Replacing an old heating system, such as an inefficient gas boiler, with an energy efficient alternative, like an air source heat pump, can make a significant difference to a household’s heating bills. For many, the upfront cost of a heat pump may at first appear off-putting, but once you’ve taken into consideration potential grant funding, the cost of a new air source heat pump system will not be anywhere near the level first thought.
- The cost of installing an air source heat pump in your home can be anywhere between £2,500 and £6,500, or even higher depending on the heat pump you opt for. These figures assume you’re benefiting from the £7,500 grant from the Boiler Upgrade Scheme (available until 31 March 2028).
- According to Energy Saving Trust estimates, annual energy savings of up to £1,000 could be generated by switching to an air source heat pump, but your level of savings will depend on the existing heating system you switch from and how inefficient and costly it was to run.
Work with Heat Pumps UK to find top-rated heat pump installers offering the best deals for air source heat pump installations.Enter your postcode for a free, no-obligation quote and take your first step towards a more efficient home today.
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Air source heat pump cost with and without grants
Air source heat pumps can be a very cost-effective way of heating your home. In the UK, the average price of an air source heat pump (without any grant funding) is around £14,000, but you can find models and installation packages for less – sometimes as low as £10,000.
However, there are a number of options available to householders which can help make the cost of an air source heat pump more manageable – including the Boiler Upgrade Scheme which offers £7,500 in grant support to homeowners switching to an air source heat pump from older, less efficient, and more traditional heating systems.
Thinking of switching to an air source heat pump? Fill out a quick form to find out more about heat pump installations and get the help you need from expert heat pump installers to make the switch successfully.
What is an Air Source Heat Pump?
An air-source heat pump is a type of renewable heating system that uses electricity to extract heat from the outside air and use it to heat your home. They work very similarly to a fridge, except in reverse – instead of using cold air to cool refrigerant filled tubes, they use hot air to warm them up.
This refrigerant is then compressed to create a high-pressure gas, which is then passed through a heat exchanger. This heats the water that circulates through your radiators and provides heating for your home. In some instances they can even be configured to provide hot water for the home, too.
Air source heat pumps run on electricity which can be supplied by the National Grid or through a renewable energy source, such as solar panels or wind turbines. Using renewable energy means that you will be reducing your household’s carbon footprint and contributing to the UK’s renewable energy targets.
What Costs Do You Need To Consider With Heat Pump Installation?
The cost of an air source heat pump will depend on a number of factors, including the size of your home, the type of heating system you are replacing and the quality of the installation.
To replace an existing heating system, including installation, you can expect to pay around £10,000-£14,000, but this will depend on the brand and heat output of the heat pump and the installation company you work with. When compared to a new gas boiler, which usually costs in the region of £1,500 -£3,500 to buy and install, you can see that air source heat pumps can, at first, appear to be an expensive option.
It is important that your heat pump system is installed by fully qualified professionals, and this is where Heat Pumps UK can assist you. We can put you in touch with heat pump installers with excellent reputations offering the best deals for homeowners just like you. Let us connect you with an installer & qualify for £7,500 in funding.
So Why Make the Switch To A Heat Pump?
While the purchase and installation costs may seem high, air source heat pumps provide significant savings over time that can easily outweigh the initial costs. And with UK heat pump grants support available until at least 2028, you can make significant savings on the initial installation as well as your long-term bills. Reasons to switch include:
Cheaper Energy Bills
Air source heat pumps can be up to 50% more efficient than gas boilers, which means you will use less energy to heat your home and your heat pump running costs will be considerably lower. In fact, the savings you could make on your energy bills by switching to an air source heat pump could be as much as £1,000/year in some instances, but this depends on the existing fossil fuel heating system that you are replacing.
The Energy Saving Trust, for example, estimates that a household replacing an old electric storage heater with a standard air source heat pump could potentially enjoy fuel bill savings of £1,000/year. Replacing an old G-rated oil boiler would bring estimated savings of £65/year, while replacing an old G-rated gas boiler could net fuel bill savings of £260/year (based on fuel prices as of July 2025).
See full list of estimated savings from switching to an air source heat pump.
Added Value to Your Home
Installing an air source heat pump in place of many traditional heating systems can also add value to your home. A recent study by the Energy Saving Trust found that on average, a property with an air source heat pump is worth around £6,000 more than one without. Other research from World Wildlife Fund and Scottish Power conducted in 2022, estimates that a heat pump can increase a home’s value by between 1.7 and 3%.
Regardless of exactly how much more your home will be worth, an air source heat pump installation usually works best with underfloor heating or upgraded radiators, which will inevitably improve the heating infrastructure in a home and therefore add to the home value thanks to the reduced heating bills the new owners will enjoy.
Government Grants and Incentives
The government offers a number of grants and incentives which can help reduce the cost of installing an air source heat pump. One such incentive is the Boiler Upgrade Scheme which aims to encourage households to switch from old inefficient boilers to renewable energy alternatives.
The free grant amount increased in October 2023 to £7,500 and is due to last until 31 March 2028, potentially covering a large percentage of the costs to have a heat pump installed for many typical households.
How Much Do Air Source Heat Pumps Cost to Run?
Unlike gas boilers, air source heat pumps are powered by electricity. This means your heating bills will depend on how much electricity you draw from the grid.
An average air source heat pump will be able to create enough heat for your home for around 4000 kWh of electricity per year. At a price of 25.73p per kWh (based on the Ofgem price cap July to September 2025), this would cost £1029.20 per year.
However, if you combine your air source heat pump with renewable energy technology, such as solar panels, you could significantly reduce the electricity costs as you’ll be running the system with your own self-produced solar power. You will be saving money both on your gas bills and your electricity bills by minimising your use of fossil fuels across the board.
What Are The Maintenance Costs Of Air Source Heat Pumps?
Heat pump service costs are generally low, regardless of if you have an air to air heat pump, air to water, ground to air or ground to water heat pump. This covers all types of heat pump, air source and ground source heat pumps.
Generally, a full service of any heat pump will cost between £100 and £300. To ensure your system is in perfect working order, you’ll typically want to get your heat pump serviced once a year. You can also sign up to service plans for between £10 and £20 per month, helping you make some savings.
So how much does a heat pump cost in terms of annual maintenance? Well, very little in comparison to the savings you’ll make on your heating bills.
How Much Will You Save on Your Energy Bills?
This is a difficult question to answer as it depends on a number of factors, such as:
- The size of your home
- The type of air source heat pump you install
- Your energy usage
- The price of electricity and gas in your area
- The heating system you are replacing
However, it’s fair to say that switching to an air source heat pump could save you hundreds of pounds every year on your energy bills, with some households experiencing savings of up to 50% on their heating alone.ar on your energy bills with some households experiencing savings of up to 50% on their heating alone.
When Will Gas Boilers be Phased Out in the UK Altogether?
The government had originally announced that gas boilers would be phased out in new homes altogether by 2025, but this target was revised by 10 years to 2035. This means that no new-build houses can be fitted with a gas boiler and that all households will need to switch to an alternative heating system when the time comes to replace their gas boiler.
However, this does not mean that you have to switch to an air source heat pump. You may choose to install a different type of heating, such as a biomass boiler or a ground source heat pump.
The Government weakened its plan to phase out gas boilers and said that people would not be forced to rip out their existing boilers and replace them with a heat pump. The requirement only applies to people who are due to change their boiler and even then, not until 2035, and that exemptions will apply to those for whom the change would hit them the hardest financially, so they will not have to switch at all.
Thinking of getting ahead and switching to an air source heat pump? Enter your postcode here to find out how Heat Pumps UK can help you find the perfect heat pump installer.
What Help is Available With The Cost Of Switching To An Air Source Heat Pump?
Clearly, expecting households to be in a financial position to make the transition to air source heat pumps and other low carbon heating systems or renewable energy technologies without financial support is unrealistic, especially while prices remain so high.
That’s why the UK government has introduced a number of schemes to help people with the costs. The current schemes that may provide financial assistance or grants include the Energy Company Obligation (ECO) and the Boiler Upgrade Scheme (BUS).
The Boiler Upgrade Scheme in particular is something the vast majority of UK homeowners could qualify for, resulting in either:
- £7,500 off the purchase and installation cost of an air source heat pump OR
- £7,500 off the purchase and installation cost of a ground source heat pump OR
- £5,000 off the purchase and installation cost of a biomass boiler
These grant values were increased by the Government by 50% to £7,500 from 23 October 2023 in an attempt to make boiler alternatives, such as heat pumps, a more attractive proposition to UK households. The government grants are free and do not have to be repaid, and most UK homeowners are eligible provided they are replacing an older, more inefficient, high-carbon emissions heating system. Check your eligibility with us today.
How to Reduce Your Energy Bills
As well as switching to an air source heat pump, there are a number of other things you can do to reduce your bills in the meantime if this is your primary reason for switching:
- Install insulation in your home – This is one of the most cost-effective ways to reduce your heating bills because it will keep your home warm in the winter and cool in the summer so you won’t need to use as much energy to keep it at a comfortable temperature.
- Install a smart thermostat – A smart thermostat will allow you to control your heating from your phone, so you can make sure it’s not on when you’re not home or when you’re asleep. This can save you a lot of money each month.
- Upgrade your boiler – If your boiler is more than ten years old, it is likely that it is not energy efficient. Upgrading to a newer, more energy-efficient boiler (or better still, an air source heat pump) can save you up to hundreds of pounds a year on your bills.
- Install solar panels – Solar panels can help you to reduce your reliance on energy from the grid, which could save you a lot of money in the long run. You can even sell extra electricity back to the grid to profit from your solar panels.
- Install a smart meter – A smart meter will help you to track your energy usage and identify where you can make savings. This can help you to reduce your bills by up to £300 a year.
- Turn off unused appliances – What many people don’t realise is that even when appliances are not in use, they are still using energy. By turning off unused appliances, you can save yourself a lot of money annually.
- Switch to LED light bulbs – LED light bulbs use up to 90% less energy than traditional light bulbs, meaning you will save money on your bills as well as help the environment.
- Only run the washing machine and dishwasher when they are full – Washing machines and dishwashers use a lot of energy, so it’s best to only run them when they are full. This will save you money as well as help to conserve resources.
How Much Does An Air Source Heat Pump Cost: Summary
As you can see, the answer to how much an air source heat pump costs in the UK is not always straightforward. It depends on your individual circumstances and what type of central heating system or other heating option that you currently have.
However, if you are thinking of making the switch, it is important to find a trusted installer who can find you the best deal and successfully install your heat pump system so you can enjoy savings for years to come. You may even be able to qualify for heat pump grant assistance under the various government-backed schemes, especially the boosted Boiler Upgrade Scheme.
So, what are you waiting for? Find out what heat pump options are open to you today.
