Heat pump pricing 2026

Heat Pump Cost UK 2026

An air source heat pump (ASHP) costs £8,000–£17,000 fitted in the UK in 2026, or just £500–£9,500 after the £7,500 Boiler Upgrade Scheme (BUS) grant. Ground source runs higher at £18,000–£30,000. Here's the full honest breakdown — we install both.

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What you pay

Price ranges

Specification Price range
6–8 kW ASHP (2–3 bed home, BUS-eligible) £8,000 – £11,000 gross · £500 – £3,500 after BUS
9–12 kW ASHP (3–5 bed home) £12,000 – £17,000 gross · £4,500 – £9,500 after BUS
14–16 kW ASHP (large detached / farmhouse) £16,000 – £22,000 gross · £8,500 – £14,500 after BUS
Ground source heat pump (typical home) £18,000 – £30,000 · £10,500 – £22,500 after BUS
Hybrid heat pump (ASHP + existing boiler) £4,500 – £8,000
Where the money goes

Cost breakdown

Component % of cost
Heat pump unit (ASHP) 40%
Hot water cylinder (if replacing) 8%
Radiator upgrades 10%
Ground loop / borehole (GSHP only) 30%
Scaffolding + installation labour 15%
DNO + MCS + BUS paperwork 5%
Margin + overheads 12%
What changes the price

Variables

  • Radiator sizing +£500 to +£3,000 — most homes pre-2010 need at least some radiator upsizing
  • Hot water cylinder +£600 to +£1,200 if existing cylinder incompatible
  • Underfloor heating upgrade +£4,000 to +£12,000 for full UFH install — reduces payback by 2–3 years
  • EPC rating of property Heat pumps are most efficient in well-insulated homes (EPC C+). Poor insulation = higher running cost
  • Ground loop type (GSHP) Horizontal slinky needs 500 m² of land; borehole needs only 6 m²
  • Hybrid vs standalone Hybrid is cheaper upfront (£4k–£8k) and ideal for homes that need backup
Return on investment

Payback model

Annual savings and payback by tariff combination. Modelled against typical UK consumption profile.

Setup Annual saving Payback
ASHP replacing gas boiler, Octopus Cosy tariff £800–£1,200/year 8–12 years post-grant
ASHP replacing oil boiler (rural), Cosy tariff £1,200–£2,000/year 5–8 years post-grant
GSHP + UFH in new insulated property £1,500–£2,500/year 8–12 years post-grant
ASHP + solar panels combo £1,800–£2,800/year 6–9 years (solar + BUS combined)
Common questions

FAQs

Is the £7,500 BUS grant still available in 2026?
Yes — the Boiler Upgrade Scheme (BUS) pays £7,500 toward an air source or ground source heat pump in England and Wales. We pre-deduct the grant; you pay the post-grant figure. We handle all the Ofgem paperwork.
What size heat pump do I need?
Typically 9 kW for a 3-bed semi, 12 kW for a 4-bed detached, 14–16 kW for large detached or Victorian properties with high ceilings. We run a heat loss calculation (MCS standard) to size exactly right.
Are heat pumps expensive to run?
Not if sized correctly and on the right tariff. A 9 kW ASHP on Octopus Cosy costs approximately £810–£1,100/year to run in Greater Manchester. A gas boiler equivalent costs £1,400–£1,800/year. Running costs improve significantly with solar panels supplying daytime heat.
How long does heat pump installation take?
ASHP installation takes 3–5 days (unit + pipework + hot water cylinder + electrical). Add 1–2 weeks for radiator upgrades if needed. GSHP including ground loop is 5–10 days. Total from survey to commissioning is 6–10 weeks.
Can I get a heat pump in a flat or terraced house?
Yes to terraced. The ASHP unit goes on an outside wall or in a side access. Flats are possible with landlord permission but less common. We've fitted ASHPs on terraces, semis, detached, and cottages.
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