How much does a heat pump cost in the UK? (2026)

The short answer

The Energy Saving Trust puts the typical cost of installing an air source heat pump at around £12,000. Which?, using official data from the Boiler Upgrade Scheme, found the average air source heat pump installed between October and December 2025 (the latest data at the time) cost £13,431 for an average 8.4kW unit.

Most homes in England and Wales can get £7,500 off through the Boiler Upgrade Scheme, which brings a typical air source heat pump down to roughly £4,500 to £6,000.

Air source vs ground source

• Air source heat pumps sit outside, like a large fan unit, and take heat from the air. They are by far the most common choice. Typical cost: around £12,000 to £13,500 before the grant.
• Ground source heat pumps take heat from pipes buried in the garden. The Energy Saving Trust says they typically cost around £15,000 with pipes laid in trenches, and considerably more if a borehole is needed. Which?’s analysis of government data found an average of about £25,000, so expect a wide range.

Both types get the same £7,500 grant in England and Wales.

What affects the price

• The size of your home and how much heat it needs, which sets the size of the heat pump.
• Radiators. Heat pumps run at lower temperatures than boilers, so some radiators may need to be swapped for larger ones.
• Hot water. Most heat pumps need a hot water cylinder, ideally inside the house. If you have a combi boiler now, you will need space for one.
• Ground works. For ground source, trenches cost much less than a borehole.
• Your home’s insulation. A well insulated home needs a smaller heat pump and fewer radiator changes.

No VAT until March 2027

Heat pumps installed in homes are zero-rated for VAT until 31 March 2027, after which the rate goes back to 5%.

What does a heat pump cost to run?

Heat pumps are very efficient. The Energy Saving Trust says that for every unit of electricity they use, they give out three to four times as much heat. Which? says a typical air source system manages around three times, often described as 300% efficient.

The catch is the price of electricity. Under the Ofgem price cap for October to December 2026, electricity costs 26.32p per kWh and gas 7.97p, so electricity is more than three times the price. That means, on a standard tariff, a heat pump may cost about the same as a new gas boiler to run, and the Energy Saving Trust warns it can cost slightly more.

The savings come from two things:

• Heat pump tariffs. Some energy suppliers offer cheaper electricity for heat pumps at certain times. An expert quoted by Which? says that, with a well-installed, efficient heat pump on a heat pump tariff, a household could cut running costs by more than half compared with a gas boiler.
• Coming off gas. If you have no other gas appliances, you can drop the gas standing charge altogether.

Paying for the rest

The government’s new Warm Homes Loan Scheme, open to homeowners across the UK from September 2026, offers cheaper loans for the cost left after the £7,500 grant. The caps are £20,000 for an air-to-water heat pump and £35,000 for a ground source one, measured before the grant is taken off. You apply through a lender taking part in the scheme.

How long do they last?

Which? says a ground source heat pump should run for 20 years or more. Most manufacturers recommend a yearly service, and some warranties require one, so check the terms with your installer.

What to do next

We’re getting ready to launch free heat pump quotes. Leave your email below, or on our heat pump quotes page, and we’ll let you know the day it opens. In the meantime, if you’re also thinking about solar, see our guide to solar grants and loans.