How much does an air source heat pump cost?

Checked November 2026

The Energy Saving Trust puts the typical cost of installing an air source heat pump at around £12,000 (EST, page updated October 2026). In England and Wales the Boiler Upgrade Scheme takes £7,500 off that if you qualify. So for a typical install you’d be looking at roughly £4,500, though your own quote could be well above or below that.

The rest of this guide explains where that money goes. And why two quotes for the same house can look so different.

How much does the grant take off?

Start with the EST figure. It’s a national typical cost, not a price list. The EST says the cost changes with the size of the heat pump, the size of your home, whether it’s a new build and whether your radiators need upgrading.

Then take off the grant. The Boiler Upgrade Scheme pays £7,500 towards an air source (air to water) heat pump. Your installer applies for it and it comes straight off your quote. You don’t get a cheque.

	Typical cost (estimate)
Typical air source heat pump install (EST, Oct 2026)	about £12,000
Boiler Upgrade Scheme grant	minus £7,500
What you’d pay on a typical job	about £4,500

That’s simple sums on a national average. It isn’t a quote.

Homes off the gas grid replacing oil or LPG get £9,000 instead until 31 March 2027, according to Ofgem, which would bring the same typical job down to about £3,000. You need to own the home, be replacing fossil fuel heating and use an MCS certified installer, and there are further rules on new builds, social housing and hybrids in the Boiler Upgrade Scheme conditions.

What’s included in a heat pump quote?

A heat pump quote is a lot more than the box in the garden. When we price an air source heat pump installation, these are the parts that make up the total. Some homes need very little beyond the unit. Others need a fair bit.

The heat pump itself

This is the outdoor unit and its controls. Size matters more than brand here. A heat pump should be sized to your home’s heat loss, worked out room by room, not guessed from the number of bedrooms. A unit that’s bigger than you need just costs more to buy.

The price also depends on the type. Most installs are monobloc, where everything sits in the outdoor unit. Split systems put part of the kit indoors. The EST says split systems can be more efficient, but monobloc systems tend to be cheaper and quicker to fit.

What it costs to run afterwards is a separate sum. We work it through with every assumption shown in our guide to heat pump running costs.

Do I need a hot water cylinder?

Most homes do. Heat pumps don’t heat water on demand the way a combi boiler does. They store it. So the cylinder is often one of the bigger items on the quote after the unit itself.

If you already have a cylinder, we’ll check whether it can work with a heat pump. Not every cylinder can. If you have a combi now, we also have to find room for one. Ask where a heat pump hot water cylinder would go and what size it needs to be.

Radiators and pipework

A heat pump runs at a lower water temperature than a boiler. That means a radiator gives out less heat, so some rooms need a bigger radiator to stay warm. Often that’s only a few rooms. Sometimes it’s most of them.

This is the line that varies most between homes. A well insulated 1990s semi might keep nearly all its radiators. An older house with small single panel radiators might need several changed. Pipework can come into it too, especially very narrow microbore pipes. We cover this in do I need new radiators for a heat pump?

Electrics and the network notification

A heat pump needs its own electrical supply from your consumer unit. If your fuse board is old or full, it may need work first. That’s a real cost and it should be on the quote, not sprung on you on the day.

Your local electricity network operator also needs to know about the heat pump. In most cases that’s paperwork for the installer rather than a cost to you. But it can affect timings.

Other items you might see are a concrete base or wall brackets for the outdoor unit, removing the old boiler, flushing the system and commissioning. Ask for each one to be listed. If a quote is one number with no breakdown, you can’t compare it with anything.

Why do heat pump quotes vary so much?

The EST recommends getting quotes from at least three MCS certified installers. That’s good advice, and you’ll probably find the prices are quite far apart.

Some of that is fair. One installer might have surveyed your home properly and found that four radiators need changing. Another might have quoted from a quick look and left them out. The second quote looks cheaper. It isn’t, if you end up cold in January or paying for extras later.

Here’s what usually causes the gap:

• Heat loss survey or not. A proper room by room heat loss calculation is part of the MCS standard. It tells you what size heat pump and which radiators you need. A quote without one is a guess.
• What’s included. Cylinder, radiators, electrics, removal of the old system. Check each quote lists the same things.
• The kit. Different brands and models cost different amounts. A bigger unit than you need costs more.
• Your house. Access for the outdoor unit, where the cylinder goes, and how far pipes need to run all affect labour.

When you compare, put the quotes side by side line by line. If one is much lower, ask what’s missing. A good installer won’t mind the question. And if you’re still checking whether your home suits a heat pump at all, start there before you collect quotes.

Is there VAT on a heat pump?

Not at the moment. HMRC’s VAT notice 708/6 says installations of energy saving materials, which includes heat pumps, are zero rated until 31 March 2027. From 1 April 2027 the rate goes back to 5%.

To give a rough idea, 5% on £10,000 of work is £500. That’s just an illustration. The real figure depends on your quote.

That date comes from HMRC. It isn’t a sales line. But don’t rush a decision because of it. If your boiler is working fine and you’re not sure yet, a few hundred pounds of VAT isn’t a good reason to sign. Our guide on heat pump or gas boiler compares the two if you’re still weighing it up. If you’re already planning to switch, it’s worth knowing that jobs after the end of March will cost a bit more.

It’s also worth knowing that a heat pump has to be installed within 120 days of the grant application. So if you want the 0% VAT rate, don’t leave it to the last week of March.

Frequently asked questions

How much is a heat pump after the grant?

On the EST’s typical figure of about £12,000, you’d pay about £4,500 after the £7,500 grant. If you’re replacing oil or LPG, the grant is £9,000, which would leave about £3,000. These are estimates based on a national average. Your price depends on your home, and you’ll only know it after a survey.

Does the cost include new radiators?

It should, if your home needs them. A quote based on a proper heat loss survey will say which radiators change. If a quote doesn’t mention radiators at all, ask why.

Why are some heat pump prices online so low?

Some adverts show the price after the grant has already come off. Others leave out the cylinder, radiators or electrics and add them later. Neither is wrong as such, but it makes comparing hard. Always ask what’s included and whether the £7,500 has already been taken off. Then compare quotes on the same basis.

Want to know what it would cost for your home? Our free home assessment looks at your house room by room and tells you what you’d need.

Sources

• Energy Saving Trust, “Air source heat pumps: costs, savings and benefits” (typical cost about £12,000, quote advice, monobloc and split systems, last updated 20 October 2026), checked 3 November 2026, energysavingtrust.org.uk
• Energy Saving Trust, “Air source heat pumps vs ground source heat pumps” (also about £12,000, last updated 16 July 2026), checked 3 November 2026, energysavingtrust.org.uk
• Ofgem, “Boiler Upgrade Scheme” (grant amounts, £9,000 until 31 March 2027), checked 2 November 2026, www.ofgem.gov.uk
• GOV.UK, “Notice of approved grant categories and values for the Boiler Upgrade Scheme” (£9,000 for oil or LPG replacements from 21 July 2026), checked 2 November 2026, www.gov.uk
• GOV.UK, “Check if you’re eligible for the Boiler Upgrade Scheme”, checked 2 November 2026, www.gov.uk
• HMRC, “VAT on energy-saving materials and heating equipment (VAT Notice 708/6)”, checked 3 November 2026, www.gov.uk
• GOV.UK, “Boiler Upgrade Scheme: approved standards” (MCS standards incl. room by room heat loss), checked 2 November 2026, www.gov.uk