How Much Does a Heat Pump Cost in the UK? (2025 Update)
A Clear Guide to Heat Pump Costs
If you’re considering switching to a renewable heating system, your first question is probably: “How much does a heat pump cost?”
This complete guide explains everything you need to know about heat pump pricing in the UK — including installation costs, government grants, running costs, potential savings, and what to expect from your investment.
Whether you’re comparing options or ready to install, this post will give you clear, up-to-date information that helps you make the right decision for your home.
Average Heat Pump Installation Costs (2025 UK Prices)
Air Source Heat Pump Cost
✅ Typical Range: £9,000 – £14,000
✅ Most common option in the UK
Costs can vary depending on:
– Property size
– Radiator upgrades
– Cylinder or underfloor heating
– Installer quality and experience
Ground Source Heat Pump Cost
✅ Typical Range: £20,000 – £30,000
✅ Higher efficiency, but more complex installation
Why it costs more:
– Requires groundwork (trenches or boreholes)
– Longer installation period
– Higher labour and equipment costs
Still, for homes with land, this system offers excellent long-term value.
➡️ TLC Renewables provides fixed-price quotes for homes in Essex, Suffolk, Norfolk and London, tailored to your exact property needs.
What Does the Price Include?
A typical quote from a reputable installer (like TLC Renewables) includes:
✅ Full MCS-accredited design & heat loss calculations
✅ All materials (heat pump unit, buffer tank, controls, cylinders)
✅ Electrical and plumbing installation
✅ Commissioning and setup
✅ Grant application support (Boiler Upgrade Scheme)
✅ Warranty and aftercare
The Boiler Upgrade Scheme (2025) – Get £7,500 Off
Great news: the UK government’s Boiler Upgrade Scheme provides a £7,500 grant for heat pump installations in England and Wales.
✅ Available for both air and ground source systems
✅ No income cap — all homeowners can apply
✅ Install must be done by an MCS certified installer
✅ TLC Renewables handles your grant application for you
For Example:
If your air source heat pump quote is £11,000 → your actual cost would only be £3,500 after the grant.
Running Costs vs Gas, Oil, and LPG Boilers
Heat pumps use electricity — but they’re far more efficient than traditional heating systems.
Heating Type
– Gas Boiler
– Oil Boiler
– LPG
– Heat Pump (ASHP)
Efficiency
– 90%
– 85%
– 85%
– 350% to 450%
Estimated Running Cost (per year)
~ £1,200
~ £1,500
~ £1,700
~ £900 to £1,100
✅ Savings: £300–£800/year vs oil or LPG
✅ Pair with solar PV for even lower bills
Factors That Affect Installation Cost
Every home is different. Here are some things that can change the final cost of your installation:
🔹 Property Size & Heat Loss
Larger homes or poorly insulated properties need bigger (and more expensive) systems.
🔹 Radiators or Underfloor Heating
Older radiators may need upgrading to larger models that can deliver lower temperature heat.
🔹 Cylinder Upgrade
Combi boilers will need a separate hot water cylinder installed.
🔹 Pipework or Electrical Upgrades
In some older properties, pipework or the consumer unit may need upgrading for safety.
Heat Pump Lifespan & Maintenance
✅ Lifespan: 15–20 years with regular servicing
✅ Maintenance: Annual service (~£150)
✅ No need for gas safety certificates or boiler breakdown insurance
TLC Renewables offers full servicing and support packages for every install.
Are Heat Pumps Worth the Investment?
Yes — especially when considering:
Government grant reduces upfront cost
Monthly savings on heating bills
Reduced carbon footprint
Energy price volatility protection
Increases your EPC rating and home value
Within 5–7 years, many homeowners fully recover the investment — with decades of savings after that.
Is My Home Suitable for a Heat Pump?
Heat pumps work best in:
Well-insulated homes (EPC rating D or better)
Homes with sufficient space outdoors (for ASHP) or land (for GSHP)
Properties with existing or new radiators / underfloor heating
Not sure? Our team will assess and advise as part of your estimate.
Real-World Example – Essex Heat Pump Installation (3-Bed Semi)
✅ ASHP system + unvented cylinder
✅ Radiator upgrades included
✅ Total cost: £11,250
✅ Grant: -£7,500
✅ Customer paid: £3,750
✅ Estimated savings: ~£600/year vs oil heating
Key Takeaways on Heat Pump Pricing
💷 Air Source Heat Pump: £7,000–£13,500
🌍 Ground Source Heat Pump: £20,000–£30,000
💸 Boiler Upgrade Scheme: Get £7,500 off
🧾 Running Costs: Lower than LPG or oil
🔧 Long-Term Savings: Payback in 5–8 years for most homes
🏆 Best Results: Work with an experienced, accredited installer