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How Much Does an Air Source Heat Pump Cost and What Grants Are Available?

2026 Guide
5 February 2026 by
How Much Does an Air Source Heat Pump Cost and What Grants Are Available?
Staff, Vicki Smith

How Much Does an Air Source Heat Pump Cost?

The cost of a heat pump installation varies based on property size, insulation, and system design. While upfront costs are higher than boiler replacements, government support significantly reduces the barrier. 

Our free online calculator analyses your property's EPC data and calculates your best heat pump solution—including whether air source, ground source, or a hybrid system would work best.

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For an average UK home (around 3–4 bedrooms), the total installed cost of an air source heat pump typically falls roughly between £7,000 and £15,000 before grants

That range covers straightforward installs where existing heating infrastructure (pipes, cylinders, etc.) is compatible with heat pump operation. More complex installs that require substantial system upgrades can cost more.

Property Size

Full Installation Cost

After £7,500 Grant

Annual Savings*


Small (2-3 bed)

Typical Terrace or flat


£7,500 - £12,000


£500 - £4,500


£500+


Medium (3-4 bed)

Semi-detached or townhouse



£10,000 - £14,000


£2,500 - £6,500


£600+


Large (4+ bed)

Detached house



£12,000 - £18,000


£4,500 - 10,500


£700+

*Compared to typical gas boiler running costs










What Grants are Available? 

The UK government’s Boiler Upgrade Scheme (BUS) currently offers grants to eligible homeowners installing heat pumps. This can dramatically lower installation costs.

BUS Grant Scheme


Find Out More 








Can I Finance My Heat Pump Installation Cost? 

When factoring in energy savings, grant support, and long system lifespan, many homeowners find heat pumps offer strong long-term value.

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Thermal Earth Finance Options:

Flexible finance options can also spread costs, making the switch more accessible.

Find Out More 

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Green Homes Wales

Helping homeowners in Wales make energy efficient improvements to their homes

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