How much does an air source heat pump cost?
Real installation costs from government data, and how we quote
In the three months to September 2026, the typical air source heat pump installed under the Boiler Upgrade Scheme cost £12,826, according to government statistics. Take off the £7,500 grant and you're looking at roughly £5,300 for a typical job. Your home could sit well above or below that, so here's what the official figures show, what pushes the price around, and how we work out a fixed price for yours.
What people actually paid
These figures come from the government's Boiler Upgrade Scheme statistics, published 29 October 2026. They're based on costs installers report on MCS certificates, including VAT, and they're meant to show the full price before the grant comes off. They are national figures, not our prices.
In July to September 2026 the median installation was £12,826, and the middle half of jobs fell between £10,717 and £15,461. Size makes the biggest difference. Median costs for 2025/26, by heat pump output:
- 4kW to 6kW: £11,494
- 6kW to 8kW: £12,164
- 8kW to 10kW: £12,688
- 10kW to 12kW: £13,948
- 12kW to 14kW: £15,366
- 14kW to 16kW: £15,498
- All sizes, across 30,516 installations: £13,024
What pushes the price up or down
The heat pump itself is only part of the bill. A well insulated three-bed that needs a small unit and a couple of new radiators sits at the cheap end. A big, draughty farmhouse needing a 14kW unit, a large cylinder and new radiators in every room sits at the other.
The things we look at on a survey:
- Heat loss: the bigger the heat loss, the bigger (and dearer) the unit
- Radiators: how many need upsizing to work at lower temperatures
- Hot water: a new cylinder is normally needed, especially if you have a combi now
- Pipework: old microbore pipe sometimes needs replacing to carry enough heat
- Electrics: some homes need an upgraded supply or consumer unit work
- Siting: a long pipe run from the outdoor unit adds labour
The grant and VAT both help
The Boiler Upgrade Scheme gives £7,500 off an air source heat pump in England and Wales. Until March 2027, homes heated by oil or LPG with no mains gas connection can get £9,000. Installers have to take the grant off your upfront price, and it appears on your quote. See our Boiler Upgrade Scheme page for who qualifies.
Installing a heat pump in a home is also zero-rated for VAT until 31 March 2027, under HMRC's energy-saving materials rules. After that, HMRC says the rate goes to 5%.
How we price your job
We don't quote from a postcode. We survey the house, do a room-by-room heat loss calculation, and then give you a fixed price with the grant already deducted. No surprise extras once we've started.
Want to know more about the work itself first? Our air source heat pump installation page explains what's involved, and you can ask for a free quote whenever you're ready.
What is included
- Home survey and room-by-room heat loss calculation
- Written design showing unit size, radiators and cylinder
- Fixed price with the Boiler Upgrade Scheme grant already taken off
- Clear list of any radiator, pipework or electrical upgrades
- Finance options available if you'd rather spread the cost
Air source heat pump cost FAQs
Is £5,000 to £6,000 after the grant realistic?
For a typical home, the official numbers put it in that area: a median of about £12,800 before the £7,500 grant. But median means half of jobs cost more. Bigger homes, lots of radiator changes or electrical work push it up, so treat it as a sense check rather than a promise.
Why do heat pump quotes vary so much?
Mostly because some quotes include proper design work and others don't. A quote that skips the heat loss calculation can look cheap and then leave you with an undersized unit. Ask every installer how they sized the system. If they can't show you room-by-room figures, be wary.
Are running costs higher than oil or gas?
It depends on your electricity tariff, how well the system is designed, and what you're paying for oil, LPG or gas now. We'd rather not throw a number at you without seeing the house. A well designed system on a sensible tariff is what keeps the bills down.
Can I pay monthly?
Yes, finance options are available on heat pumps. Have a look at our boiler and heat pump finance page, and we can talk it through when we quote.
Does a ground source heat pump cost more?
Usually a lot more, because of the trenches or boreholes. The government data puts the 2025/26 median for ground source at £26,500 before the grant. Our ground source heat pump page covers when it's worth it.
Get a fixed price for your home
Tell us about the job and we will arrange a free survey.