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)
| Item | Typical 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:
- Apply for the Boiler Upgrade Scheme (GOV.UK)
- VAT on energy-saving materials and heating equipment (VAT Notice 708/6) (GOV.UK)
- Find an MCS certified installer (MCS)
- Renewable Energy Consumer Code (RECC)
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.


