Blog  ·  3 min read  ·  23 October 2026

Heat pump installation cost: a full UK breakdown

What goes into the cost of a heat pump and installation, line by line, and how the £7,500 grant changes the final bill.

Heat pump installation cost: a full UK breakdown

The total heat pump installation cost in the UK is usually £8,000 to £16,000 including the unit, cylinder and labour. With the £7,500 Boiler Upgrade Scheme grant taken off, most households pay £1,500 to £8,000. Here's where the money goes.

Typical cost breakdown (3-bed semi)

ItemTypical cost
Air source heat pump unit (7 kW)£3,500 to £5,000
Hot water cylinder (200 litres)£1,200 to £1,800
Pipework, valves, buffer/volumiser£700 to £1,200
Radiator upgrades (2 to 4 rooms)£600 to £2,000
Controls and thermostat£200 to £500
Electrical work£300 to £600
Labour, commissioning, MCS registration£2,500 to £3,500
Total before grant£9,000 to £14,600
Boiler Upgrade Scheme−£7,500
You pay£1,500 to £7,100

All figures include 0% VAT. Your installer's fixed quote will itemise these after a survey.

What pushes the installation cost up

  • High heat loss: older, larger or poorly insulated homes need a bigger unit.
  • Many radiator upgrades: each replacement adds £250 to £600.
  • No space for a cylinder: relocating airing cupboards or using slimline cylinders adds cost.
  • Long pipe runs or awkward siting: more labour and materials.
  • Oil tank removal: typically a few hundred pounds when switching from oil.

What keeps it down

  • A well-insulated home with radiators that are already a good size.
  • An existing hot water cylinder location.
  • A short, simple route from the outdoor unit to the cylinder.

Installation cost by house size

For prices by property type, from 1-bed flats to 5-bed detached homes, see our air source heat pump cost guide. For what happens on the day, read what to expect from an installation.

Tip: compare quotes on the same basis. Ask each installer for the heat loss figure, the unit size, the expected SCOP and a list of radiator changes, not just the total price.

Sources

Grant amounts, VAT rules and eligibility are set by government and the scheme administrators. We check them against these primary sources:

New to the jargon? See the heat pump glossary, or browse the heat pump FAQs.

Written by the GetASHP team. Prices and grant details checked 23 October 2026; always confirm current figures with your installer.

Questions

The things people ask us first

If yours isn't here, ask on the form and an adviser will answer it on the call.

How much does an air source heat pump cost?
A typical installed air source heat pump costs £8,000 to £16,000 before the grant, depending on the size of your home and whether radiators or a hot water cylinder need replacing. After the £7,500 BUS grant, most homes pay between £1,500 and £8,000.
Why are heat pump installation costs so varied?
Because every home's heat loss is different. A small, well-insulated flat might need a 5 kW unit and no radiator changes; a large older house may need a 14 kW unit, a bigger cylinder and several new radiators.
Will I need new radiators?
Not always. Heat pumps run at lower flow temperatures than boilers, so some radiators may need to be upsized to keep each room warm. Your installer works this out with a room-by-room heat loss calculation and includes any changes in your quote.
Is there VAT on heat pumps?
No. Heat pumps installed in homes in Great Britain are zero-rated for VAT until 31 March 2027, which is already reflected in the prices you'll be quoted.
Get started

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