Heat Pump Cost UK 2025

Installing an air source heat pump in the UK can cost from around £3,000 upwards, with potential reductions available through government grants in 2025. Understanding these costs, possible home upgrades, and available schemes can help you plan effectively to improve home heating efficiency and reduce bills.

Heat Pump Cost UK 2025 Image by Global Energy Systems from Pixabay

Understanding Air Source Heat Pump Costs in 2025

Factors that Affect the Cost

System Type:
Air-to-air heat pumps generally cost around £3,000 for supply and installation. These systems heat the air inside your home but do not provide hot water, so a separate hot water system is needed.
Air-to-water heat pumps provide heating for radiators and hot water systems and tend to be more expensive, with costs reaching up to £15,000 or more.
Property Size and Insulation:Larger homes usually need more powerful units, which may increase installation costs. Homes with good insulation can utilize smaller systems that are generally cheaper both to install and operate. Properties with poor insulation might require cavity wall and loft insulation upgrades, which can cost between approximately £650 and £4,600.
Installation Complexity:Older buildings might need upgrades to the heating pipework or radiators to work efficiently with heat pumps, which operate at lower temperatures (35-55°C) than traditional boilers (70-80°C). Replacing around 10 radiators may add roughly £3,000 to the project.
Additional Components:Installing optional underfloor heating, often recommended alongside air-to-water heat pumps, can increase initial costs but may also improve system efficiency.

Government Grant Support to Help Reduce Installation Costs

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is a government grant available to homeowners in England and Wales, offering financial support for heat pump installations:

Provides funding up to £7,500 towards the cost of installing air or ground source heat pumps, potentially lowering upfront costs.
Supports replacement of existing fossil fuel heating systems but generally excludes new builds (except some qualifying self-builds) and social housing previously supported by government schemes.
Applications are made through an MCS-certified installer appointed by the homeowner.
The scheme is funded until the end of 2027, with a budget of £205 million as of early 2025.

ECO4 Scheme

The ECO4 scheme targets low-income households in England, Scotland, and Wales:

Offers free or subsidized heat pump installations and energy efficiency improvements based on income and benefits status.
Funding is managed by obligated energy suppliers.
Applicants complete a telephone assessment followed by a no-cost home survey.

Warm Homes Local Grant (England, starting 2025)

Launching in April 2025, this scheme provides up to £30,000 per household for:

Up to £15,000 on energy efficiency improvements such as insulation and draught proofing.
Up to £15,000 on low-carbon heating systems including heat pumps.

It is designed for low-income, privately owned or rented homes with lower EPC ratings (D to G). The grant covers full costs for homeowners and tenants; landlords contribute 50% of costs.

Schemes in Scotland and Wales

Warmer Homes Scotland offers support and interest-free loans to low-income households for heat pumps and energy upgrades, often covering full costs.
Nest (Wales) assists low-income households with energy-saving improvements, including heat pump installations, subject to income and benefit eligibility.

Eligibility and Application Considerations

Installer Certification: Eligibility for most grants requires installation by an MCS (Microgeneration Certification Scheme)-certified professional.
Home Requirements: The BUS scheme is designed for replacing existing fossil fuel heating systems; newer builds are generally excluded. Insulation requirements for grant eligibility have been adjusted to encourage wider adoption.
Application Process: Typically managed by the installer, with Ofgem verifying applications and potentially inspecting properties.
Income and Property Standards: Schemes such as ECO4, Warm Homes, Warmer Homes Scotland, and Nest have specific income brackets or property energy performance standards to qualify.

Running, Maintenance Costs, and Potential Savings Over Time

Running Costs: Servicing an air source heat pump usually costs between £150 and £300 annually. The system’s efficiency, measured by its Coefficient of Performance (COP), often ranges from 3.0 to 5.0, meaning the heat pump can produce 3 to 5 units of heat for every unit of electricity consumed. Proper insulation and correctly sized radiators can help manage running expenses.
Maintenance: Regular maintenance including cleaning filters and annual professional servicing can extend the operational life of heat pumps, which typically last 15-20 years.
Potential Long-Term Savings: While upfront costs can be higher than traditional boilers, heat pumps may help reduce energy bills over time. Some estimates suggest savings relative to gas boilers due to lower fuel consumption and price stability amid fossil fuel market fluctuations.

Factors to Consider Before Installation

Energy Efficiency Upgrades: Budgeting for insulation improvements may enhance system performance and help meet grant requirements.
Heating System Compatibility: Ensure existing radiators and pipework can accommodate heat pumps; upgrades or underfloor heating may be necessary.
Outdoor Space Requirements: Heat pumps need sufficient exterior space with good airflow; shaded or enclosed areas can impact performance.
Backup Heating Options: Additional heating sources might be needed during very cold weather, especially in larger or older homes.

Summary

In 2025, the installation costs for air source heat pumps in the UK range from approximately £3,000 to £15,000, influenced by system type, property size, and installation requirements. Government support through schemes such as the Boiler Upgrade Scheme can reduce these costs by up to £7,500, with additional grants assisting qualifying low-income households.

Costs and potential savings will vary based on individual property circumstances and system specifications. Homeowners interested in heat pumps are encouraged to consult MCS-certified installers who can assist with grant applications and provide guidance on suitable home improvements. Careful planning can help maximize the benefits of heat pump technology for energy-efficient and environmentally friendly home heating.

Sources

Disclaimer: All content, including text, graphics, images and information, contained on or available through this web site is for general information purposes only. The information and materials contained in these pages and the terms, conditions and descriptions that appear, are subject to change without notice.

Finance