Heat pump cost and the Boiler Upgrade Scheme grant

Typical UK air source heat pump cost, the £7,500 Boiler Upgrade Scheme grant that can be deducted, and what running costs to expect.

An air source heat pump moves heat from the outside air into the home. It runs on electricity and can heat a well-insulated house efficiently, producing several units of heat per unit of electricity.

In England and Wales the Boiler Upgrade Scheme offers a grant that an MCS installer deducts from the quoted price.

Typical UK cost

Cost ranges are indicative and attributed to Energy Saving Trust. Prices vary by property, region and installer – always get quotes and check the official source.

Typical saving

Running costs depend on the electricity price, the heat pump's efficiency and how well the home is insulated. A well-insulated home with a correctly sized system can run at a comparable or lower cost than an old gas boiler; a poorly insulated one may cost more.

Saving figures are indicative and attributed to Energy Saving Trust. Check the official source.

Payback

The grant substantially lowers the up-front cost. Whether running costs beat a gas boiler depends heavily on insulation and the electricity-to-gas price ratio, so insulate first.

What affects the price

• The heat demand of the home (insulation and radiator or underfloor sizing).
• Whether existing radiators need upsizing.
• The electricity tariff and any time-of-use rates.
• Installation complexity and outdoor unit siting.