How much does a heat pump cost, and what grants can I get?
Short answer
A typical air-source heat pump installation is currently around £11,000 to £12,000 before grants, although complex homes can cost more. In England and Wales, the Boiler Upgrade Scheme offers £7,500 for eligible air-to-water or ground-source heat pumps, £2,500 for eligible air-to-air systems, and £9,000 for some off-gas-grid oil or LPG homes until 31 March 2027.
Last checked 24 September 2026 · 5 sources
How much does an air-source heat pump cost?
Energy Saving Trust currently gives a typical installed cost of around £11,000 to £12,000.
The final price depends on the heat pump size, home size, radiator changes, hot-water cylinder, pipework, electrical work and how difficult the installation is.
That is why a postcode estimate is only a starting point. A proper quote needs a survey and system design.
What is the Boiler Upgrade Scheme worth in England and Wales?
As of 24 September 2026, the main grant values are:
| Eligible system | Grant |
|---|---|
| Air-to-water heat pump | £7,500 |
| Ground-source or water-source heat pump | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler in qualifying rural/off-gas-grid cases | £5,000 |
There is also a temporary £9,000 grant for eligible off-gas-grid properties replacing oil or LPG with an air-to-water or ground-source heat pump. That uplift applies until 31 March 2027.
Your installer applies for the Boiler Upgrade Scheme and must pass the grant on as an upfront discount.
Do I need insulation to get the grant?
No. Current Boiler Upgrade Scheme rules do not require loft or cavity-wall insulation as an eligibility condition.
An installer may still recommend insulation because reducing heat loss can improve comfort and lower running costs.
Do new-build homes qualify?
Most developer-built new homes do not qualify.
Some eligible self-build homes can qualify if they meet the scheme rules.
What support is available in Scotland?
The Boiler Upgrade Scheme does not apply in Scotland.
Home Energy Scotland currently offers grant and loan support for heat pumps. Energy Saving Trust lists up to £7,500 as a grant plus up to £7,500 as an interest-free loan, with a £1,500 rural uplift for eligible homes.
That means total support can reach £15,000, or £16,500 for qualifying rural and island households.
What about Northern Ireland?
The Boiler Upgrade Scheme does not apply in Northern Ireland.
Homeowners should check current support through NI Energy Advice because funding differs from Great Britain and changes over time.
Is VAT charged on a heat-pump installation?
Ofgem notes that qualifying energy-saving materials, including heat pumps, are currently subject to 0% VAT until 31 March 2027.
What should I do next?
- Get at least three MCS-certified quotes.
- Make sure the grant is shown clearly as an upfront discount.
- Compare what each quote includes, not just the headline price.
- Check grant rules again immediately before signing, because funding changes.
Sources
- Energy Saving Trust, Air source heat pumps: costs, savings and benefits, last updated 16 July 2026.
- Energy Saving Trust, Heat pump installation: a step-by-step guide, 15 July 2026.
- GOV.UK, Notice of approved grant categories and values for the Boiler Upgrade Scheme, updated 21 July 2026.
- Ofgem, Boiler Upgrade Scheme — Property owners, checked 24 September 2026.
- Energy Saving Trust, Home Energy Scotland funding guidance, checked 24 September 2026.
Last checked: 24 September 2026