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 hitting £7,500, more homeowners are asking: is now the time to ditch the boiler and jump on the heat pump bandwagon?
Good question. Because while the idea of pulling free heat out of thin air sounds like magic, the reality comes with a chunky price tag, some caveats, and a bit of number-crunching.
This guide cuts through the noise to give you the facts: what they cost to buy and install, what they cost to run, what support you can get, and whether they’re genuinely worth it in 2025.
Ready to make your home more energy-efficient and cut down on your heating bills? Get a heat pump quote today.
The short version:
A proper air source heat pump install costs between £7,000 and £13,000.
The government will knock off up to £7,500 of that if you qualify.
Running costs? Right now, gas is usually still cheaper - but the gap is closing.
A well-maintained pump will last 15–20 years.
If your house leaks heat like a sieve, you’ll need insulation sorted first.
We fit and install gas boilers and heat pumps nationwide, get your quote here.
That’s the gist. But let’s unpack the details - because if you’re spending car-money on a heating system, you deserve more than bullet points.
How Much Do Heat Pumps Really Cost?
When people say, “a heat pump costs £7,000–£13,000,” they’re not plucking numbers from thin air.
That’s the all-in price - the unit, the labour, the bits and bobs (radiators, cylinders, piping) and the installer’s tea breaks rolled together.
Cost by property size:
Property Type | Heat Pump + Install Cost | After £7,500 BUS Grant |
1–2 bed flat/terrace | £7,000–£9,000 | £–500 to £1,500 (yes, grants can cover most of it) |
3 bed semi | £8,000–£11,000 | £500 to £3,500 |
4+ bed detached | £10,000–£13,000 | £2,500 to £5,500 |
Cost by model:
Heat Pump Model | Heat Pump Cost | Efficiency | Power | Min Temp. |
Samsung EHC Monobloc | £3,000-£7,000 | A++ | 16kW | -25oC |
Hitachi Yutaki M | £4,000-£7,000 | A+++ | 11kW | -20oC |
Vaillant flexoTHERM 400V + aroCOLLECT | £7,000-£10,000 | A+++ | 19kW | -10oC |
Daikin Altherma | £6,000-£10,000 | A++ | 16kW | -20oC |
What Affects Installation Costs?
If you’ve got a combi boiler, brace yourself: heat pumps need a hot water cylinder.
That means pipework changes, finding somewhere to put the tank, and sometimes ripping up floors. Got a system boiler already? Much easier swap.
Insulation is another biggie. A heat pump works best in a home that holds onto heat.
Poor insulation = higher running costs, lower efficiency, and potentially a bigger pump.
Which means - yep - higher upfront costs.
And don’t forget radiators. Heat pumps run at lower flow temperatures, so those little single-panel rads from the 80s probably won’t cut it. Expect to upgrade to larger doubles or triples in key rooms.
Running Costs: The Awkward Truth
Let’s not sugar-coat it. Gas is still cheaper to run than electricity in 2025. With electricity sitting around 30–33p per kWh and gas at about 10p, the maths doesn’t lie.
Now, heat pumps claw back efficiency by producing 3 units of heat for every 1 unit of electricity (that’s the fabled “COP of 3”).
So, while you’re paying three times more for each kWh of electricity, you’re also getting roughly three times the heat out of it.
The result? Bills that are similar to gas in many homes - sometimes a little higher, sometimes a little lower.
Annual running cost examples:
Home Type | Heat Demand | Gas Boiler Cost | Heat Pump Cost (COP 3) |
2-bed terrace | ~6,000 | ~£600 | ~£660 |
3-bed semi | ~9,000 | ~£900 | ~£990 |
4-bed detached | ~12,000 | ~£1,200 | ~£1,320 |
🎥 Check out the video below to see our hybrid heat pump installation case study in the UK:
Heat Pump vs Gas Boiler vs Hybrid
Here’s where heat pumps get interesting. Gas boilers are still dirt cheap to install (£2–3k), but they’ll be phased out from new builds in 2025 and completely by 2035.
Heat pumps are pricier upfront, but they last longer, cut your carbon, and get government cash thrown at them.
And then there’s the hybrid option - a halfway house where a pump does the heavy lifting most of the year, but your boiler kicks in when it’s Baltic outside.
Hybrids are slightly more expensive to install but give you the comfort blanket of gas back-up.
System | Install Cost | 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 |
Grants & Funding: Free Money (Sort Of)
The government knows heat pumps are expensive, so they’re bribing us to get on board.
Boiler Upgrade Scheme (BUS): up to £7,500 off in England and Wales. Installer applies for you. You need an EPC with no glaring “add insulation” warnings.
ECO4: aimed at low-income households, this can sometimes cover the full cost of a pump and insulation.
LA Flex: local councils have extra leeway to help fuel-poor households not on benefits.
If you’re in Scotland or Northern Ireland, separate schemes are available.
Servicing & Lifespan
Treat your heat pump like you treat your car - give it an annual service and it’ll keep running for years.
A service costs about £150–£300 and covers safety checks, cleaning filters, topping up refrigerant if needed, and keeping efficiency high.
With that care, a pump will last 15–20 years. That’s longer than many gas boilers, which tend to conk out around year 12–15.
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?
Let’s be blunt: heat pumps aren’t a no-brainer for everyone.
If your house is poorly insulated, if you’re planning to move in two years, or if you’re allergic to upfront costs, stick with a boiler for now.
But if you’ve got a reasonably efficient home, you’re in it for the long haul, and you like the idea of a government grant paying a big chunk of your bill, then yes - they’re worth it.
They’re quieter than you think, they last longer than boilers, and they’ll only get cheaper to run as the UK’s energy system evolves.
Get Quotes for a Heat Pump
Without boasting, get your new heat pump or boiler quote and buy from us, here’s why:
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Up to 12-year guarantee on selected boilers.
Fixed price guarantee: No hidden costs.
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