An air source heat pump typically costs £8,000 to £16,000 to supply and install in the UK, and the cost of installing air source heat pump systems in Scotland is similar. With the £7,500 Boiler Upgrade Scheme grant taken off, most homeowners in England and Wales pay between £1,500 and £8,000. The final figure depends on the size of the heat pump your home needs and how much of your existing heating system has to change.
Air source heat pump prices by house size
These are typical installed prices for 2026, including the outdoor unit, hot water cylinder, controls, labour and commissioning. Your fixed quote will be based on a heat loss survey of your home.
| Home | Typical size | Installed cost | After £7,500 grant |
|---|---|---|---|
| 1 to 2 bed flat or terrace | 4 to 6 kW | £8,000 to £11,000 | £500 to £3,500 |
| 3 bed semi-detached | 6 to 8 kW | £10,000 to £13,000 | £2,500 to £5,500 |
| 4 bed detached | 8 to 11 kW | £12,000 to £16,000 | £4,500 to £8,500 |
| 5+ bed or older detached | 12 to 16 kW | £14,000 to £20,000+ | £6,500 to £12,500+ |
Prices include 0% VAT. Heat pumps installed in homes are zero-rated for VAT until 31 March 2027, saving roughly £2,000 on a typical installation compared with the standard rate.
What's included in an air source heat pump installation
- The outdoor heat pump unit, sized from your home's heat loss.
- A hot water cylinder. Heat pumps heat stored water, so if you have a combi boiler you'll need one (usually 150 to 300 litres).
- Pipework, buffer or volumiser and system flushing.
- Radiator upgrades where existing radiators are too small to heat a room at lower flow temperatures.
- Controls: a smart thermostat or the manufacturer's app, and weather compensation.
- MCS certification and the grant application, which your installer handles.
- Removal of your old boiler and, for oil or LPG, decommissioning of the tank.
Air source heat pump running costs
Running costs depend on how much heat your home needs, how efficient your system is (its SCOP, or seasonal coefficient of performance) and your electricity tariff. A well-designed system runs at a SCOP of 3 to 4, meaning it delivers 3 to 4 kWh of heat for every 1 kWh of electricity.
Here's an illustrative comparison of the cost per day for a three-bed home needing 12,000 kWh of heat a year, averaged across the year (winter days cost more, summer days much less). Prices are examples: check your own tariff.
| Heating system | Efficiency | Fuel price (example) | Approx. cost per day |
|---|---|---|---|
| Heat pump on a heat pump tariff | SCOP 3.5 | 15p/kWh average | £1.41 |
| Heat pump on a standard tariff | SCOP 3.5 | 25p/kWh | £2.36 |
| Gas boiler | 90% | 6p/kWh | £2.19 |
| Oil boiler | 85% | 7p/kWh | £2.71 |
| LPG boiler | 85% | 9p/kWh | £3.48 |
| Electric storage heaters | 100% | 25p/kWh | £8.22 |
Per-day figures are the yearly cost divided by 365 and exclude standing charges. On a cold January day a heat pump in the same home might cost £3 to £5 to run; on a mild summer day, when it only heats water, well under £1. Switching off gas entirely also removes your gas standing charge, saving roughly another 30p a day.
Heat pump installation cost: what affects the price?
- Heat loss. Bigger, older or draughtier homes need a larger, more expensive unit.
- Radiators. Replacing several radiators can add £1,500 to £3,000.
- Cylinder space. Finding room for a cylinder in a combi-boiler home can mean extra work.
- Brand and model. Premium brands and quieter units cost more.
- Access and pipe runs. Long pipe runs or difficult siting add labour.
Air source heat pump cost Scotland: prices and grants
The air source heat pump cost in Scotland is similar to the rest of the UK: typically £8,000 to £16,000 installed, with larger or older rural homes at the top of that range. What differs is the grant funding. The Boiler Upgrade Scheme doesn't apply in Scotland; instead, Home Energy Scotland offers:
- a grant of up to £7,500 towards an air source heat pump;
- an extra £1,500 rural uplift for eligible rural homes (so up to £9,000 in total);
- an optional interest-free loan to cover some or all of the remaining cost.
| Scottish home | Installed cost | After £7,500 grant | Rural, after £9,000 |
|---|---|---|---|
| 1 to 2 bed flat or cottage | £8,000 to £11,000 | £500 to £3,500 | £0 to £2,000 |
| 3 bed semi or bungalow | £10,000 to £13,000 | £2,500 to £5,500 | £1,000 to £4,000 |
| 4 bed detached | £12,000 to £16,000 | £4,500 to £8,500 | £3,000 to £7,000 |
You must apply to Home Energy Scotland and get approval before work starts, and use an MCS-certified installer. Heat pumps in Scotland are also zero-rated for VAT until March 2027. Many rural Scottish homes are off the gas grid and heated by oil or LPG, the fossil fuel systems where switching to a heat pump saves the most on energy bills.
Upfront costs vs long-term energy bills
The cost of installing an air source heat pump is higher than a like-for-like boiler swap, but the grant closes most of that gap, and running costs can be lower. The savings depend on what you're replacing:
- From oil, LPG or electric storage heaters: energy bills usually fall noticeably, often by hundreds of pounds a year.
- From mains gas: running costs are roughly level on a standard tariff and lower on a heat pump tariff.
- With solar panels: daytime solar power runs the heat pump for free, cutting home energy costs further.
- In an energy efficient home: good insulation means a smaller, cheaper heat pump and lower bills.
Ground source heat pumps are a little more efficient but cost £20,000 or more to install, so for most homes air source gives the better return. See ground source vs air source.
Cost by property type
House size is the starting point, but the type of property also changes the cost of installing an air source heat pump:
- Flats and maisonettes: small heat demand, so a compact 4 to 5 kW unit is usually enough. Costs rise if the outdoor unit needs a wall bracket at height or the freeholder requires extra work.
- Terraced houses: typically 5 to 7 kW. Solid-wall Victorian terraces may need several larger radiators, adding £1,000 to £2,500.
- Semi-detached houses: the most common install, usually 6 to 8 kW, often with only a couple of radiator changes.
- Bungalows: often straightforward, with space for the cylinder and unit. Good loft insulation keeps the unit size down.
- Detached and older country homes: 10 to 16 kW, sometimes with a larger cylinder and more radiator work, which puts them at the top of the price range.
Air source heat pump costs across Scotland
Installers' prices vary a little across Scotland, mainly because of travel and access rather than equipment:
- Edinburgh, Glasgow and the Central Belt: plenty of installers keep prices competitive. Tenement flats need the owners' agreement for any wall-mounted unit, and space for a cylinder can be tight.
- Aberdeen, Dundee and the north-east: colder, windier winters can mean a slightly larger heat pump than an equivalent home further south.
- Highlands, islands and rural areas: travel costs can add to the price, but these homes are often heated by oil, LPG or electric storage heaters, so the running cost savings are largest. They're also the homes most likely to qualify for the £1,500 rural uplift from Home Energy Scotland.
Radiators vs underfloor heating: the cost difference
Heat pumps run at lower water temperatures than boilers, so how heat reaches each room matters:
| Option | Typical extra cost | Notes |
|---|---|---|
| Keep existing radiators | £0 | Possible where radiators are already large enough |
| Upgrade 2 to 4 radiators | £600 to £2,000 | The most common situation |
| Upgrade most radiators | £2,000 to £4,000 | Older or poorly insulated homes |
| Underfloor heating (one floor, retrofit) | £3,000 to £8,000+ | Most efficient with a heat pump; best done during a renovation |
Underfloor heating lets a heat pump run at its most efficient, around 35°C, but retrofitting it means lifting floors. For most homes, upgrading a few radiators is the cheaper route.
Extra costs to budget for
- An Energy Performance Certificate: around £60 to £120 if you don't have a valid one (needed for the grant).
- Electrical upgrades: a new consumer unit or supply upgrade can add a few hundred pounds.
- Removing an oil tank: typically £300 to £800.
- Making good: redecorating around new radiators or a cylinder cupboard.
- Annual servicing: about £100 to £200 a year, usually required to keep the extended warranty.
The 20-year cost: heat pump vs boilers
Comparing only the upfront costs can be misleading, because a heat pump lasts longer and can cost less to run. This illustrative comparison for a three-bed home ignores future price changes:
| Over 20 years | Heat pump (heat pump tariff) | Heat pump (standard tariff) | Gas boiler | Oil boiler |
|---|---|---|---|---|
| Installation after grants | £4,000 | £4,000 | £3,000 | £4,000 |
| Replacement during period | None | None | £3,000 | £4,000 |
| Fuel (20 years) | £10,300 | £17,100 | £16,000 | £19,800 |
| Gas standing charge | None | None | £2,200 | None |
| Servicing | £3,000 | £3,000 | £2,000 | £3,000 |
| Total | £17,300 | £24,100 | £26,200 | £30,800 |
Assumes 12,000 kWh of heat a year, a heat pump SCOP of 3.5, gas at 6p, oil at 7p and electricity at 25p or a 15p heat pump tariff. Your own figures will differ, but the pattern holds for most homes: once the grant is applied, a heat pump is usually the cheapest heating system to own over its lifetime.
Paying for the remaining cost
- Interest-free loans in Scotland: Home Energy Scotland can lend towards the cost not covered by the grant.
- Installer finance: many installers offer monthly payment plans, sometimes at 0% APR. Check the total amount repayable.
- Green mortgages and further advances: some lenders offer better rates for energy efficiency improvements.
Government grants that reduce the cost
Several government grants can bring the price down. In England and Wales, the Boiler Upgrade Scheme gives £7,500. In Scotland, Home Energy Scotland offers up to £7,500 plus a £1,500 rural uplift. Wales also has the Nest scheme for lower-income households. All heat pumps fitted in homes benefit from 0% VAT until March 2027. Read our full guide to government grants for heat pumps.
Why heat pump quotes vary so much
It's common to receive quotes that differ by several thousand pounds for the same home. The main reasons are:
- Different unit sizes: one installer may round up to a larger heat pump than another. A proper heat loss calculation should settle this.
- Radiator plans: some quotes include upgrading every radiator; others replace only those that need it.
- Cylinder choice: a larger or premium cylinder can add several hundred pounds.
- What's included: check whether system flushing, making good, controls and old boiler removal are in the price.
- Brand and warranty: premium models and longer warranties cost more up front.
Ask every installer for the same information, the heat loss figure, unit size, expected SCOP, radiator changes and warranty, so you can compare like with like.
Worked example: a 3-bed semi
Here's how a typical quote might look for a three-bedroom semi-detached house in England switching from a gas combi boiler:
| Item | Cost |
|---|---|
| 7 kW air source heat pump | £4,200 |
| 200 litre hot water cylinder | £1,500 |
| Pipework, valves and controls | £1,300 |
| Three radiator upgrades | £1,200 |
| Labour, commissioning and MCS registration | £3,300 |
| Total | £11,500 |
| Boiler Upgrade Scheme grant | −£7,500 |
| You pay | £4,000 |
The same home in rural Scotland, qualifying for the Home Energy Scotland grant and rural uplift, would pay around £2,500, with the option of an interest-free loan for the rest.
Is now a good time to buy?
For most households, yes. The £7,500 grant, 0% VAT until March 2027 and a growing choice of heat pump tariffs make this one of the most affordable times to switch. Prices for the equipment itself have also stabilised as more installers have trained and competition has grown. If your boiler is more than ten years old, planning the switch now, rather than waiting for it to break down in winter, gives you time to compare quotes and arrange the grant.
Ways to cut the cost of a heat pump
- Claim the £7,500 grant. Only possible through an MCS-certified installer, which is who we work with. See if you qualify.
- Switch to a heat pump tariff with cheaper overnight or off-peak rates.
- Insulate first where it's cheap: loft top-ups and draught-proofing reduce the size of heat pump you need.
- Compare a fixed quote that's based on a proper heat loss survey, not a ballpark figure.
Sources
Grant amounts, VAT rules and eligibility are set by government and the scheme administrators. We check them against these primary sources:
- Apply for the Boiler Upgrade Scheme (GOV.UK)
- Boiler Upgrade Scheme (BUS) (Ofgem)
- VAT on energy-saving materials and heating equipment (VAT Notice 708/6) (GOV.UK)
- Home Energy Scotland grant and loan (Home Energy Scotland)
- Energy price cap and standing charges explained (Ofgem)
- Microgeneration Certification Scheme (MCS)
New to the jargon? See the heat pump glossary, or browse the heat pump FAQs.