Last updated: October 2026
In short: a typical air source heat pump costs around £12,000–£13,000 to install in the UK before any grant. A typical PBT Installations system is around £18,000, including a full heat loss design, a new cylinder and any radiator upgrades needed. The government’s Boiler Upgrade Scheme takes £7,500 off, bringing that to around £10,500. If you currently heat with oil or LPG, the grant is £9,000 until 31 March 2027, bringing it to around £9,000. Installations also have 0% VAT until the same date.
Every home is different, so the only way to get an accurate price is a proper survey. This guide explains typical costs, what affects them, and what you get for your money.
Typical installation costs in 2026
| System | Typical installed cost (UK) | After grant / notes |
|---|---|---|
| Air source heat pump | £12,000–£13,000 (UK median £12,908) | Around £5,400 with the £7,500 grant; around £3,900 for oil or LPG homes with the £9,000 grant |
| Air source heat pump (typical PBT Installations system) | Around £18,000 | Around £10,500 with the £7,500 grant; around £9,000 for oil or LPG homes with the £9,000 grant |
| Ground source heat pump (horizontal ground loop) | £18,000–£27,000 | £7,500 grant (£9,000 for oil or LPG homes) |
| Ground source heat pump (borehole) | £27,000–£42,000 | £7,500 grant (£9,000 for oil or LPG homes) |
| Solar panels (4kW system) | £6,500–£8,500 | 0% VAT; no grant |
| Battery storage | £4,000–£12,000+, depending on capacity | 0% VAT; no grant |
| Solar panels with a battery (4kW) | £10,000–£14,000 | 0% VAT; no grant |
Figures are typical UK prices including installation. The air source median is from the government’s Boiler Upgrade Scheme statistics for April to June 2026. Our own typical air source system is around £18,000, including a full room-by-room heat loss design, a heat pump-compatible cylinder and any radiator or pipework upgrades. Your own quote may be higher or lower depending on your home.
What affects the cost of a heat pump?
- Your home’s heat loss. A well-insulated home needs a smaller, cheaper heat pump. We work this out room by room before we size anything.
- Radiators or underfloor heating. Heat pumps run at lower temperatures, so some radiators may need upgrading. Underfloor heating suits heat pumps well, especially in renovations and new builds.
- Hot water cylinder. Most homes need a new, heat pump-compatible cylinder, sized for your household.
- Pipework. Older or undersized pipework may need replacing. Often existing pipes can be kept.
- Where the heat pump goes. A short, simple run from the outdoor unit costs less than a long run or a tricky site.
- Electrics. Some homes need an upgraded supply or consumer unit.
- Period, listed and conservation-area homes. These can need more design work, and sometimes planning or listed building consent.
What’s included in a PBT Installations quote?
- A home survey and a full room-by-room heat loss calculation
- System design, sized to your home rather than guessed
- The heat pump, cylinder and any radiator or pipework upgrades needed
- Installation, commissioning and MCS certification
- Handling your Boiler Upgrade Scheme grant application, with the grant deducted from your quote
- Set-up of your controls, and advice on getting the best from your system
We fit Stiebel Eltron heat pumps, Solarwatt solar panels, Tesla Powerwall and Solarwatt batteries and Victron inverters, and design them to work together as one whole-home system.
Why do heat pump quotes vary so much?
Some quotes are cheap because they skip the heat loss calculation, fit an oversized or undersized heat pump, or leave out radiator upgrades that turn up later as extras. Check that every quote includes a heat loss calculation, the full list of work, and an MCS-certified installer. Our guide on choosing the right installer explains what to look for.
Ways to pay
- Boiler Upgrade Scheme: £7,500 off a heat pump, or £9,000 for oil and LPG homes until 31 March 2027
- 0% VAT: on heat pumps, solar, batteries and insulation until 31 March 2027
- Finance: spread the cost with monthly payments, subject to status
What will it cost to run?
Running costs depend on your home, your electricity tariff and what you’re replacing. Homes moving off oil, LPG or electric heaters usually save the most. A heat pump-friendly tariff, plus solar panels and a battery, can cut costs further. Read how to reduce your heat pump running costs.
Lower running costs and a better energy rating can also make your home more attractive to buyers. Read does renewable technology add value to your home?
Frequently asked questions
Is there a grant for heat pumps?
Yes. The Boiler Upgrade Scheme gives £7,500 off an air source or ground source heat pump in England and Wales, or £9,000 if you currently heat with oil or LPG (until 31 March 2027). We apply for it on your behalf.
Do I need new radiators?
Not always. We check every room as part of the heat loss calculation and only recommend upgrading radiators that are too small to heat the room at heat pump temperatures.
Is a heat pump cheaper than a new boiler?
To install, usually not, even after the grant. To run, a well-designed heat pump can be cheaper, especially if you’re replacing oil, LPG or electric heating, or pair it with solar and a battery.
How do I get an accurate price?
Book a free consultation. We’ll look at your home, talk through your options and give you a clear, itemised quote with the grant and VAT savings shown.
Get your free quote
We install across Cheltenham, Gloucester, Stroud, Cirencester, the Cotswolds and the Forest of Dean. Contact us or call 01242 323923.