What a heat pump actually costs you after the grant
Last checked 30 September 2026. Grant rates and deadlines change — confirm on GOV.UK before acting.
Every other page here talks about grants. This one talks about the bill.
The rough arithmetic
A typical air source heat pump installation runs somewhere in the region of £10,000 to £13,000 for an average home. After the £7,500 grant, most households are looking at a few thousand pounds of their own money. Larger or poorly insulated homes cost more; small flats on the air-to-air route cost considerably less.
These are indicative ranges, not quotes. Get three quotes from MCS-certified installers, and expect them to vary more than you would think reasonable.
What drives the number up
- Radiator replacement, because heat pumps run at lower flow temperatures than gas boilers.
- A hot water cylinder, if you do not already have one.
- Electrical work, if the consumer unit or supply needs upgrading.
- Poor insulation, which pushes you towards a larger and more expensive unit.
Running costs, honestly
A heat pump uses less energy than a gas boiler, but electricity costs more per unit than gas, so the saving is not automatic. Whether your bills fall depends on your insulation, your tariff and how the system is commissioned. Anyone promising guaranteed savings without seeing your home is guessing.
Where the other schemes fit
If you qualify for the Warm Homes: Local Grant, insulation and heating come from separate funding pots, which is why that route can cover far more of the cost than the Boiler Upgrade Scheme alone.