How Much Do Heat Pumps Cost?
If you’re thinking about switching to low-carbon heating, the first question on most people’s minds is often “how much does a heat pump actually cost?” Heat pump prices have come down considerably over the past few years, but a heat pump is still a significant investment. The price you’ll pay depends on:
- The size of your home
- The system you choose
- Whether yo’re eligible for a Govnerment grant or not
Here’s an honest breakdown of what to expect in 2026, along with an explanation of how the government grant can bring those numbers down. If you’re still getting to grips with the basics of heat pumps, it’s worth starting with our complete guide to heat pumps in the UK.
How Much Does a Heat Pump Cost in the UK?
There are two main types of heat pump, and the cost gap between them is worth noting.
- Air source heat pumps typically cost between £8,000 and £14,000 to install. They’re by far the most popular choice for UK homes because they’re cheaper, quicker to fit, and suit the majority of properties.
- Ground source heat pumps usually start at around £15,000 and can exceed £30,000, largely because of the excavation or borehole drilling involved. They’re more efficient over the long term, but tend to only make financial sense for larger homes with plenty of outdoor space.
For most homeowners in the UK, an air source heat pump offers the best balance of cost and performance, so the figures below will focus on this.
Heat Pump Costs by Home Size
The single biggest factor in your quote is the size of your property, as larger homes need higher-capacity systems. The table below gives a rough guide to typical air source costs before and after the Boiler Upgrade Scheme grant.
| Property type | System size | Cost before grant | Cost after £7,500 grant |
| 1 bedroom flat | 4–5 kW | £7,000–£9,000 | £0–£1,500 |
| 2 bedroom terraced house | 5–6 kW | £8,000–£10,000 | £500–£2,500 |
| 3 bedroom semi-detached | 7–8 kW | £10,000–£12,000 | £2,500–£4,500 |
| 4-5 bedroom detached | 11 kW+ | £12,000–£16,000 | £4,500–£8,500 |
These figures are a rough estimate based on the size of the average UK home. Every home is different, which is why a proper survey is the only way to get an accurate price. Contact us to arrange this.
What’s Included in the Cost?
A heat pump quote isn’t just the unit itself. A typical installation usually includes:
- The heat pump unit – £3,000-£7,000 depending on brand and output
- Installation and labour – £2,000-£4,000 for a standard fit
- A hot water cylinder – £500-£1,500 if you’re moving from a combi boiler
- Radiator upgrades – £1,000-£3,000 if your existing radiators are too small for the lower flow temperatures a heat pump runs at
- Electrical upgrades – £300-£800 if your consumer unit needs updating
It’s always worth checking exactly what a quote covers, and we’ll always make this clear within your quote. A lower headline price sometimes means key items have been left out.
Does Location Affect the Cost?
Yes, installation rates vary across the country. Installations in London and the South East tend to run 10-20% higher than the rest of the UK, while homes in the North and Midlands generally sit at the more affordable end.
That’s good news if you’re local to us. As a Manchester-based heat pump installer, we’re able to offer competitive North West pricing without the premium you’d often pay further south. Wherever you are in Greater Manchester, you’ll benefit from regional labour rates and access to a strong pool of certified engineers.
What Else Affects the Price?
A few other factors can nudge your quote up or down:
- Insulation levels – a well-insulated home needs a smaller, cheaper heat pump, so insulating first often pays for itself
- Installation complexity – difficult access or working at height can add to labour costs
- Your existing heating system – reusing existing pipework keeps costs lower than starting from scratch
How the Boiler Upgade Scheme Grant Brings Costs Down
The good news is you almost certainly won’t pay the full price. The Boiler Upgrade Scheme offers £7,500 towards an air source or ground source heat pump in England and Wales, and it’s deducted directly from your quote, so you don’t have to claim it yourself.
On top of that, heat pumps currently benefit from 0% VAT until March 2027, reducing your upfront cost even further. Combined, these can bring a typical installation down to a price comparable with a new gas boiler.
Get a Tailored Quote from AddHeat
The only way to know exactly what your project will cost is a professional assessment. At AddHeat, we’ll survey your home, confirm your grant eligibility, and give you a clear, no-surprises quote. Learn more about our heat pump installation service, or get in touch for a no-obligation quote today.