Air source heat pump cost
An air source heat pump typically costs £13,000 in the UK, with most jobs between £8,000 and £18,000. Before you compare that with anything else: the work is zero-rated for VAT, and the Boiler Upgrade Scheme takes £7,500 off.
- Typical range £8,000–£18,000
- Most people pay £13,000
- After grant £5,500
- On site 2–3 days
What you would actually pay
Typical 3-bed semi · UK- Typical installed cost Air source heat pump, supplied and fitted
- £13,000
- VAT at 0% Energy-saving materials, until 31 March 2027
- £0
- Boiler Upgrade Scheme Your installer applies on your behalf and the grant comes off the quote.
- −£7,500
- Net cost to you
- £5,500
This 0% rate ends on 31 March 2027. The date that counts is when the work is completed, not when you sign. Check on GOV.UK (opens in a new tab).
If you borrowed £5,500.00 over 36 months at 0.0%, it would cost £152.78 a month — £5,500.00 in total, of which £0.00 is interest. The last payment would be £152.70.
Illustration only — not a quote, not an offer of credit, and not financial advice. Rates depend on your circumstances and creditworthiness.
Where the money goes
| Element | Typical range |
|---|---|
| Heat pump unit, 7kW to 12kW The outdoor unit itself. Sizing follows the heat loss survey, not the floor area. | £4,000 – £8,000 |
| Installation labour Two to three days on site for a typical three-bed. | £1,500 – £3,000 |
| Hot water cylinder Heat pumps need one. Households coming off a combi usually need it fitting from scratch. | £800 – £1,800 |
| Radiator upgrades and pipework Heat pumps run cooler, so some radiators are usually upsized. The most variable line on any quote. | £1,000 – £3,500 |
| Controls and commissioning Thermostat, weather compensation and balancing the system once it runs. | £400 – £900 |
| MCS certification Required before the Boiler Upgrade Scheme will pay out. | £300 – £600 |
Guide prices. Your actual cost depends on your property, access and specification.
What should be in a quote
If a quote is missing any of these, ask why before you compare it with another.
- A room-by-room heat loss survey
- An MCS-certified installer, with the certificate number
- Radiator sizing, listed room by room
- The hot water cylinder and where it will go
- The grant, shown as a line on the quote
- Removing and disposing of the old boiler
What moves the price
- Heat loss, not floor area
A well-insulated four-bed can need a smaller unit than a draughty two-bed. The survey drives the price far more than the size of the house.
- Whether radiators need upsizing
Heat pumps run at lower flow temperatures, so a radiator that suited a boiler may be undersized. This is the widest-swinging line on the quote.
- Where the cylinder goes
Homes without an airing cupboard need space found, and sometimes pipework rerouted to reach it.
- Your existing fuel
Oil and LPG homes off the gas grid qualify for an extra 1,500 pounds until March 2027.
Common questions
Do I need to replace my radiators?
Often some, rarely all. A heat pump runs at a lower flow temperature, so a radiator that was adequate for a boiler may be undersized. A proper heat loss survey tells you which ones, room by room, and that list should appear on the quote.
Is the grant paid to me?
No. Your installer applies for it and takes it off the price, so you pay the balance. That is why it should appear as a line on the quote rather than something you claim back afterwards.
Why is there no VAT on the installation?
Heat pumps count as energy-saving materials, which are zero-rated until 31 March 2027 where the same contractor supplies and installs them. After that the rate returns to 5%.