently asked questions
How much does an air source heat pump cost?
Typically £8,000–£16,000 installed before any grant, often around £12,500 for an average home. After the £7,500 Boiler Upgrade Scheme grant, the net cost is commonly £500–£6,500.
Is there VAT on heat pumps?
Air source heat pump installations carry 0% VAT in the UK, which your installer should reflect in the quote.
Why is the price range so wide?
Because homes differ. The heat pump size, the number of radiators that need upsizing, and whether you need a hot-water cylinder all move the price. A heat-loss survey gives the accurate figure.
Sources & further reading
Figures on this page are typical UK ranges drawn from published sources and depend on your specific home. They are guidance, not a quotation or guaranteed saving.