Heat Pump Cost UK 2026 — What You Actually Pay After Grants
The headline "£7,500 grant covers most of it" is true for some homes and very misleading for others. This page breaks down what you actually pay in 2026 — by heat pump type, by property — including the bits that don't make it onto installer quotes until late in the conversation.
Headline costs by heat pump type (2026)
| Type | Typical install cost | BUS grant | Net cost after grant |
|---|---|---|---|
| Air source (ASHP) — small home (4kW) | £8,000–£10,500 | £7,500 (£9,000 oil/LPG) | £500–£3,000 |
| Air source — typical home (7–9kW) | £10,000–£13,000 | £7,500 (£9,000 oil/LPG) | £2,500–£5,500 |
| Air source — large home (12kW+) | £13,000–£15,000 | £7,500 (£9,000 oil/LPG) | £5,500–£7,500 |
| Ground source — trench install | £20,000–£28,000 | £7,500 (£9,000 oil/LPG) | £12,500–£20,500 |
| Ground source — borehole | £25,000–£35,000+ | £7,500 (£9,000 oil/LPG) | £17,500–£27,500+ |
| Air-to-air heat pump | £4,000–£8,000 | £2,500 (live 28 April 2026) | £1,500–£5,500 |
| Hybrid (heat pump + boiler) | £9,000–£15,000 | Not eligible | £9,000–£15,000 |
Ranges reflect variation in property size, complexity of radiator changes, brand premium, and regional install pricing (London and the South East tend to come in 10–15% above national averages).
What's included in the £10,000–£15,000?
A standard MCS-certified air source heat pump install includes:
- Outdoor unit (5–14 kW depending on home size).
- Indoor unit / controller (small wall-mounted box near the cylinder).
- Hot water cylinder (typically 250–300 litres, unvented).
- Buffer tank (50–100 litres, recommended for most installs).
- Pipework connecting outdoor unit to indoor unit and through to your existing radiator circuit.
- Initial radiator change-outs (2–4 radiators is typical).
- Electrical work — heat pumps need a dedicated circuit; the install includes the consumer unit work.
- Removal of old boiler.
- Smart controller / thermostat.
- Commissioning — weather compensation tuning, customer training.
- MCS certificate (essential for the BUS grant and SEG payments).
Hidden extras that often aren't in the quote
The biggest source of "the heat pump cost more than quoted" complaints is items not specified upfront. Watch for:
Extra radiator changes
Most installs replace 2–4 radiators. A bad survey might identify only 2; a thorough survey might find 5–6 are needed for the lower flow temperature. Budget £200–£400 per additional radiator, including labour.
New hot water cylinder space
If you have a combi boiler, you don't currently have a hot water cylinder. Adding one means finding space — typically an airing cupboard, loft or under-stairs cupboard. Sometimes a small house extension or loft conversion is needed. Add £500–£2,000 if structural work is involved.
Larger pipework
Heat pumps move more water at lower temperatures than gas boilers. Some homes need pipework upsized from 15mm to 22mm. £200–£800 depending on accessibility.
Consumer unit / wiring upgrade
Heat pumps draw 4–8 kW at peak. Older homes with under-sized consumer units may need a full replacement. £300–£800.
Scaffolding or access
If the outdoor unit needs to go on a high wall (e.g. above a single-storey rear extension), scaffolding hire adds £200–£500.
Asbestos survey for older homes
Properties built before 2000 may need an asbestos check before drilling holes through external walls. £150–£300.
How grants change the maths
Boiler Upgrade Scheme (BUS) — main driver
The headline £7,500 deducted from the installer's invoice. Open to all owner-occupiers and private landlords. Not means-tested. Full BUS guide here.
BUS £9,000 uplift (July 2026)
For oil or LPG households, the BUS rate rises to £9,000 from July 2026. If your current heating is oil or LPG, defer your install until then unless your boiler is breaking down.
BUS air-to-air (£2,500, live since 28 April 2026)
For air-to-air heat pumps only. A planned uplift to £7,500 is under DESNZ consultation but unconfirmed.
0% VAT (until 31 March 2027)
Zero VAT applies to the installer's invoice — saves you 5% (the post-2027 rate) or 20% (the standard rate) compared to other installations. On a £12,000 install that's £600 saved vs the 5% rate, £2,400 vs the standard 20%.
Warm Homes: Local Grant (income-tested)
If household income ≤ £36,000 and EPC ≤ D, the WHLG can fund up to £15,000 of low-carbon heating — stackable with your insulation upgrades but not with BUS on the same heat pump. Full WHLG guide.
Home Energy Scotland Grant & Loan
Scotland's equivalent — £7,500 grant + £7,500 interest-free loan (+£1,500 rural uplift). Open to all Scottish homeowners regardless of income.
Finance options for the gap
Most homeowners face a £2,500–£7,500 net cost after BUS. Options to spread it:
Installer 0% APR finance
BOXT, Heatable, Octopus Energy and others offer 0% APR plans (typically 60 months). Spreads £5,000 over 5 years at £83/month. Most don't have early-repayment penalties.
Green mortgages
Nationwide Green Additional Borrowing — 0% interest £5,000–£20,000 for 2 or 5 years for existing mortgage customers. Currently the best on market for heat-pump finance.
Halifax Green Living Offers — £2,000 cashback specifically for heat pumps.
Nationwide Green Reward — £500 cashback for EPC ≥92, £250 for 86–91.
See our grants guide for the full green finance overview.
Subscription / Aira model
Aira sells a 15-year subscription including install, service and warranty. No upfront cost; monthly payment over the contract. Best for households who want simplicity but pay more overall.
Octopus Cosy 6 deal
Octopus offers a Daikin-based system at ~£500 net cost after BUS and Octopus subsidy. Best-value full install on the market if Octopus's installer covers your area.
Ongoing costs after install
Service contracts
Most heat pumps need an annual service (£120–£200). Some manufacturers (Daikin, Vaillant) tie warranty validity to scheduled servicing. Cheaper than gas boiler servicing (no gas safety certificate needed).
Electricity for the heat pump
7,000–9,000 kWh/year for a typical UK home — depends entirely on insulation and SCOP. See our running cost calculator for your specific number.
Replacement parts
Most components last 15–20 years. The compressor is the costliest individual part to replace (£800–£2,000 out of warranty). Insurance-backed workmanship warranties typically cover replacements for 6–10 years.
Payback against your current heating
For a typical home replacing a working gas boiler:
- Net install cost: £4,000 after BUS.
- Annual saving on Cosy Octopus tariff vs gas: £200–£400.
- Payback period: 10–20 years.
For an oil/LPG household replacing a working boiler:
- Net install cost: £3,000 after July 2026 £9,000 BUS.
- Annual saving (oil at 8–10p/kWh of heat vs heat pump at 5p): £800–£1,500.
- Payback period: 3–6 years.
Payback is much faster for oil/LPG replacements than gas. If you're on oil or LPG and considering a heat pump, the maths is unusually strong.
See heat pump vs gas boiler for the full TCO comparison.
Frequently asked questions
What's the cheapest heat pump I can get installed in the UK?
About £500–£1,000 net cost for an Octopus Cosy 6 (Daikin platform) install in a small, suitable home with the £7,500 BUS deducted. For most typical homes, expect £2,500–£5,500 net after grant.
Why are quotes so different from each other?
Three reasons: brand markup, install complexity (radiator changes, cylinder location), and installer business model (in-home sales vs online quoting). The variance is genuinely 30–50% between cheapest and most expensive on identical specs. Get at least three MCS-certified quotes.
Will the BUS grant amount change again?
The July 2026 £9,000 oil/LPG uplift is confirmed (subject to final Ofgem v5 installer guidance). No further changes are announced. The air-to-air uplift from £2,500 to £7,500 is under consultation but unconfirmed.
Can I install a heat pump myself to save money?
No, not if you want the BUS grant or any standard insurance-backed warranty. The grant requires MCS-certified installation. DIY install also voids the manufacturer warranty on most heat pump brands.
What's the cheapest brand?
Samsung EHS Mono Gen7 typically sits at the bottom of the price range; Grant Aerona3 close behind. Mitsubishi Ecodan and Vaillant aroTHERM Plus sit at the top. Octopus Cosy 6 (Daikin platform) is competitively priced via Octopus's subsidy model.
Is the install messy?
Less than people fear. Most installs take 3–5 days. The dirtiest part is replacing radiators (one room at a time). Outdoor unit installation is mostly external work. Decent installers leave the house tidier than they found it.
Sources
- BUS guidance — Ofgem
- BUS — Energy Saving Trust
- BUS budget increase April 2026 — GOV.UK
- 0% VAT on energy-saving materials — GOV.UK
- Nationwide Green Additional Borrowing
- Halifax Green Living Offers
Page changelog
- 19 May 2026 — Initial publication.
See your specific payback maths
Our calculator uses your home's current fuel use and runs all four tariff scenarios — including the July 2026 £9,000 uplift if you're on oil or LPG.
Try the running cost calculator →