How much is a heat pump?

Depending on size and installation requirements, an air source heat pump (ASHP) can cost from £10,000 to £18,000+. Compared to other heat pump types, an air source heat pump cost is fairly low.

Financial help is available to reduce the financial burden of installing clean energy sources for your home.

What financial help is available?

Through the Boiler Upgrade Scheme (BUS), you could receive a grant to cover part of the cost of replacing fossil fuel heating systems with heat pumps. Fossil fuel heating systems include oil, gas, electric or LPG (liquefied petroleum gas). Depending on eligibility, you could get up to £7,500 of the cost of an air or ground source system.

There are some minimum eligibility requirements; you can read more about the Boiler Upgrade Scheme here.

Switch Together’s group buying scheme is another great way to save even more of the cost of an air source heat pump. Using the power of group buying, Switch Together can leverage more competitive pricing and pass on the savings to those registered. Find out more about how the scheme works here.

The group-buying savings is additional to the BUS, meaning you could save even more than you would by going through other channels.

How much do they cost to run?

When you compare the running costs of an air source heat pump to traditional heating systems, they generally have low running costs. This means you could avoid overspending on your energy bills in the long run.

If you’re thinking “how much does a heat pump cost to run?”, the table below can help answer that question.

This table provides an indication of the average costs of running a heat pump system. Some factors that determine the running costs include the Coefficient of Performance (COP), the heating requirements of households, and current energy costs in the UK.

It’s good to know that the exact running costs are dependent on multiple factors, such as:

• The use of a heat pump electricity tariff, which is now offered by various energy suppliers.
• The insulation level of your house.
• If you have a separate heat source for domestic hot water heating (solar thermal panels, for example).
• Combining a heat pump and solar panels is a good way to reduce electricity costs even further, as well as carbon emissions.
• If your air source heat pump is paired with an underfloor heating system (heat pump underfloor heating requires an air-to-water connection, which can make it more complex).
• If you have solar PV installed.

Are there any other costs and how can savings be improved?

Heat pumps operate best in energy-efficient homes, however, they can still be efficient in less insulated homes. Household energy efficiency is calculated using EPCs (Energy Performance Certificates), ranked on a scale from A to G. An EPC takes into account things like insulation level, appliance efficiency, ventilation, and the age and construction of the property.

Heat pumps work at a lower flow temperature than boilers, which means they need a larger surface area to heat your home sufficiently. You may find that you need to upgrade the size of your radiators to achieve this surface area, but this is common practice. The Switch Together package includes a provisional cost estimate for radiator upgrades and this is included in the quote given in your Personal Offer. You would discuss the specific radiator requirements of your property with the installer in detail at the survey stage before the installation.

If you plan to replace your gas boiler with an air source heat pump, you might also want to think about replacing your gas cooker with an electric one. If you keep a gas supply just for cooking, you will still have to pay the gas standing charge, which is over £100 per year (keeping your costs higher than switching to electric). Of course, if you do replace a gas cooker with an electric one, that will come at a cost, too, but it could save you money in the long run.

Many energy suppliers offer specific heat pump tariffs designed to reduce your system's running costs. These tariffs often feature lower rates during off-peak hours, making it more cost-effective to run your heat pump when demand for electricity is lower. By scheduling your heat pump to operate primarily during these off-peak times, you can significantly reduce your energy bills. It's worth exploring the options with your energy provider to find a tariff that best suits your usage patterns and maximises your savings.

Manufacturers recommend you should have your heat pump serviced every year to ensure it operates at peak efficiency and prevent potential issues. For an air source heat pump, this usually costs around £200.