As alternative ways of powering homes with green energy become more common, heat pumps have become a popular heating source around the UK. A report from the MCS Foundation found that nearly 40,000 heat pumps were installed in UK homes in 2023 alone.
While the increasing uptake of heat pumps is good news for the environment, substantial costs remain one of the key factors deterring some people from investing in them.
But how much do heat pumps actually cost? In this guide, we’ll cover all the key factors affecting the cost of heat pumps, including the different types of heat pumps, installation costs, and how much heat pumps can save you on your energy bills.
How much do air source heat pumps cost?
The average cost of buying an air source heat pump can vary based on the size and power of the heat pump, the size of your home, and the type of air source heat pump you’re buying. Air-to-air heat pumps, for example, can only be used for cooling and heating your home. Therefore, they tend to be nearer the lower end of the price range. It might be for this reason that air source heat pumps are the most common type of heat pump in UK homes, with 36,799 installed in 2023 – accounting for 94% of total heat pumps installed that year.
Air-to-water heat pumps, on the other hand, can also be linked to your central heating system to supply hot water to your home, resulting in a higher price on average.
A breakdown of the average cost of an air source heat pump by size, type, and household size
| Household size | Technology type | Heat pump size | Average cost |
|---|---|---|---|
| 1 bedroom | Air to air heat pump | 3kW | £2,400-£6,200 |
| 1 bedroom | Air to water heat pump | 8kW | £8,400-£11,150 |
| 2-3 bedrooms | Air to air heat pump | 4-5kW | £6,200-£8,400 |
| 2-3 bedrooms | Air to water heat pump | 13kW | £10,000-£12,000 |
| 4-5 bedrooms | Air to air heat pump | 10kW | £8,000+ |
| 4-5 bedrooms | Air to water heat pump | 16kW | £12,000 |
(Source: Green Match)
The average cost of a 3kW air to air heat pump designed for a one-bedroom house is between £2,400-£6,200. For an 8kW air to water pump in a one-bedroom house, this rises to between £8,400-£11,150 – more than triple (250%) the minimum average price.
The price difference is slightly less for 2-3 bedroom homes. A typical 4-5kW air to air pump designed for a 2-3 bedroom house costs from £6,200-£8,400. A 13kW air to water pump designed for a home the same size costs between £10,000-£12,000 on average – an increase of around three-fifths (61%) on the minimum average price.
For the typical 4-5 bedroom house, the average cost of installing a 10kW air to air pump is at least £8,000 compared to £12,000 for a 16kW air to water device – up 50%.
How much do ground source heat pumps cost?
As with air source heat pumps, the cost of buying a ground source heat pump will depend on the size and power of the pump. A 4kW heat pump designed for the typical two-bedroom home costs around £3,000, on average.
For an 8kW heat pump designed for the standard four-bedroom house, the average cost rises to between £6,000 and £7,000 – at least double the total of a 4kW pump.
A breakdown of the average cost of a ground source heat pump by size
| Heat pump size | Average cost (before installation) |
|---|---|
| 4kW | £3,000 |
| 8kW | £6,000-£7,000 |
| 12kW | £12,000 |
(Source: Green Central)
For larger houses requiring 12kW ground source heat pumps, the average cost climbs to £12,000 before installation. This is four times the average total of a 4kW heat pump and around double the amount of an 8kW pump.
What are the installation costs of air source heat pumps?
Installation costs make up a significant part of the overall price of a heat pump. For both air source and ground source pumps, the cost of installation will vary based on the size of your home, the size of the pump, and the time required for installation.
Air source heat pumps tend to be cheaper to install, with the average cost of installing in a two-bedroom semi-detached house between £3,500 and £4,500.
A breakdown of the average installation costs of air source heat pumps by house size
| Type of property | Duration | Installation cost (average) |
|---|---|---|
| Two-bedroom semi-detached | 2-3 days | £3,500 - £4,500 |
| Three-bedroom semi-detached | 3 days | £4,200 - £6,500 |
| Five-bedroom detached | 3-5 days | £6,000 or higher |
(Source: Green Match)
For a three-bedroom semi-detached house, the typical cost of installing an air source heat pump rises to between £4,200 and £6,000 – a 20% increase on the average minimum price for a two-bedroom, semi-detached house.
The typical cost of installing an air source heat pump in a five-bedroom detached house is at least £6,000. This represents a 42% increase in the minimum installation costs for a three-bedroom semi-detached house.
What are the installation costs of ground source heat pumps?
A report from Checkatrade found that the average cost of installing a ground source heat pump ranges between £18,000 and £50,000 – including the costs of purchasing the heat pump.
The overall cost of installation depends on an array of factors, including:
- The size of the pump
- The size and specifications of your home
- The level of groundwork and parts required
A ground source heat pump installed in horizontal trenches is usually cheaper, with groundwork costing around £7,500 on average. However, this type of installation requires more available land and is more common in rural areas.
Vertical ground source heat pumps are more common in areas where land is limited. This method requires boreholes to be dug deep into the ground to extract thermal energy from underground rocks. This is a considerably more expensive process, costing an average of £20,000 (based on three vertical boreholes).
How can I save money when buying a heat pump?
The boiler upgrade scheme is a government incentive designed to encourage the decarbonisation of homes and buildings in the UK.
Under the scheme, eligible homeowners will be entitled to a grant of up to £7,500 to fund the replacement of a fossil fuel heating system with renewable alternatives like heat pumps.
You can find out more about your eligibility for the boiler upgrade scheme on the Government website.
Did you know...
Did you know that over half (57%) of consumers surveyed in 2023 said they were willing to pay more for a house with renewable or low-carbon energy sources like solar panels, heat pumps or EV chargers?
Find out about all the latest news, views, and developments of residential green energy in our green home statistics page.
How much can heat pumps save me on my energy bills?
While initial installation costs can be high, the running costs of heat pumps can save you considerable money on your energy bills in the long term. The amount of money saved will depend on the type of heat pump being installed and the existing energy system being replaced.
In 2024, the Energy Saving Trust stated that customers can expect to save up to £50-£440 per year on heating bills by replacing an old gas boiler with a ground source heat pump.
The Energy Saving Trust also estimated that a customer could save an average of £240 per year from switching a G-rated gas boiler to an air source heat pump.
A breakdown of the average energy bill savings from switching various boiler types to an air source heat pump in a typical three-bedroom semi detached house
| Boiler type | Average annual saving |
|---|---|
| Gas boiler (A-rated) | -£20 |
| Gas boiler (G-rated) | £240 |
| Old oil boiler (A-Rated) | £65 |
| Old oil boiler (G-Rated) | £420 |
| Old LPG boiler (G-Rated) | £340 |
| Old LPG boiler (G-Rated) | £750 |
| Old electric storage heaters | £1,000 |
| New electric storage heaters | £600 |
(Source: Energy Saving Trust)
Savings are potentially even higher when switching from an LPG boilers, with the average savings of upgrading from a G-rated LPG boiler standing at £750. This is over triple the average savings of upgrading from a G-rated gas boiler.
The biggest savings could be found when upgrading from an old electric storage heater, with an average saving of £1,000. This was more than quadruple the average savings of upgrading from a a G-rated gas boiler.
FAQs
Should you turn your heat pump off at night?
No, heat pumps work to maintain the ideal temperature by cycling on and off as required. Therefore, there is no reason to turn your heat pump off at night or when you leave the house.
Are heat pumps worth buying?
Buying a heat pump comes with an array of cost and sustainability benefits. As a 100% green energy source, heat pumps provide an eco-friendly alternative to traditional gas based heating systems. Additionally, heat pumps can be more efficient than gas boilers at heating your home, resulting in reduced energy bills in the long run.
Do you need planning permission for a heat pump?
In most cases, installing a heat pump on domestic premises you own is considered a permitted development. Therefore, no planning permission is needed.
However, it may be worth checking with your local council or planning authority to ensure there are no specific requirements to consider before installing in your home.
