How Much Does an Air Source Heat Pump Cost in 2026?

The three parts of a heat pump price

When you see a heat pump quote, the headline figure covers three things. Understanding the split helps you compare quotes properly and spot where a price is too good to be true.

1. The equipment

The heat pump unit itself, typically a 5kW to 16kW air-to-water model, plus a hot water cylinder and controls, accounts for a large share of the cost. Equipment alone usually runs £4,000 to £8,000 depending on output and brand. Bigger homes need more output, which costs more.

2. Installation

Labour, the outdoor unit base or wall mount, pipework, electrical connection, system filling and commissioning typically add £3,000 to £5,000. A clean, well-designed install costs more than a rushed one, and it is the difference between a system that sips electricity and one that struggles.

3. Radiator and pipework upgrades

Heat pumps run at lower flow temperatures than boilers, so some radiators may need upsizing. This is where quotes vary most. A modern, insulated home may need nothing; an older property might need several radiators changed, adding £1,000 to £3,000. A proper heat loss survey tells you exactly what is required, which is why we never quote without one.

What you actually pay after grants

The headline price is not what most homeowners pay. The £7,500 Boiler Upgrade Scheme grant is deducted directly from your invoice, and 0% VAT applies to qualifying work until at least March 2027.

Benefit-receiving households may pay nothing at all through ECO4. For the full grant picture, see our grants and funding page.

Running costs

A heat pump uses electricity, which costs more per unit than gas, but it delivers three to four units of heat per unit of electricity, so the two roughly balance out for a typical home. On a dedicated heat pump tariff, many households run cheaper than they did on gas. If you currently heat with oil or LPG, the saving is clear and immediate. We cover the numbers in detail in our running costs guide.

Total cost of ownership over 10 years

Comparing a heat pump and a gas boiler on upfront cost alone misses the point. Over ten years you should weigh the grant, the lower servicing costs, the longer lifespan and the running costs together. A new gas boiler costs £2,500 to £4,000 installed and lasts ten to fifteen years. A grant-funded heat pump often nets out at a similar upfront figure, lasts fifteen to twenty years, and protects you from future gas price volatility and the gas boiler phase-out. For the full comparison, read heat pump vs gas boiler.

How to get an accurate quote

The only way to know your real cost is a heat loss survey. Online calculators and rule-of-thumb quotes lead to oversized, overpriced systems or undersized ones that disappoint. We survey free, then give you a fixed price showing the grant deduction. Get started on our contact page.