For most UK homes, an air source heat pump is worth it, particularly now the £7,500 Boiler Upgrade Scheme grant and 0% VAT have brought the upfront cost close to that of a new boiler. Whether it's right for your home depends on your current fuel, your home's heat loss and how the system is designed.
The pros of an air source heat pump
- £7,500 grant takes a big chunk off the price.
- 300 to 400% efficient, so you buy much less energy.
- Lower bills for homes on oil, LPG or electric heating, and often on gas with a heat pump tariff.
- Around 70% lower heating emissions than gas, falling further as the grid decarbonises.
- Long life of around 20 years and low maintenance.
- Safe: no combustion, no flue, no carbon monoxide.
- Future-proof: works with solar panels, batteries and smart tariffs.
The cons
- Higher upfront cost than a boiler before the grant.
- Space needed for an outdoor unit and hot water cylinder.
- Radiator upgrades may be needed in some rooms.
- Running costs depend on design and tariff: a poor install can be expensive to run.
Who benefits most from a heat pump?
- Off-gas homes on oil, LPG or electric storage heaters.
- Homes with an old boiler due for replacement anyway.
- Reasonably insulated homes with space for a cylinder.
- Homes with solar panels, which can power the heat pump directly.
Payback
Against oil, LPG or electric heating, the combination of the grant and lower running costs often means a heat pump pays back its extra cost within a few years. Against gas, the case rests more on the grant, a heat pump tariff and the longer lifespan. Your installer can give you an estimate based on your actual heat demand.
When a heat pump may not suit
A heat pump may not be the best fit if there's nowhere to site the outdoor unit, no possible space for a cylinder, or if the property is very poorly insulated and can't be improved. A survey will tell you, and it's free.
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)
- Energy price cap and standing charges explained (Ofgem)
- Heat pumps: planning permission (Planning Portal)
- Microgeneration Certification Scheme (MCS)
New to the jargon? See the heat pump glossary, or browse the heat pump FAQs.