The short answer
A typical air source heat pump (ASHP) fully supplied and installed in the UK costs roughly £8,000 to £14,000 before any grant, depending on the size of the home, the heat pump output needed, and how much work the heating system requires. The price covers the heat pump unit itself, a hot water cylinder, pipework, controls, electrical work and commissioning — not just the box on the wall. The Boiler Upgrade Scheme (BUS) in England and Wales provides a £7,500 grant towards an MCS-certified ASHP installation, which the installer typically deducts from your quote, so many households pay roughly £3,000 to £7,000 net. Heat pumps also benefit from 0% VAT on installation. Larger homes, properties needing radiator upgrades, or systems with extra controls sit at the upper end.
Heat pump prices vary widely because no two homes have identical heating systems. Understanding what the installed figure includes — and what the grant removes — is the key to reading a quote sensibly.
Air source heat pump cost
- Typical installed cost (before grant)£8,000–£14,000
- Boiler Upgrade Scheme grant£7,500 (England & Wales)
- Typical net cost after grant£3,000–£7,000
- VAT on installation0% (until March 2027)
- Certification needed for grantMCS-certified installer and product
What the installed price actually covers
A heat pump quote is a whole-system price, not just the cost of the outdoor unit. A typical installation includes:
- The heat pump unit: the outdoor unit that extracts heat from the air. Output is sized to the home's heat loss, commonly between 5 kW and 12 kW for a domestic property.
- A hot water cylinder: heat pumps run at lower flow temperatures than gas boilers, so a hot water cylinder is almost always needed to store hot water. Many homes converting from a combi boiler will not already have one, so this is a real added cost and a space consideration.
- Pipework and connections: linking the outdoor unit to the cylinder and heating circuit, plus any new pipe runs.
- Controls: a heat pump controller and often weather compensation, which adjusts output to outdoor conditions.
- Electrical work: a dedicated supply for the heat pump, sometimes requiring consumer unit work.
- Radiator or emitter changes: some existing radiators may need upsizing to deliver the same heat at a lower flow temperature; this is quoted where a heat loss survey shows it is needed.
- Commissioning and certification: setting the system up correctly and issuing the MCS certificate required for the grant.
| Property type | Typical heat pump size | Indicative installed cost (before grant) |
|---|---|---|
| Small flat / 2-bed terrace (well insulated) | 5–6 kW | £8,000–£10,000 |
| Average 3-bed semi | 6–8 kW | £9,000–£13,000 |
| Larger 4-bed detached | 8–12 kW | £11,000–£16,000+ |
| After £7,500 BUS grant (typical 3-bed) | — | ~£3,000–£6,000 net |
Indicative UK figures for guidance. Sources: Energy Saving Trust and Nesta cost guidance. Actual cost depends on heat loss survey, radiator changes and site conditions.
What pushes the cost up or down
Several factors move a quote within (or beyond) the typical range:
- Home size and insulation: a larger or poorly insulated home loses more heat, so it needs a higher-output heat pump and possibly more radiator upgrades.
- Existing radiators: if your radiators are already generously sized, fewer need changing. If they are small or the property runs hot flow temperatures, more emitter work is required.
- Hot water cylinder: homes coming off a combi boiler need a new cylinder and the space to put it, adding cost.
- Electrical supply: some installations need consumer unit or supply work.
- Access and siting: awkward outdoor unit positions, long pipe runs or restricted access add labour.
How to compare quotes fairly
Because every installation differs, two quotes for the same home can look very different. A few things make comparison fairer:
- Insist on a heat loss survey: a credible quote is built on a room-by-room heat loss calculation, not a rule of thumb. A quote with no survey behind it may understate the heat pump size or the radiator work needed, making it look cheaper than it really is.
- Check what is included: confirm whether the price covers the hot water cylinder, radiator upgrades, electrical work, controls, commissioning and the MCS certificate. A lower headline figure that excludes some of these is not genuinely cheaper.
- Look at the design flow temperature: a system designed to run at a lower flow temperature costs a little more to set up (more radiator work) but is cheaper to run for its whole life. The lowest-priced installation is not always the least expensive to own.
- Confirm MCS certification: the installer and product must be MCS-certified for the £7,500 grant, so check this is in place before comparing net prices.
- Ask about the warranty: warranty length and any servicing conditions affect the long-term cost of ownership.
Comparing quotes on these terms — rather than on the headline figure alone — gives a truer picture of value. A slightly higher quote built on a proper survey and a low design flow temperature can be the better long-term choice.
How the grant and VAT change the real cost
Two policy measures substantially reduce the net cost in the UK:
- Boiler Upgrade Scheme (BUS): a £7,500 grant towards an air source heat pump in England and Wales, available where the installer and product are MCS-certified and the property is eligible. Scotland has its own funding through Home Energy Scotland, which combines grants and interest-free loans.
- 0% VAT: the installation of heat pumps and other qualifying energy-saving measures attracts zero-rated VAT, a relief currently in place until March 2027.
Because the grant is fixed at £7,500 regardless of system size, it represents a larger proportion of the cost on a smaller, well-insulated home. For a well-prepared property, the grant can cover most of the installed price.
Frequently asked questions
Is the £7,500 Boiler Upgrade Scheme grant available to everyone?
It is available in England and Wales for properties with a valid EPC (with no outstanding insulation recommendations in most cases) where an MCS-certified installer carries out the work. It applies to homes replacing fossil-fuel heating such as gas, oil or LPG. Scotland has separate funding through Home Energy Scotland. Your installer confirms eligibility and applies for the grant on your behalf.
Why does a heat pump need a hot water cylinder?
Heat pumps deliver heat at a lower temperature than a gas boiler, so they cannot heat water on demand the way a combi boiler does. A hot water cylinder stores heated water ready for use. Homes converting from a combi boiler often need a new cylinder and somewhere to site it, which is part of the installed cost.
Does the price include radiator upgrades?
It depends on the heat loss survey. Because heat pumps run at lower flow temperatures, some radiators may need to be larger to deliver the same heat output. A reputable installer surveys the property and quotes for any radiator changes needed. A quote with no survey behind it may understate this element.
Sources & further reading
- Energy Saving Trust — air source heat pumps
- gov.uk — Boiler Upgrade Scheme
- Nesta — how much does a heat pump cost?
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.