How much does an Air Source Heat Pump cost?

In the UK, the cost of an Air Source Heat Pump (ASHP) installation varies based on factors like property size, type of heat pump, and installation complexity. Here’s a detailed breakdown of the costs involved:

1. Purchase and Installation Costs

• ASHP Unit: The price for the air source heat pump unit itself ranges from around £4,000 to £10,000 for a typical domestic system. Smaller systems for flats or compact homes are on the lower end, while larger or more advanced models for bigger properties are on the higher end.

• Installation Costs: Installation in the UK can range from £3,000 to £7,000, depending on factors like the complexity of the installation, the need for adjustments to the current heating system, and regional labour costs.

• Total Estimate: For most UK homes, the combined cost of the unit and installation usually falls between £7,000 and £15,000. Larger homes, more complex setups, or high-spec systems can cost more.

2. Additional Costs

• Hot Water Cylinder: If the ASHP will provide domestic hot water, a compatible hot water cylinder may be required. This can add an additional £500 to £2,000 to the overall cost, depending on the cylinder type and capacity.

• Radiators or Underfloor Heating: ASHPs are most efficient with low-temperature heating systems, such as underfloor heating or oversized radiators. Retrofitting these in an existing property can cost from £1,000 to £5,000, based on the property’s size and layout.

• Electrical Work: In some cases, electrical upgrades may be necessary to handle the heat pump’s power requirements, adding £500 to £1,000.

In the UK, several government and local authority grants are available to support the installation of air source heat pumps (ASHPs). These incentives aim to promote energy efficiency and reduce carbon emissions by making renewable heating more affordable for households. Here are the main options:

1. Boiler Upgrade Scheme (BUS)

• Grant Amount: £7,500

• Eligibility: This grant is available to households and small businesses in England and Wales. The property must be privately owned or privately rented, and the ASHP must replace an existing fossil fuel heating system (such as gas, oil, or direct electric heating). For more information, click here. 

• How to Apply: Homeowners work with a certified installer who applies for the grant on their behalf. The installer deducts the grant amount from the installation cost, so the homeowner pays the reduced price.

• Additional Requirements: The property may need an Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation, ensuring that the home is adequately insulated for the ASHP to work efficiently.

2. ECO4 Scheme (Energy Company Obligation)

• Support Type: This scheme offers subsidized or free energy efficiency improvements, including ASHPs, to eligible low-income households or those on certain benefits.

• Eligibility: ECO4 is open to homeowners and tenants (with landlord permission) who qualify through means-tested benefits or meet other eligibility criteria. For more information click here.

• How to Apply: Applications are typically made through participating energy suppliers or approved installers, who carry out the installations with funding from the scheme.

• Additional Support: Besides ASHPs, ECO4 can cover other home efficiency measures like insulation, making it suitable for comprehensive upgrades.

3. Home Energy Scotland Loan and Cashback Scheme (Scotland)

• Support Amount: Up to £7,500 in interest-free loans and £7,500 cashback for ASHPs, with an additional £1,500 available for rural properties.

• Eligibility: Homeowners in Scotland are eligible for this loan and cashback combination, intended to help with the upfront costs of renewable heating systems. For more information click here.

• How to Apply: Homeowners apply through Home Energy Scotland, and the funding can be used for ASHPs, insulation, and other energy-saving measures. Approval is required before installation begins.

Want to find out more? Click here for our Blog on the most popular Air Source Heat pump models in the UK. 

Thinking about an Air Source Heat Pump for your home?

Talk to one of our highly accredited installers for more bespoke advice for your home.