Air source heat pumps. Love them or roll your eyes at them, they’re here to stay - and they’re firmly on the UK government’s naughty-or-nice list as we march toward net zero.
With grants now sitting at £7,500 in England and Wales, more homeowners are asking the same thing - is now the time to ditch the boiler and get a heat pump?
Fair question.
Because while the idea of pulling heat out of the air sounds suspiciously like wizardry, the bill is still very real.
The short version? A typical air source heat pump installation in the UK usually costs around £7,000 to £13,000, depending on the size of your home, the system you choose, and how much extra work is needed. In England and Wales, the Boiler Upgrade Scheme can knock £7,500 off that cost if you’re eligible, and your MCS-certified installer applies for it on your behalf.
Running costs are where things get a bit less headline-friendly. Electricity is still more expensive per kWh than gas, but heat pumps are far more efficient.
Using Ofgem’s average Direct Debit rates for April to June 2026 - 24.67p/kWh for electricity and 5.74p/kWh for gas - a well-designed heat pump can land surprisingly close to gas boiler running costs in the right home.
So, are heat pumps worth it in 2026?
For some homes, absolutely. For others, not yet.
Let’s get into it properly.
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🔑 Key takeaways:
Typical air source heat pump install - £7,000 to £13,000
Boiler Upgrade Scheme - £7,500 off in England and Wales for eligible air source and ground source heat pumps
Installer requirement - your installer must be MCS certified
Hybrid systems - not eligible for the Boiler Upgrade Scheme
Typical lifespan - around 15 to 20 years
Running costs can be similar to gas in efficient homes, but poor insulation can wreck the maths
Best results - homes with decent insulation and properly sized emitters usually do better
We fit and install gas boilers and heat pumps nationwide, get your quote here.
Heat pump costs in the UK at a glance
Home type | Typical installed cost | Typical cost after £7,500 BUS grant | Best fit |
1–2 bed flat / small terrace | £7,000–£9,000 | £0–£1,500 | Smaller, reasonably efficient homes |
3 bed semi | £8,000–£11,000 | £500–£3,500 | Typical family homes |
4+ bed detached | £10,000–£13,000 | £2,500–£5,500 | Larger homes with higher heat demand |
Guide prices only. Actual costs vary based on heat loss, cylinder requirements, radiator upgrades, pipework changes, electrical work, and brand/spec.
That “after grant” figure is the bit getting people’s attention - and fair enough. It’s a lot easier to warm to a heat pump when the government is stumping up a big chunk of the bill.
How much does a heat pump really cost?
When people say a heat pump costs £7,000 to £13,000, they’re talking about the full install, not just the shiny box outside.
That figure usually includes the heat pump itself, labour, commissioning, controls, and whatever supporting work is needed to make the system actually function in a real UK house.
In some homes, it’s a relatively clean swap.
In others, it turns into a bit of a project.
That’s because a heat pump system often involves more than just replacing the old boiler. You may also need:
a hot water cylinder if you currently have a combi boiler,
larger radiators or emitter upgrades,
pipework alterations,
and sometimes electrical work too. Heat pumps work best at lower flow temperatures, so a system designed around a gas boiler does not always translate neatly.
What affects installation costs?
Here’s where the “it depends” bit earns its keep.
Moving from a combi boiler | Usually adds cost because you’ll typically need a hot water cylinder |
Poor insulation | Can increase running costs and may mean a larger system is needed |
Small or older radiators | May need upgrading to work well at lower flow temperatures |
Larger home / higher heat demand | Usually means a bigger, more expensive heat pump |
Pipework or layout complexity | More labour, more materials, more money |
Electrical upgrades | Can add to the install bill |
If your home leaks heat like a sieve, the heat pump won’t magically fix that. It will just work harder, cost more to run, and give the “heat pumps are rubbish” crowd another day out.
Heat pump running costs: the awkward truth
Let’s not dress this up.
Gas is still cheaper per kWh than electricity. As of 1 April to 30 June 2026, Ofgem says the average Direct Debit rate is 5.74p/kWh for gas and 24.67p/kWh for electricity.
That sounds bad for heat pumps until efficiency enters the chat.
Heat pumps typically produce more heat than the electricity they consume. Energy Saving Trust explains that for every unit of electricity used, a heat pump can produce around three units of heat, which is why they are so much more efficient than direct electric heating and can compete with gas in the right setup.
Running cost examples
Using current Ofgem average rates and simple efficiency assumptions:
Home type | Annual heat demand | Gas boiler cost | Heat pump cost (COP 3) |
2-bed terrace | ~6,000 kWh heat | ~£360 | ~£493 |
3-bed semi | ~9,000 kWh heat | ~£541 | ~£740 |
4-bed detached | ~12,000 kWh heat | ~£689 | ~£987 |
* Gas example assumes 5.74p/kWh gas and does not include standing charges or boiler inefficiency adjustments.
** Heat pump example assumes 24.67p/kWh electricity and a seasonal efficiency around COP 3.
These are worked examples, not fixed household bills.
Real-world results depend on:
insulation,
radiator sizing,
flow temperatures,
controls,
tariff,
and whether the system has been designed properly.
That last one matters more than the sales brochure ever will.
Put simply:
A heat pump is not automatically cheaper to run than gas.
But it is also not automatically more expensive in every home.
If the property is reasonably efficient and the system is well designed, the gap can be smaller than people expect.
Home Energy Scotland says heat pumps may not reduce your energy bill when replacing a newer gas boiler, but they do emit fewer carbon emissions and can still make sense depending on your home and goals.
🎥 Check out the video below to see our hybrid heat pump installation case study in the UK:
Heat Pump vs Gas Boiler vs Hybrid
This section needs one important correction: hybrid heat pumps are not eligible for the Boiler Upgrade Scheme. GOV.UK is explicit about that.
So here’s the cleaner comparison:
System | Typical install cost | Typical running cost (per year) | Lifespan | Carbon Impact | Grants |
Gas Boiler | £2k–£3k | £800–£1,200 | 10-15 years | High | None |
Heat Pump | £7k–£13k | £900–£1,400 | 15-20 years | Low | BUS £7,500 |
Hybrid | £8k–£14k | £850–£1,300 | 15-20 years | Medium | BUS £7,500 |
The government’s direction of travel is still towards low-carbon heat. It has said it has an ambition to phase out the installation of new and replacement natural gas boilers by 2035 at the latest, and the Future Homes Standard is intended to make low-carbon heating standard in new homes.
So while gas boilers are still cheaper upfront, they are not exactly the future-proof option.
Grants & Funding in 2026
England and Wales: Boiler Upgrade Scheme
You can get:
£7,500 toward an air source heat pump
£7,500 toward a ground source heat pump
£5,000 toward a biomass boiler
Your installer applies for the grant for you, and they must be MCS certified. You’ll also need a valid EPC, and GOV.UK says if you’re unsure about suitability, an MCS-certified installer can advise.
Scotland
Support is separate through Home Energy Scotland Grant and Loan.
Home Energy Scotland says grants and loans are available for eligible improvements, while replacement heat pumps are not eligible for grant funding, though an interest-free loan up to £7,500 may be available for replacement systems.
Low-income support
For eligible households in England, Warm Homes: Local Grant can fund free energy-saving improvements.
Also, the government has confirmed that ECO4 now runs until 31 December 2026.
So yes, there is help out there. It just depends very heavily on where you live and what sort of home you’ve got.
Servicing & Lifespan
A heat pump is not a “fit it and forget it” miracle box.
Like any heating system, it benefits from annual servicing. A well-maintained heat pump will typically last around 15 to 20 years, which is often longer than a gas boiler.
Energy Saving Trust also notes that heat pumps are an efficient alternative to fossil-fuel systems and can work well as part of long-term home upgrades.
On the servicing cost, I’d keep the article careful and say:
annual servicing is usually an extra ongoing cost
the exact price varies by installer, region, and manufacturer requirements
The Environmental Angle
This is where heat pumps shine. Even on today’s grid mix, they can slash your home’s heating emissions by up to 65% compared to gas.
And as the grid gets cleaner (more wind and solar, less coal and gas), your pump magically gets greener without you lifting a finger.
Are Heat Pumps Worth It?
Here’s the honest answer.
They’re probably worth it if:
you’re planning to stay in the home for a while,
the property is reasonably well insulated,
you’re already facing a major heating upgrade,
or you want to use the £7,500 BUS grant while it’s available.
They’re probably not worth it yet if:
you’re moving soon,
your house needs a load of basic insulation work first,
or you want the cheapest possible upfront replacement.
Heat pumps are not a no-brainer for everyone.
But they are no longer some weird eco side quest either.
For the right home, in 2026, they are a serious mainstream option.
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