The prices in this cost guide are accurate as of 2026*
Homeowners across the UK are increasingly turning to renewable energy to heat their homes. An air source heat pump (ASHP) is a popular, low-carbon alternative to traditional gas boilers. It works by absorbing heat from the outside air to warm your home and hot water.
Understanding the costs involved helps you make an informed decision for your property. This guide breaks down the typical prices for installation, running costs, and potential savings in 2026.
What is the average air source heat pump cost in the UK?
The price of a heat pump system varies depending on your home’s size and insulation levels. A larger home typically requires a more powerful unit, which costs more.
In 2026, the average air source heat pump cost homeowners pay sits between £7,000 and £15,000 before grants. This price usually covers the heat pump unit, a hot water cylinder, and standard installation.
- Small home / flat: £7,000 – £9,000
- Medium home (3-bed): £10,000 – £14,000
- Large home: £14,000 – £20,000+
These figures are estimates. The final price depends on whether you need new radiators or pipework upgrades.
Air to water heat pump prices vs air to air
There are two main types of air source heat pumps. The most common in the UK is the air-to-water system. This connects to your central heating and hot water cylinder.
Air to water heat pump prices are generally higher due to the complexity of the system.
- Air-to-water system: £8,000 – £16,500
Air-to-air systems work like air conditioners. They blow warm air into a room but do not heat water. These are simpler and cheaper to install.
- Air-to-air system: £2,000 – £4,000
What is the cost of air source heat pump installation?
The installation process involves more than just placing a box outside your house. It requires electrical work, plumbing, and often system design.
The cost of labour to install an air source heat pump typically ranges from £1,200 to £3,500. This depends on the complexity of the job.
Factors that influence the heat pump installation cost include:
- New radiators: Larger radiators may be needed to run effectively at lower flow temperatures.
- Insulation: Better insulation keeps running costs down but adds to the upfront project price.
- Pipework: Older microbore pipes might need replacing to ensure good water flow.
What is the cost to run Air source heat pumps?
One of the biggest questions for homeowners is: will this save me money on bills? The cost to run an air source heat pump depends on your electricity tariff and heat demand.
Heat pumps are very efficient. They can turn 1kWh of electricity into 3-4kWh of heat.
- 1-2 bedroom home: £855 per year
- 3-4 bedroom home: £1,205 per year
- 5+ bedroom home: £1,700 per year
If you replace an old G-rated gas boiler, you could save around £290 a year. Savings are much higher if you switch from electric storage heaters, potentially saving over £1,000 annually.
How to reduce costs with the Boiler Upgrade Scheme?
The UK government offers financial support to encourage low-carbon heating. The Boiler Upgrade Scheme (BUS) is a major benefit for homeowners in England and Wales.
You can get a grant of £7,500 towards the cost and installation of an air source heat pump. This is paid directly to your installer, who deducts it from your quote.
With this grant, the net cost of installing a heat pump can drop significantly. Some installations may cost as little as £3,000 to £6,000 after the grant is applied.
Why find a heating engineer on Rated People?
Installing a heat pump is a specialised job. It is not a DIY project. You need a qualified Gas Safe or MCS-certified engineer to ensure the system is safe and efficient.
Rated People helps you connect with trusted local heating engineers who are experienced in renewable technology.
- Verified reviews: Read honest feedback from other homeowners to judge the quality of work.
- Screening: We check tradespeople to give you confidence in who you hire.
- Local experts: Find engineers who know the specific housing stock and regulations in your area.
- Grant eligibility: Many listed specialists can help you access the Boiler Upgrade Scheme grant.
Using a vetted professional ensures your warranty remains valid and your home stays warm all winter.
With Rated People, you have the power to get it done. Find a trusted, local tradesperson today.
