How Much Does a Heat Pump Cost in 2026?

One of the most common questions we hear is: how much will a heat pump actually cost me? The answer depends on your property, but we can give you a clear picture.

A typical air source heat pump installation in the UK costs between £10,000 and £18,000 before any grants. This includes the heat pump unit itself (£3,000-£7,000), the hot water cylinder (£800-£2,000), installation labour (£3,000-£5,000), and ancillary works such as pipework, electrical upgrades, and controls.

The good news is that the Boiler Upgrade Scheme (BUS) provides a £7,500 grant for eligible homeowners, which is deducted directly from your installer's invoice. That means a typical installation might cost you between £2,500 and £10,500 out of pocket.

At Casa Renewables, our average installation costs between £6,500 and £11,500 after the grant. We provide fully itemised quotes so you know exactly where every penny goes, no hidden fees, no surprises.

Several factors affect the final price: the size of your home, how well insulated it is, whether you need radiator upgrades, and the complexity of the pipework. A well-insulated three-bedroom semi will typically sit at the lower end of the range.

It's also worth considering the long-term savings. Savings depend on the system you are replacing. Households replacing electric storage heaters typically save between £700 and £1,200 a year, while savings against a gas boiler are smaller, the Energy Saving Trust estimates around £260 a year against an older G-rated boiler. We provide a property-specific estimate at survey.