Thinking about making the switch to a heat pump? It’s a smart move—energy-efficient, low carbon, and increasingly popular here in the UK. But let’s not sugar-coat it: understanding the real cost of installation can be confusing. Between different types of systems, varying property needs and financial support schemes, it’s not always easy to work out what you’ll actually pay. That’s why we’ve pulled together this complete guide to help you cut through the noise and feel more confident about your decision.
Average Heat Pump Installation Cost in the UK
So if you’re wondering: “how much does heat pump installation cost?” - The short answer is—it depends. But we’ll break it down so you know what to expect and what’s considered typical.
Air Source Heat Pump Cost
This is the more common type of heat pump in the UK and also the most budget-friendly to install. Air source heat pumps usually cost between £7,000 and £13,000, including installation. The variation largely comes down to the complexity of your home’s layout and how much adaptation is needed to integrate with your current system.
These systems pull heat from the outside air and use it to warm your home. They're relatively easy to install compared to ground source systems, which is one of the reasons for the lower upfront cost.
Ground Source Heat Pump Cost
Ground source heat pumps are a bigger investment, typically ranging from £14,000 to £25,000. Why the jump in cost? These systems require underground pipework to extract heat from the ground. If you’ve got plenty of outdoor space and you’re renovating or building from scratch, it can be a worthwhile upgrade—but it’s definitely not a budget option.
Still, it’s not just about installation. Ground source systems tend to be slightly more efficient than air source pumps, so you could see stronger savings over the long term.
Factors That Affect Heat Pump Installation Cost
There’s no one-size-fits-all price tag. Here’s what really moves the needle when it comes to cost.
Property Size and Type
Bigger house? Bigger cost. That’s the reality, unfortunately. A detached home will usually cost more to fit with a heat pump system than a flat or smaller terraced house. You’ll need more pipework, more labour, and often a larger-capacity unit.
It’s not just size, though—insulation matters. A well-insulated home will require less energy to heat, meaning you won’t need as powerful (or expensive) a system.
Type of Heat Pump
Air source or ground source? As mentioned above, the type you choose will significantly affect the price. There’s also hybrid systems to consider, which combine a heat pump with a traditional boiler for maximum flexibility—though this can also mean more complex (and costly) installation.
If you're still weighing up your options, take a moment to view energy-efficient heating choices before making your decision.
System Efficiency and Brand
Just like with any appliance, brand and performance matter. Premium heat pump brands might charge more upfront, but often offer better energy efficiency and longer warranties. That could mean lower running costs and fewer maintenance headaches down the line.
Existing Heating System
Swapping out an old boiler? That’s not always as straightforward as it sounds. Depending on your current setup, your installer might need to replace radiators, change pipework, or upgrade your hot water cylinder. All of that adds time and labour—both of which cost money.
In some cases, it’s worth looking at the cost of installing central heating system from scratch to compare what’s involved.
Location and Installer Rates
Not all installers charge the same. Labour costs can vary based on your region, especially if you're in London or a remote area. It’s always worth getting multiple quotes so you can see where your money’s going and spot any wildly out-of-line estimates.
Ongoing Costs and Savings
Installation’s just the beginning. Let’s talk about what happens after everything’s fitted and switched on.
Running Costs
Heat pumps run on electricity, so your bills will depend on your current electricity tariff and how efficient your system is. Generally, air source heat pumps cost around £500 to £1,000 per year to run for an average home—less than gas in many cases, especially as gas prices rise.
Maintenance Costs
The good news? Heat pumps are low maintenance. Most require just an annual service, which might cost around £100 to £150. No need for regular boiler checks or carbon monoxide concerns—just simple, consistent upkeep.
Long-Term Energy Savings
Heat pumps might have a higher upfront cost, but they can significantly reduce your energy bills over time. With energy prices where they are, this kind of efficiency makes a big difference. Depending on your home and usage, you could save £300–£600 per year on heating costs. Over a decade, that adds up.
Government Grants and Financial Support
If you're hesitant about the price tag, the government’s Boiler Upgrade Scheme (BUS) could make a real difference. It offers £7,500 towards the cost of installing an air source or ground source heat pump in England and Wales.
Scotland has its own Home Energy Scotland Grant, which includes interest-free loans and cashback incentives. It's always worth checking the latest eligibility rules and applying early—these schemes often have limited annual funding.
How to Save on Installation Costs
There are smart ways to cut down your outlay—without cutting corners.
Compare Multiple Quotes
Don't just go with the first installer you find. Getting at least three quotes helps you understand what's fair and gives you bargaining power. Be wary of any that seem too low—it might mean corners are being cut
Check for Grant Eligibility
We mentioned this earlier, but it’s worth repeating: always see if you qualify for grants or low-interest loans before you commit. It could knock thousands off your bill, especially if you’re switching from fossil fuels.
Choose the Right Size and Type
Oversizing your system won’t make your home warmer—it’ll just cost you more. The key is getting the right system for your home’s layout, insulation, and daily usage. A trusted installer should guide you through this and perform a full heat-loss survey before recommending a unit.
Install During Renovations or New Builds
Already redoing your home? That’s the perfect time to install a heat pump. You’ll save money on labour and materials since floors, walls, or heating systems may already be exposed. It’s also easier to integrate the pump with underfloor heating or a modern radiator setup.
Final Thoughts
Heat pumps aren’t cheap—but they’re an investment in your home, your energy bills, and the planet. While the heat pump installation cost UK homeowners face can feel steep, the long-term savings, comfort and sustainability they offer are hard to ignore.
If you’re exploring energy-efficient upgrades, take a look at your options and think long-term. With the right system, a solid installer, and any available grants, you’ll be in a great position to future-proof your home.
And if you’re still on the fence? That’s completely normal. But don’t let confusion put you off—start by researching what’s right for your property and budget. The right choice might be simpler than you think.
