How Much Does a Heat Pump Cost in the UK in 2026?

The cost of an air source heat pump installation in the UK typically ranges from £8,000 to £15,000 before grants, depending on three main factors: the size of your home, the complexity of the installation, and the equipment specified.

A well-insulated three-bedroom semi-detached house might need a 7–10 kW unit, while a larger detached property with poor insulation could require 12–16 kW. The unit itself — we install the Vaillant aroTHERM Plus, which uses the natural refrigerant R290 (propane) — is only part of the cost. You also need to factor in the hot water cylinder (we recommend the Heat Geek Super Cylinder for its superior recovery rates), pipework modifications, upgraded radiators if needed, electrical works, and the outdoor unit installation.

The Boiler Upgrade Scheme (BUS) provides £7,500 towards the cost of an air source heat pump. From 21 July 2026, properties that are off the gas grid can claim an enhanced £9,000 grant.

This means a typical installation costing £12,000 could come down to £4,500 — or even £3,000 for off-gas homes. We handle the entire BUS application as part of our service, so there is no paperwork for you to manage. To qualify, you need a valid EPC and an existing fossil fuel heating system that the heat pump will replace.

A well-designed heat pump system should achieve a Coefficient of Performance (COP) of 3.5 or higher. This means for every 1 kWh of electricity it consumes, it produces 3.5 kWh of heat.

At current electricity rates (roughly 24p/kWh) and gas rates (roughly 7p/kWh), a heat pump costs about 6.9p per kWh of heat produced, compared to around 8p per kWh from a 90% efficient gas boiler. When you add solar panels into the mix, much of your daytime electricity is free, pushing running costs even lower.

The key to low running costs is proper design. At Greenmotion, we carry out full room-by-room heat loss calculations and design for low flow temperatures (typically 35–45°C), which maximises your heat pump’s efficiency.

Since April 2022, heat pump installations have attracted 0% VAT for domestic properties, saving you a further 20% on labour and materials. This zero-rate VAT applies automatically — you don’t need to apply for it separately. Combined with the BUS grant, a heat pump has never been more affordable.

Looking at the total cost of ownership over 15–20 years (the expected lifespan of a quality heat pump), the financial case is compelling. Lower running costs, zero VAT, the BUS grant, and the fact that you are protected from volatile gas prices all add up.

Beyond the finances, there is the comfort factor. A well-designed heat pump system with properly sized radiators or underfloor heating delivers consistent, even warmth throughout your home. No more cold spots or temperature swings.

If you would like a personalised cost estimate for your property, our free home survey takes about 90 minutes and gives you an exact price with no obligation.