Heat Pump Installation Cost UK 2026: What Tradespeople Charge and Why
Heat pump installations range from £8,000 to £20,000 in the UK. Here's what drives the price, what the Boiler Upgrade Scheme covers, and what tradespeople actually charge in 2026.
Written by Tom Ellis · Senior Trades Editor
Last updated: 14 August 2026
Quick Answer
Heat pump installation in the UK costs between £8,000 and £20,000 for an air source heat pump (ASHP), and £15,000 to £35,000 for a ground source heat pump (GSHP). The Boiler Upgrade Scheme (BUS) provides a £7,500 government grant for eligible properties, bringing the typical out-of-pocket cost for an ASHP down to £3,000–£12,500. Installation takes 2–5 days for air source and 1–3 weeks for ground source. Costs vary significantly by property size, existing heating infrastructure, and installer.
What Is a Heat Pump and Why Are Costs So Variable?
A heat pump extracts heat from the air (air source) or ground (ground source) and uses it to heat your home — typically 3–4 times more efficiently than a gas boiler. But the installation complexity varies enormously depending on your property.
A new-build with underfloor heating and good insulation is relatively cheap to retrofit with a heat pump. A Victorian terrace with solid walls, single-glazed windows, and radiators sized for a gas boiler will require significant preparatory work — insulation upgrades, radiator replacements, and potentially floor or wall improvements — before a heat pump will run efficiently.
This preparatory work is often excluded from headline "heat pump installation" quotes and can add £3,000–£15,000 to the total project cost.
Air Source Heat Pump Costs (ASHP)
Air source heat pumps are the most common type installed in UK homes. They work by extracting heat from outdoor air, even in cold weather.
Supply and install costs
| Property size | ASHP system cost (supply & install) |
|---|---|
| Small (1–2 bed) | £8,000–£11,000 |
| Medium (3 bed) | £10,000–£14,000 |
| Large (4–5 bed) | £13,000–£20,000 |
These figures cover the heat pump unit itself, installation labour, a hot water cylinder (usually required to replace a combi boiler), pipework modifications, electrical connection, and commissioning.
What's often not included
- Radiator upgrades: Heat pumps run at lower flow temperatures (40–50°C vs 70–80°C for a gas boiler). Existing radiators may be undersized. Upgrading to larger radiators costs £200–£600 per radiator — potentially £1,500–£3,000 for a whole house.
- Insulation improvements: A heat pump in a poorly insulated home runs expensively. Insulating a cavity wall costs £400–£600; a loft, £300–£500. Both are often recommended before installation.
- Electrical upgrades: If your consumer unit needs upgrading or a higher-rated supply is required, add £500–£1,500.
- Planning permission: Usually not required for ASHP in England under permitted development, but check local restrictions and conservation area rules.
Ground Source Heat Pump Costs (GSHP)
Ground source heat pumps extract heat from the ground via buried pipes (horizontal trenches or vertical boreholes). They're more efficient than air source but significantly more expensive to install.
| System type | Typical cost (supply & install) |
|---|---|
| Horizontal ground loop (small–medium property) | £15,000–£25,000 |
| Vertical borehole (where space is limited) | £20,000–£35,000 |
The higher cost reflects the ground loop installation — horizontal systems require significant garden excavation, while boreholes require specialist drilling equipment and significantly more time on site.
Ground source systems are more suitable for rural properties with land and are rarely cost-effective for urban terraced houses.
The Boiler Upgrade Scheme (BUS): £7,500 Grant
The UK government's Boiler Upgrade Scheme provides:
- £7,500 for air source heat pumps
- £7,500 for ground source heat pumps
To qualify, the property must:
- Be in England or Wales (Scotland has separate schemes)
- Have a current EPC (Energy Performance Certificate) with no outstanding recommendations for loft or cavity wall insulation
- Have the installation carried out by a MCS-certified heat pump installer
The grant is applied by the installer at the point of installation — you don't claim it yourself. You pay the net cost after the grant has been deducted from your invoice.
Important: The installer must be registered with MCS (Microgeneration Certification Scheme). Not all heating engineers hold MCS certification. When getting quotes, always confirm MCS status upfront.
What Tradespeople Actually Charge: Labour Rates
Labour rates for heat pump installation in 2026:
- MCS-certified heat pump engineer: £350–£550 per day
- Plumber/heating engineer (supporting work): £250–£400 per day
- Electrician (connection and controls): £280–£400 per day
A typical 3-bedroom ASHP installation involves 2–3 engineers over 2–4 days — so labour alone runs £1,500–£4,500 before materials.
Installers typically quote as a fixed price for the complete job rather than day rates, which protects you from labour overruns.
Running Costs vs Gas Boiler
A heat pump costs more to run per unit of energy (electricity costs more than gas), but it produces 3–4 units of heat per unit of electricity consumed (coefficient of performance, or COP). The net result:
- Well-insulated home with good installer setup: heat pump running costs broadly similar to or lower than a new gas boiler
- Poorly insulated home with undersized radiators: heat pump running costs can be significantly higher
This is why the preparatory work matters. A heat pump installed correctly into a well-prepared home delivers the promised savings. Rushed installations in unmodified properties consistently underperform.
How to Get an Accurate Quote
When approaching heat pump installers:
- Ask for an MCS-certified installer — required for BUS grant eligibility
- Request a heat loss calculation for your property (should be provided as part of the survey, not guessed)
- Ask what's included and excluded — specifically radiators, hot water cylinder, and electrical work
- Ask whether insulation upgrades are recommended before installation
- Confirm whether the quote includes BUS grant administration (it should)
- Get at least 3 quotes — heat pump pricing varies significantly between installers
Sleepless Tradesman's AI remote quoting tool lets homeowners submit photos, measurements, and job details before a site visit — allowing engineers to prepare accurate preliminary estimates and reduce wasted visits for jobs that won't proceed.
Frequently Asked Questions
How long does a heat pump installation take? An air source heat pump typically takes 2–4 days for a straightforward installation in a prepared home. If radiator upgrades, insulation work, or electrical changes are also needed, allow 1–2 weeks total.
Can a heat pump replace my combi boiler? Yes, but it usually requires adding a hot water cylinder, as heat pumps don't provide instant hot water the way a combi boiler does. This adds cost and requires space — typically a cupboard of at least 1m² for a 200-litre cylinder.
Is a heat pump suitable for my property? ASHPs work best in well-insulated homes with good double glazing. They can work in older properties but require more preparatory investment. A heat loss survey by a qualified engineer will determine suitability and the correct system size.
Will my electricity bill increase significantly? Electricity consumption increases, but a correctly specified and installed heat pump should offset this with higher efficiency. The exact outcome depends on your current energy use, insulation level, and the system's COP. Expect a payback period of 8–15 years in most UK properties at current energy prices.
What maintenance does a heat pump need? Annual servicing by a qualified engineer costs £100–£200. Filter cleaning and refrigerant checks are the main tasks. Heat pumps are generally low-maintenance compared to gas boilers.
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