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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