Heat pumps UK.
Costs, grants, and honest advice for 2026.
Everything you need to know about air source heat pumps before you commit. What they cost, the £7,500 Boiler Upgrade Scheme grant, running costs, noise levels, whether they work with your radiators, and when they genuinely make financial sense.
A heat pump extracts warmth from outside air or the ground and uses it to heat your home, achieving 2 to 4 units of heat for every unit of electricity consumed. Air source heat pump installation costs £8,000 to £15,000. After the Boiler Upgrade Scheme grant of £7,500, most installations cost £2,000 to £8,000. Heat pumps work best in well-insulated homes and are most financially compelling when replacing expensive oil or electric heating rather than modern gas. This guide gives you the honest picture rather than a sales pitch.
The Boiler Upgrade Scheme (BUS) provides £7,500 off the cost of an air source or ground source heat pump installation for eligible homes in England and Wales. The grant is applied directly by your MCS-accredited installer, so you pay the reduced amount. Eligibility requires a valid EPC with no outstanding recommendations for loft or cavity wall insulation. This is the main heat pump grant in the UK and significantly improves the financial case for most installations. A free air source heat pump is also available to some households through the ECO4 scheme for those on qualifying benefits.
What is a heat pump and how do heat pumps work?
A heat pump does not generate heat from burning fuel. Instead it moves heat from one place to another, using the same refrigeration principle as your fridge but in reverse. An air source heat pump extracts heat energy from outside air even when temperatures are well below freezing and transfers it into your home heating system. For every unit of electricity it uses, it delivers 2 to 4 units of heat. That ratio is called the Coefficient of Performance (COP).
Heat extracted from outside air
The outdoor unit draws in outside air across a refrigerant-filled heat exchanger. Even at temperatures as low as minus 15 degrees, there is enough heat energy in the air to warm the refrigerant fluid. This is the fundamental principle that makes heat pumps so much more efficient than electric resistance heating.
Refrigerant compressed to raise temperature
The warmed refrigerant passes through a compressor which raises its pressure and temperature significantly. This is the step that uses electricity and is where the heat pump's efficiency is determined. Modern compressors using inverter technology adjust their speed continuously to match your heating demand rather than running at full power constantly.
Heat transferred to your home heating system
The hot refrigerant passes through a second heat exchanger which transfers its heat to your home's water circuit, warming your radiators or underfloor heating and your hot water cylinder. The refrigerant then cools, expands, and the cycle repeats. The entire process is continuous, quiet, and produces no combustion emissions at the point of use.
Air source vs ground source heat pump: which is right for you?
The two main types of heat pump available for UK homes are air source and ground source. Both are eligible for the Boiler Upgrade Scheme grant. Here is how they compare.
Air source heat pump
Extracts heat from outside air via an outdoor unit about the size of an air conditioning unit. Suitable for most properties with outdoor space. Installation is relatively quick, typically two to three days. Efficiency varies more with outside temperature than ground source but modern units perform well even in cold UK winters. The right choice for the vast majority of UK homes considering a heat pump. Air source heat pump installers near me are widely available across the UK.
Ground source heat pump
Extracts heat from the ground via pipes buried horizontally across your garden or vertically drilled boreholes. More consistent efficiency year-round as ground temperature stays relatively stable. Higher installation cost due to the groundworks. Ground source heat pump cost is significantly higher than air source but running costs are marginally lower. Best suited to rural properties with substantial outdoor space or those with very high heating demands. Ground source heat pump installation requires specialist groundwork contractors.
For most UK homeowners, an air source heat pump is the practical choice. The air source vs ground source heat pump decision usually comes down to available garden space and budget. Ground source delivers slightly better efficiency but the additional cost rarely justifies itself over a reasonable timeframe for typical residential use.
How much does an air source heat pump cost in the UK?
Air source heat pump cost varies by the size of unit needed, your home's heating system setup, and how much work is required to integrate the heat pump with your existing pipework and radiators. Here are realistic installed costs before and after the Boiler Upgrade Scheme grant.
| Property type | System size | Installed cost | After £7,500 BUS grant |
|---|---|---|---|
| Small home (2 bed) | 5 to 7kW | £8,000 to £11,000 | £500 to £3,500 |
| Average home (3 to 4 bed) | 8 to 12kW | £10,000 to £14,000 | £2,500 to £6,500 |
| Large home (5 bed+) | 12 to 16kW | £13,000 to £18,000 | £5,500 to £10,500 |
| Ground source heat pump | 8 to 16kW | £20,000 to £35,000 | £12,500 to £27,500 |
Heat pump installation cost can increase significantly if your home needs additional work such as radiator upgrades, a new hot water cylinder, improved insulation, or significant changes to the existing pipework layout. A good installer will survey your home and provide a detailed quote that itemises these additional costs clearly. Always get at least two or three quotes from different local air source heat pump installers before committing.
Are heat pumps worth it in the UK?
This is the most searched question about heat pumps and the answer is genuinely more nuanced than most heat pump content admits. Here is the honest version.
Heat pumps are worth it when you are replacing expensive oil, LPG, or electric resistance heating. Oil and LPG prices are volatile and consistently high, and replacing them with a heat pump at a COP of 3 delivers significant running cost savings even at current electricity prices. They also make strong financial sense for well-insulated homes where the heat pump can run at low flow temperatures efficiently, for homes with solar panels that can provide cheap or free electricity to run the heat pump, and for any home where the £7,500 BUS grant brings the upfront cost down to a level with a reasonable payback period.
If you currently have a modern efficient gas boiler and your home is reasonably well insulated, the running cost saving from switching to a heat pump at current UK electricity and gas prices is modest and the payback period is long. Gas is still significantly cheaper per unit of energy than electricity in the UK, and a heat pump needs to achieve a COP of around 3.5 or above just to match a modern gas boiler on running costs. It can and often does achieve this, but in a poorly insulated home requiring high flow temperatures, it may not. The honest position is that heat pumps are not a universal financial win over gas heating right now in the UK, but they are the right long-term direction as the electricity grid decarbonises and gas prices rise.
Air source heat pump pros and cons
Advantages of air source heat pumps
- 2 to 4 units of heat per unit of electricity, far more efficient than direct electric heating
- £7,500 Boiler Upgrade Scheme grant significantly reduces upfront cost for eligible homes
- No combustion, no carbon monoxide risk, no gas supply required
- Can provide cooling in summer in some configurations, particularly air to air systems
- 20-year lifespan versus 10 to 15 years for a typical boiler
- Pairs well with solar panels and battery storage for very low running costs
Disadvantages of heat pumps
- High upfront cost even after the grant, particularly compared to a boiler replacement
- Running costs versus gas boilers are modest in poorly insulated homes at current electricity prices
- May require radiator upgrades or underfloor heating to distribute heat effectively at lower flow temperatures
- Outdoor unit produces noise, roughly equivalent to a quiet conversation at one metre
- Performance and running costs depend heavily on home insulation quality
- Not suitable for all property types, particularly flats with no outdoor space
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Get a free quoteHeat pump running costs: what does it actually cost to run?
Heat pump running costs depend on three variables: the COP of your heat pump, the price you pay for electricity, and how well insulated your home is. Here is how the maths works in practice.
A typical UK home uses around 12,000 to 15,000 kWh of heat per year. A heat pump with a COP of 3 needs around 4,000 to 5,000 kWh of electricity to produce that heat. At the current average UK electricity rate of around 28p per kWh, that is roughly £1,120 to £1,400 per year. Compared to gas at around 6.5p per kWh with a 90% efficient boiler consuming around 14,000 kWh of gas, that gives an annual gas bill of around £1,000. So at current prices the running cost advantage over gas is modest for an average home.
The calculation shifts significantly if you are replacing oil or LPG heating, where fuel costs are typically 8 to 10p per kWh. Replacing oil with a heat pump at COP 3 halves your fuel bill in most cases. It also shifts if you have solar panels providing free or cheap electricity during daylight hours, or if you are on a heat pump-specific electricity tariff with cheaper rates.
How much electricity does a heat pump use? For a typical home, expect 4,000 to 6,000 kWh of electricity per year for space heating and hot water combined. A smart heat pump on a time-of-use tariff can shift much of this consumption to cheaper overnight hours, significantly reducing the annual electricity cost.
Are heat pumps noisy?
Heat pump noise is one of the most searched questions about air source heat pumps and the concern is legitimate. An outdoor heat pump unit produces sound. The question is whether that sound is a problem in practice.
Modern air source heat pumps produce around 40 to 50 decibels at one metre distance. For context, a normal conversation is around 60 decibels and a refrigerator hum is around 40 decibels. At five metres the sound drops to around 30 to 35 decibels, barely perceptible above ambient background noise. Are air source heat pumps noisy enough to bother you or your neighbours? For most installations positioned thoughtfully away from bedrooms and boundary walls, no. Heat pump noise does become a consideration if the only available position for the outdoor unit is directly outside a bedroom window or immediately adjacent to a neighbour's garden.
UK planning rules require heat pump units to be positioned at least one metre from a property boundary and limit permitted sound levels. Your installer will assess whether your proposed installation position meets these requirements. If noise is a specific concern, ask for the manufacturer's sound data sheet for the unit being recommended and compare it with others.
Do heat pumps work with radiators?
Heat pumps work with radiators, but with an important technical nuance that affects whether your existing radiators are adequate or need replacing.
A gas boiler typically heats water to 70 to 80 degrees and circulates it through radiators. A heat pump works most efficiently at lower flow temperatures, typically 35 to 55 degrees. At lower temperatures, a radiator delivers less heat output. A radiator sized for 80-degree water from a gas boiler may only be 40 to 60% as effective at 45-degree heat pump flow temperatures.
This means your existing radiators may or may not be adequate for a heat pump installation. An oversized existing radiator system, which is common in older homes where radiators were sized generously, often works fine with a heat pump at lower flow temperatures. An undersized system will need radiator upgrades, typically to larger low-temperature radiators or to underfloor heating.
Air source heat pump underfloor heating is the ideal combination. Underfloor heating runs happily at 35 to 40 degrees, covers a large surface area for excellent heat distribution, and works perfectly with the efficiency sweet spot of a modern heat pump. If you are renovating and have the option of installing underfloor heating alongside a heat pump, it is the best technical combination available. Radiators for heat pumps are a workable alternative and the right choice for retrofit installations where underfloor heating is not practical.
Do heat pumps work in cold weather?
Yes. Modern air source heat pumps work effectively at temperatures well below freezing, down to minus 20 degrees in most modern units. UK winters rarely approach the temperature limits of a well-specified heat pump.
What does change in cold weather is efficiency. A heat pump that achieves a COP of 3.5 at 7 degrees outside will operate at around COP 2 to 2.5 at minus 5 degrees. It is still producing more heat than the electricity it consumes, but the advantage over direct electric heating narrows. For the coldest days of a UK winter, a heat pump will typically be running harder and at lower efficiency than during mild weather, but it will continue to heat your home without supplementary heating in the vast majority of UK properties.
How do heat pumps work in winter specifically? The outdoor unit uses defrost cycles to prevent ice formation on the heat exchanger when outdoor humidity is high and temperatures are near freezing. During a defrost cycle the unit briefly pauses heat delivery to clear the ice, using a small amount of extra energy. Modern units manage this automatically and efficiently. You may notice your heat pump making slightly different sounds during defrost cycles on cold damp days, which is normal.
Heat pump and solar panels: the most powerful combination
Combining a heat pump with solar panels is one of the most effective home energy upgrades available in the UK. Solar panels generate electricity during daylight hours which is used directly to run the heat pump, reducing or eliminating the electricity cost of heating your home during the day.
An air source heat pump with solar panels works particularly well because heat pumps run most efficiently at lower temperatures, which in the UK means spring and autumn are the periods of highest demand relative to available solar generation. In these shoulder seasons, solar generation and heat pump running overlap well. In winter when heating demand peaks, solar generation is lower but the heat pump can be scheduled to run on cheap overnight tariff electricity and store heat in a well-insulated cylinder or the thermal mass of the building.
Adding battery storage to a solar and heat pump system allows surplus solar electricity to be stored and used to run the heat pump in the evening rather than drawing from the grid. This combination, solar panels plus battery storage plus heat pump, represents the most energy-independent home setup available to UK homeowners and is eligible for multiple grant and incentive schemes simultaneously.
See our solar panels guide and battery storage guide for full details on costs and grants for each component.
Heat pump tariffs UK: which electricity tariff works best?
The electricity tariff you choose makes a significant difference to heat pump running costs. Standard variable tariffs charge the same rate at all times of day. Heat pump-specific tariffs and time-of-use tariffs offer cheaper overnight or off-peak rates that significantly reduce the cost of running a heat pump.
The best heat pump tariffs uk in 2026 offer overnight rates as low as 7 to 10p per kWh compared to standard rates of 25 to 30p. A heat pump using 5,000 kWh of electricity per year, shifted predominantly to off-peak hours, saves £750 to £1,000 per year compared to running on a standard tariff. This tariff benefit often makes a bigger difference to annual running costs than the choice between individual heat pump brands.
Your installer will advise on which tariffs are compatible with the specific heat pump model they recommend. Some heat pumps integrate directly with smart tariff systems to automatically schedule operation around the cheapest electricity hours. Ask about this capability when comparing quotes, particularly if you are on or considering a dynamic electricity tariff.
Heat pump service and maintenance
Heat pumps require less maintenance than gas boilers. There is no annual gas safety check, no combustion to manage, and no flue to inspect. However they do benefit from regular servicing to maintain efficiency and manufacturer warranty compliance.
Annual service recommended
Most manufacturers recommend an annual air source heat pump service to maintain performance, check refrigerant levels, clean the outdoor unit coil, and verify that all components are operating within specification.
Air source heat pump service cost
A typical heat pump service costs £100 to £200 per year depending on your location and the complexity of your system. Heat pump service plans from installers or manufacturers typically cost £10 to £20 per month and include one annual service and priority call-out.
DIY maintenance tasks
Keep the outdoor unit clear of leaves, debris, and vegetation. Ensure the heat pump cover or housing does not restrict airflow. Check filter cleanliness if your system has one. Reset any error codes using the manual before calling an engineer.
20-year lifespan
A well-maintained heat pump typically lasts 20 years, significantly longer than a gas boiler. The compressor is the most likely component to need replacement over the system's life, typically after 15 or more years. Keep your service records as these support warranty claims.
Questions people ask about heat pumps
For homes replacing oil, LPG, or electric storage heating, yes. The running cost saving is significant and the BUS grant makes the upfront cost manageable. For homes with modern gas boilers and poor insulation, the financial case is weaker at current electricity prices. Heat pumps are most worth it for well-insulated homes, homes with solar panels, or homes currently on expensive fuel types. Are heat pumps worth it uk overall? Yes for the right home, with caveats.
Air source heat pump installation costs £8,000 to £15,000 for most UK homes. After the £7,500 Boiler Upgrade Scheme grant, most households pay £500 to £7,500 net. Ground source heat pump cost is higher at £20,000 to £35,000 before grant. Get at least two quotes from local air source heat pump installers before committing.
The Boiler Upgrade Scheme (BUS) grant provides £7,500 off an air source or ground source heat pump installation for eligible homes in England and Wales. To be eligible your property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. The grant is applied directly by your MCS-accredited installer. Free air source heat pumps are also available through the ECO4 scheme for qualifying low-income households.
Modern air source heat pumps produce around 40 to 50 decibels at one metre, similar to a refrigerator hum. At five metres this drops to around 30 to 35 decibels. For most well-positioned installations they are not problematic. Heat pump noise can be a consideration if the only available position is immediately adjacent to a bedroom window or a neighbour's garden. Always check the manufacturer's sound data for the specific unit being quoted.
Yes, but heat pumps run at lower flow temperatures than gas boilers so existing radiators may need upgrading to larger versions to deliver enough heat output. Many older homes with generously-sized radiators work fine. Your installer will assess whether your existing radiators are adequate. Underfloor heating is the ideal combination with a heat pump as it works perfectly at low flow temperatures.
Yes. Modern air source heat pumps work down to around minus 20 degrees. Efficiency reduces in very cold weather but they continue to heat your home throughout UK winters without supplementary heating in most cases. You may notice defrost cycles on cold damp days where the unit briefly pauses, which is normal operation.
The main disadvantages of heat pumps are high upfront cost even after the grant, modest running cost savings over gas at current electricity prices, potential need to upgrade radiators or insulation, outdoor unit noise, and dependence on electricity grid pricing. They are also not suitable for all properties, particularly flats without outdoor space. The financial case is strongest for homes replacing oil or LPG and weakest for modern gas-heated, poorly-insulated homes.
At current UK energy prices with electricity at roughly 28p per kWh and gas at 6.5p per kWh, a heat pump at COP 3 costs roughly the same to run as a modern 90% efficient gas boiler. A heat pump at COP 3.5 or above is cheaper. In practice, COP varies with outside temperature and home insulation, so the heat pump vs boiler running cost comparison depends on your specific home and system. On a heat pump-specific electricity tariff with cheap overnight rates, the heat pump vs gas boiler running cost comparison shifts clearly in the heat pump's favour.
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