Heat Pump Installation Grants

Air source heat pump costs after the grant

Real 2026 installed prices, minus the £7,500 Boiler Upgrade Scheme, by house type — with the cylinder, radiator, and design costs that cheap headlines leave out.

The honest headline

A properly specified air source heat pump installation in 2026 costs between £8,000 and £16,000 before support for the large majority of UK homes, with £11,000–£14,000 the crowded middle of the market. Subtract the £7,500 Boiler Upgrade Scheme grant — deducted from the quote upfront, with 0% VAT until 31 March 2027 — and most households pay £3,500 to £8,500. That range is wide because houses are: a modern, well-insulated semi with recent radiators sits at the bottom, a draughty four-bed Victorian needing emitter upgrades sits at the top.

What you'll pay, by house type

For context, a like-for-like gas boiler replacement with a cylinder and some radiator work runs £3,000–£5,500 in 2026. The grant has pushed the standard semi-detached heat pump into the same financial conversation — which is precisely what it was designed to do.

What a complete quote must include

The unit itself is only 40–50% of the job. A quote you can trust itemises: the outdoor unit and its base or brackets; a hot water cylinder (most boiler-replacing installs need one — £800–£1,500 installed, and finding it a home in an airing cupboard or loft is part of the design); radiator upgrades where the room-by-room heat loss calculation demands them (£150–£350 per radiator); system flushing, new controls, and any pipework upsizing; commissioning, MCS registration, and the DNO notification for the electrical connection. If a quote is silent on the heat loss calculation, it is not a design — it is a guess wearing one.

How to keep the number at the low end

Three legitimate levers. Compare two or three MCS quotes — the spread on identical houses regularly hits £2,000, and the installer guide covers how to compare like for like. Time the work outside the autumn rush, when diaries are loose and pricing keener. And ask each installer to model running costs at your actual tariff as part of the quote — it costs nothing, exposes lazy design at 55°C flow temperatures, and tells you which firm is engineering for efficiency rather than for a quick fit. What does not work: skipping the cylinder or radiator work to save capital. The running-costs page shows why an efficient install recovers those items inside a few winters.

Ground source instead?

If you have the land or the project scale for it, ground source delivers higher year-round efficiency for a higher upfront cost — the same £7,500 grant applies. The GSHP cost page runs those numbers, and the eligibility page confirms the conditions both technologies share.

ASHP COST FAQS

Air source costs — the questions behind the quotes

Why do air source heat pump quotes vary so much for similar houses?

Four drivers explain most of the spread: how many radiators need upsizing for lower flow temperatures (anywhere from none to ten), whether a hot water cylinder must be added and where it can physically go, the heat pump brand and size specified, and how carefully the installer has done the room-by-room heat loss calculation. A cheap quote that skips radiator changes often becomes an expensive system to run — the efficiency lives in those details.

Is the £7,500 deducted before or after VAT?

The arithmetic is simple because VAT is 0% on heat pump installations until 31 March 2027. Your quote should show the full installed price, then the £7,500 BUS deduction, leaving the balance you pay. There is no VAT line to argue about until the zero rate expires.

What does the typical three-bed semi actually end up paying?

The most common outcome we see in 2026: a full installed price of £12,000–£14,000 for an 8–10 kW system with a cylinder and three or four radiator upgrades, minus £7,500, leaving £4,500–£6,500 to pay. Straightforward properties with modern radiators land lower; solid-wall homes needing more emitter work land higher.

Are running costs included in these figures?

No — these are installation costs only. Running costs depend on your tariff and the system’s seasonal efficiency, and they are the subject of our dedicated running-costs comparison against gas, oil, LPG, and electric heating. The short version: well-installed systems cost about the same as gas to run on standard tariffs and less on heat-pump tariffs.

Can I finance the post-grant balance?

Yes. Most established installers offer finance on the balance, several banks run green home improvement loans at preferential rates, and some mortgage lenders offer further-advance products for energy upgrades. A £5,500 balance over five years lands in the £100-a-month region depending on rate — worth comparing against the boiler replacement you would otherwise eventually buy.

Related Grant & Energy Guides

North of the border the funding works differently — our Scottish guide covers Scotland heat pump grants.

Welsh households can find Nest scheme detail and BUS guidance under heat pump grants in Wales.

Many heat pump owners cut their running costs further with PV — start with government grants for solar panels.

Households on qualifying benefits may get a heat pump fully funded — see the ECO4 application guide.