Costs

What a heat pump really costs after the £7,500 grant

Updated July 2026 · UK Heat Pump Grant

This is the question that matters most, and the one that gets the most confusing answers online. Here's a plain breakdown of what a heat pump typically costs — and what you actually pay once the £7,500 grant is deducted.

	Typical range	After £7,500 grant
Air source (small home)	£8,000 – £11,000	£500 – £3,500
Air source (average home)	£11,000 – £14,000	£3,500 – £6,500
Air source (large home)	£14,000 – £18,000	£6,500 – £10,500
Ground source	£18,000 – £30,000	£10,500 – £22,500

Illustrative examples only — typical market ranges to show the ballpark, not quotes, prices we set, or figures from named customers. Your actual price depends on your property and your installer's survey.

Off-gas oil or LPG home? Between 21 July 2026 and 31 March 2027 your grant may be £9,000 rather than £7,500 — making the "after grant" figures above roughly £1,500 lower. See who qualifies.

Why such a wide range? A heat pump is sized to your home's heat loss, which depends on insulation, number of rooms, ceiling heights and how warm you like things. A well-insulated 3-bed semi might need a smaller, cheaper system than a draughty 2-bed Victorian terrace. The only way to get a real price is a survey.

What's included in the price

The heat pump unit (the outdoor box)
A hot water cylinder (most homes need one)
Pipework, controls and electrical work
Installation labour
MCS certification (required for the grant)
A warranty — 5 years on most systems

What might cost extra

Larger radiators, if your current ones are too small
Underfloor heating (optional — not required)
Removal of your old boiler and tanks
Upgrading an old electrical consumer unit

Running costs: a properly-sized heat pump in a well-insulated home typically costs about the same to run as a modern gas boiler — sometimes a little more, sometimes a little less, depending on your electricity tariff and how your home performs. The big savings come from a heat-pump-friendly tariff (such as Octopus Cosy or Intelligent Go), which can cut running costs by 30–50%.

Want the wider picture? See how the £7,500 grant works and whether you qualify.

Get a real price for your home

Check your eligibility in 2 minutes and we'll connect you with a vetted MCS-certified installer for a proper, no-obligation quote based on a real survey.

Check my eligibility →

Cost ranges are typical 2026 figures for guidance only — your actual price depends on a survey of your home. Grant amount (£7,500 for air or ground source heat pumps) per the Boiler Upgrade Scheme (Ofgem). Always confirm details with an MCS-certified installer before making decisions. UK Heat Pump Grant is a service of GrafterUK Ltd (Co. No. 17303977) and is not affiliated with the UK Government.