How much does a heat pump cost in the UK in 2026?

A typical air source heat pump installed in a UK home costs £8,000–£14,000 in 2026. After the £7,500 Boiler Upgrade Scheme grant in England and Wales, the net cost falls to roughly £500–£6,500. Ground source heat pumps cost £18,000–£35,000 installed.

How much does a heat pump cost to run per year?

Running costs in the UK typically fall between £850 and £1,850 a year depending on property size, insulation level and the SCOP of the unit. A well-insulated 3-bed semi with a SCOP of 4.5 averages around £1,100/yr at current electricity prices.

Is a heat pump cheaper than a gas boiler?

In a well-insulated home a heat pump usually matches or slightly undercuts a gas boiler on annual running costs. In poorly insulated homes it can cost more to run. The upfront install is higher, but the £7,500 grant closes much of the gap.

Cost guide · 2026

How much does a heat pump actually cost?

For most UK homes, an installed air source heat pump costs £8,000 to £14,000 before the £7,500 grant, or £500 to £6,500 after. Ground source systems cost more but run more efficiently in winter.

ASHP install

£8k–£14k

GSHP install

£18k–£35k

BUS grant

£7,500

Running / yr

£850–£1.9k

What you're paying for

The five line items on a typical quote.

Every MCS install bundles roughly the same components — here's the share each one typically takes.

Heat pump unit

£3,500 – £7,000

Depends on brand and kW rating.

Hot water cylinder

£900 – £1,800

Most gas-boiler homes need a new unvented cylinder.

Installation labour

£2,000 – £4,000

2–5 days for a typical retrofit.

Radiator upgrades

£600 – £2,000

30–60% of homes need 2–5 larger rads.

Pipework, controls & commissioning

£800 – £2,000

Including MCS handover.

By property type

What does it cost for a home like yours?

Typical installed prices for UK property types, before and after the £7,500 grant.

Property

Type

Install

After grant

2-bed flat

ASHP · 5 kW

ASHP

£8,500

£1,000

3-bed semi (well insulated)

ASHP · 7 kW

ASHP

£10,500

£3,000

3-bed semi (poorly insulated)

ASHP · 9 kW

ASHP

£12,000

£4,500

4-bed detached

ASHP · 12 kW

ASHP

£14,000

£6,500

4-bed detached (rural, off-grid)

GSHP · 12 kW

GSHP

£24,000

£16,500

5-bed farmhouse

GSHP · 16 kW

GSHP

£32,000

£24,500

Running costs

Roughly the same as gas. Much cheaper than oil.

At ~27p/kWh electricity and a typical SCOP of 3.5–4.5, a heat pump costs £850–£1,900 per year for an average home. That's usually comparable to gas and significantly cheaper than oil or LPG.

Typical 3-bed semi

£1,100/yr

7 kW air source, SCOP 4.2, well-insulated UK home.

A poorly insulated home with an undersized unit can cost much more to run. Get a proper room-by-room heat-loss survey before signing — any MCS installer will do this.

The £7,500 grant

The Boiler Upgrade Scheme takes £7,500 straight off your invoice.

Available across England and Wales — your installer applies on your behalf. Scotland has its own scheme via Home Energy Scotland (up to £15,000 in grants + loans).

Full guide to UK heat pump grants

FAQs

Frequently asked

How much does a heat pump cost in the UK in 2026?: A typical air source heat pump installed in a UK home costs £8,000–£14,000 in 2026. After the £7,500 Boiler Upgrade Scheme grant in England and Wales, the net cost falls to roughly £500–£6,500. Ground source heat pumps cost £18,000–£35,000 installed.
How much does a heat pump cost to run per year?: Running costs in the UK typically fall between £850 and £1,850 a year depending on property size, insulation level and the SCOP of the unit. A well-insulated 3-bed semi with a SCOP of 4.5 averages around £1,100/yr at current electricity prices.
Is a heat pump cheaper than a gas boiler?: In a well-insulated home a heat pump usually matches or slightly undercuts a gas boiler on annual running costs. In poorly insulated homes it can cost more to run. The upfront install is higher, but the £7,500 grant closes much of the gap.

Go deeper

Go deeper on UK heat pump costs

Start now — it’s free

Get a price for your exact home.

Free, no-obligation quotes from up to 3 MCS-certified installers in your area.

Get 3 free quotes Read the cost guide →