How Much Does a Heat Pump Cost in the UK?

Heat pumps offer a number of benefits that gas and oil pumps don’t: they are efficient, make use of renewable resources, and have a longer lifespan. However, the initial cost of installing a heat pump is significant. Prices start from £5,000 and, depending on the size of the property, can exceed £15,000.

Despite this sizable once-off cost, this is a very good time to consider purchasing a heat pump. To help with the cost of heating homes, the government’s Boiler Upgrade Scheme (BUS) allows applicants to reduce the cost of installing an air source heat pump by £5,000. As of 23 October 2023 the grant for air source heat pumps will increase to £7,500. Combined with an upcoming gas boiler ban, this makes a heat pump a very worthwhile investment.

Running costs: heat pumps vs other heating methods

For a three-bedroom property, the annual running costs for a heat pump will usually fall between £1,000 and £1,100.

Comparatively, a gas boiler has annual running costs of around £800 for a property of the same size. But this is likely to change, with gas prices continuing to rise and electricity costs expected to reduce.

Oil and electric boilers have annual running costs of £1,350 and £1,650 respectively.

Heat pump government grants

Government grants for heat pumps are something that you can and definitely should use. In a nutshell, the Boiler Upgrade Scheme allows a grant of £5,000 to any homeowner in England towards the installation of an air source heat pump.

For further information and tips on how to maximise government grants for heat pumps, take a look at our detailed guide here.

Heat pump servicing

A well-maintained heat pump will work for at least 20 years.

To keeps yours in perfect working order, follow these air source heat pump service tips:

Before installation, ask your installer to detail any regular maintenance checks you should carry out.
Have the heat pump serviced every 2 - 3 years by a professional.
Keep your heat pump running efficiently by keeping the fan clear of leaves, dust, snow or any other blockages.
For protection against extreme weather, you can purchase a heat pump cover for the outside unit.

The different types of heat pumps

There are 4 types of heat pumps:

Air source
Ground source
Water source
Air-to-air source

While all are efficient, air source heat pumps offer an excellent balance between price and performance.

Air source heat pumps draw warmth from outside air and use it to heat your hot water supply. They have a much lower carbon footprint than gas boilers and can work in temperatures as low as -25°C. Average cost: £10,000.

Ground source heat pumps draw warmth from under the ground, making for a more invasive installation process than air source heat pumps. While the ground warmth is more consistent and efficient than air, ground source heat pumps are the most expensive heat pump type. Average cost: £24,000.

Water source heat pumps require a large source of water (like a lake or river). This is a particular requirement, but because heat transfers better through water, these are the most efficient heat pump type. Average cost: £10,000.

Air-to-air source heat pumps don’t heat your water supply - instead acting as a heater in winter and an air conditioner in summer. Because a separate system is required for water heating, air-to-air source heat pumps are the most affordable type of heat pump. Average cost: £1,750.

The benefits of an air source heat pump

Over and above their functionality, air source heat pumps offer 3 main benefits.

They are environmentally friendly. On average, an air source heat pump uses about a quarter of the energy of a gas boiler.

They reduce energy bills. While the initial cost of fitting a heat pump is high, their efficiency and lower running costs make them an ideal long-term option.

They have a long lifespan. At about 20 years, a heat pump has a 25% longer lifespan than that of a traditional gas boiler.

Enula: For all your heat pump needs

At Enula, we supply and install air source heat pumps in homes and buildings across the UK. Passionate about sustainability, we exist to ensure our planet has a future for everyone and everything on it.