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Air Source Heat Pumps Costs in the UK

✔ The cost of an air source heat pump in the UK can range between £3,000 and £10,000.

✔ Costs vary widely depending on factors such as your property size and current heating system.

✔ You could potentially reduce your initial investment by taking advantage of government incentives like the Boiler Upgrade Scheme.

✔ You should consider both the upfront installation costs and the long-term running expenses when evaluating the overall financial impact of switching to an air source heat pump.

Although the initial cost may appear significant, air source heat pumps offer an energy-efficient and environmentally friendly alternative to traditional heating systems. The transition to air source heat pumps is particularly appealing now, thanks to the savings provided by the Boiler Upgrade Scheme.

In this article, we'll look at the different types of air source heat pumps, the factors impacting costs, and evaluate if heat pumps are worth it for your specific situation.

Curious to find out how much it will cost you to install an air source heat pump? Complete the form below to get your free, no-obligation quote today:

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How Much Does an Air Source Heat Pump Cost at Glow Green?

According to EDF Energy, the cost of an source heat pump in the UK can range between £3,000 and £10,000. Though, it's important to point out that multiple factors will impact how much you'll actually pay which makes it challenging to provide a more precise estimate.

Therefore, to give you some idea of potential costs at Glow Green, consider these examples based on different property sizes and heating requirements:

  • Example 1: For a two-bedroom home with five radiators, you might expect to pay around £14,500 for a 5kW heat pump unit, which could be reduced to around £7,000 with the Boiler Upgrade Scheme voucher.

  • Example 2: If you have a larger five-bedroom property with ten radiators, the cost for a 12kW unit could be about £21,000, or £13,500 after applying the BUS voucher.

  • Example 3: For a six-bedroom home requiring two 7kW units, with ten radiators, you might be looking at around £24,000, potentially reduced to £16,600 with the BUS voucher.

  • Example 4: In the case of a very large eight-bedroom property with 20 radiators, needing both a 10kW and a 7kW heat pump unit, the cost could reach about £34,500, or around £27,000 after applying the BUS voucher.

For ease, here is the above information in table format:

Property SizeRadiatorsHeat Pump Unit(s)Cost without BUSCost with BUS
2 bedroom55kW£14,500£7,000
5 bedroom1012kW£21,000£13,500
6 bedroom102 x 7kW£24,000£16,600
8 bedroom2010kW + 7kW£34,500£27,000

It's important to remember that these figures are illustrative and your actual costs may vary depending on your specific circumstances and installation requirements.

We encourage you to obtain a free air source heat pump quote to gain a clearer understanding of the costs associated with hiring an installer.


Types of Air Source Heat Pumps

Air source heat pumps extract heat from the outside air, even in colder temperatures, and use it to warm your living spaces and provide hot water. There are two main types of air source heat pumps:

  • Air-to-air heat pumps: These systems absorb heat from the outdoor air and release it directly into your home through indoor units. You can use them to heat or cool individual rooms which allows you to set different temperatures in various spaces.

  • Air-to-water heat pumps: These pumps transfer the extracted heat to your home's water-based heating system. You can use them to warm your home through radiators or underfloor heating, as well as to provide hot water for your taps, showers and baths. They're an excellent option if you're looking to replace a traditional boiler system while maintaining a familiar heating setup.

At Glow Green, we install the Vaillant aroTHERM plus air-to-water air source heat pump.


What Factors Impact Heat Pump Costs?

When considering an air source heat pump for your home in the UK, several factors can impact the overall cost. Understanding these elements will help you make an informed decision about your investment:

Property Size

The larger your property, the more powerful heat pump you'll need which can increase costs. Spacious homes with multiple rooms or open-plan layouts typically require heat pumps with higher output capacities to effectively maintain comfortable temperatures throughout. This need for increased power not only affects the initial purchase price of the unit but also influences installation complexity and potentially ongoing running costs.

Additional Home Improvements

You might need to upgrade insulation or radiators to ensure optimal heat pump performance which can add to the overall cost. Heat pumps operate most efficiently in well-insulated homes so you may find it necessary to improve your property's thermal envelope. This could involve adding loft insulation, cavity wall insulation or even upgrading to double or triple-glazed windows. Also, your existing radiators might not be suitable for the lower flow temperatures typically used by heat pumps. You may need to replace them with larger radiators or consider underfloor heating for better heat distribution.

Installation Complexity

Factors like access, scaffolding needs and any necessary changes to your central heating system can influence installation costs. For instance, if your home has limited access points or requires the heat pump to be installed in a hard-to-reach area, specialised equipment or additional labour may be needed. Scaffolding might be necessary for multi-storey buildings or properties with challenging roof access which may add to the overall expense.

Heat Pump Efficiency

More efficient heat pumps may cost more upfront but could lead to lower running costs in the long term. When exploring your options, you'll notice that heat pumps come with different efficiency ratings, often expressed as Coefficient of Performance (COP) or Seasonal Performance Factor (SPF). Higher-rated models typically command a premium price which reflects their advanced technology and superior performance.

These more efficient units are designed to extract more heat from the air using less electricity which could translate into significant energy savings over time. They often incorporate cutting-edge features such as variable-speed compressors, enhanced defrosting capabilities and smart controls that optimise performance based on your home's specific needs and external weather conditions.

Government Incentives

The Boiler Upgrade Scheme can significantly reduce your initial investment. Launched to encourage homeowners in England and Wales to transition from traditional fossil fuel heating to more sustainable options, this scheme provides substantial upfront grants for the installation of air source heat pumps. By offering financial support, the scheme aims to make eco-friendly heating solutions more accessible and affordable.


What Factors Impact Heat Pump Running Costs?

It's challenging to provide a precise figure for heat pump running costs as they can vary significantly based on several factors. To help you understand what might influence your expenses, consider the following key elements:

Energy Efficiency of Your Home

The better insulated and draught-proofed your property is, the less energy your heat pump will need to maintain comfortable temperatures. A well-insulated home can significantly reduce your running costs as the heat pump won't need to work as hard to keep your living spaces warm.

Electricity Tariff

Your choice of electricity tariff can have a substantial impact on your running costs. Some energy providers offer special tariffs for heat pump users which could lead to lower bills. It's worth shopping around and comparing different options to find the most cost-effective rate for your needs.

Heat Pump Efficiency

The efficiency of your heat pump, often measured by its Coefficient of Performance, plays a crucial role in determining running costs. More efficient models may cost more upfront but could lead to lower energy consumption and reduced bills over time.

Usage Patterns

How you use your heating system will affect your running costs. Maintaining a consistent temperature throughout the day is often more efficient than frequently adjusting the thermostat. Your lifestyle and heating preferences will therefore influence your overall expenses.

Outside Temperature

Heat pumps work more efficiently in milder temperatures. In colder climates or during particularly harsh winters, your system may need to work harder, potentially increasing your energy consumption and costs.

System Maintenance

Regular maintenance can keep your heat pump operating at peak efficiency. Neglecting servicing might lead to reduced performance and higher running costs over time.

We recommend consulting with a reputable air source heat pump installer, such as Glow Green, to gain insights into your potential running costs based on your specific circumstances.


Government Grants for Air Source Heat Pumps

There are several air source heat pump grants that can significantly reduce the cost of installing a heat pump in your home. These financial support mechanisms aim to make the transition to low-carbon heating more affordable for UK homeowners.

Let's explore the key programs available to help you offset the initial investment of a heat pump system:

Boiler Upgrade Scheme

The Boiler Upgrade Scheme offers a substantial grant to help you switch to a more environmentally friendly heating system. As of October 23, 2023, you can receive £7,500 towards the cost of installing an air source or ground source heat pump in your home.

This increased grant amount, up from the previous £5,000 for air source and £6,000 for ground source heat pumps, makes it one of the most generous schemes in Europe. The BUS is available for properties in England and Wales and is set to run until 2028, giving you ample time to take advantage of this offer.

ECO4

While not specifically designed for heat pumps, the ECO4 scheme can indirectly support your heat pump installation. ECO4 focuses on improving energy efficiency in low-income and vulnerable households.

If you qualify, you might receive funding for insulation improvements which are often necessary before installing a heat pump. Better insulation can enhance your heat pump's efficiency, potentially leading to lower running costs.

0% VAT on Heat Pump Installations

To further reduce the cost of your heat pump installation, the UK government has introduced a 0% VAT rate on the supply and installation of energy-saving materials including heat pumps. This zero-rate VAT applies not only to the heat pump itself but also to ancillary supplies such as ground works for ground source heat pumps, system controls and even necessary modifications like installing larger radiators or underfloor heating. This incentive is set to run until March 2027.


How Can You Save on Heat Pump Installation Costs?

You can significantly reduce the costs associated with installing an air source heat pump by considering several strategies:

  • Integrate solar panels: If feasible, installing solar panels can generate electricity to power your air source heat pump, reducing your dependence on the grid and lowering operational costs.

  • Improve your home's insulation: A well-insulated home requires less energy to heat, reducing the workload on your heat pump and lowering running costs.

  • Ensure proper sizing: Consult with an expert, such as Glow Green, to determine the correct size of air source heat pump for your home. An oversized unit can lead to inefficiencies and increased operational costs.

  • Check your radiators: Consider installing modern, energy-efficient radiators designed to work optimally with heat pumps.

  • Optimise the placement of your air source heat pump: Proper positioning, considering factors like sunlight exposure and wind protection, can improve efficiency and reduce running costs.

  • Consider off-peak electricity rates: Running your air source heat pump during off-peak hours could lead to significant savings on your energy bills.

If you're considering a solar panel installation to complement your heat pump, our qualified experts are here to guide you through your options and address any questions you may have.


Are Air Source Heat Pumps Worth It?

In many cases, air source heat pumps are a worthwhile investment in the UK. These heating systems offer numerous benefits that can make them an attractive option for your home. With generous government incentives like the Boiler Upgrade Scheme, the initial installation costs have become more manageable for many, making them even more worthwhile.

However, before committing, it’s essential to account for your unique situation. Variables like your home’s insulation quality, existing heating setup and weather patterns all play a role in determining how beneficial a heat pump will be for you.

It's important to carefully evaluate your individual circumstances and consult with heat pump experts, such as Glow Green, before making the decision to install an air source heat pump.


Air Source Heat Pump Costs FAQs

What factors affect the cost of an air source heat pump installation?

The cost can be influenced by factors such as the size of your property, the heat pump's capacity, the complexity of the installation and any additional work required such as upgrading radiators or improving insulation.


How do the running costs of air source heat pumps compare to traditional heating systems?

Currently, it may cost more to run an air source heat pump than a gas boiler for the average UK household but this can vary depending on factors such as energy prices and home efficiency.


Are there any additional costs to consider when installing an air source heat pump?

Yes, you may need to factor in costs for upgrading your home's insulation, installing larger radiators or underfloor heating and annual servicing.


How does the cost of an air source heat pump compare to a ground source heat pump?

Air source heat pumps are generally less expensive to install than ground source heat pumps.


Are there any tax benefits to installing an air source heat pump?

Yes, as of 2023, there's a 0% VAT rate on the installation of air source heat pumps in the UK which can lead to significant savings on the overall cost.