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What a heat pump really costs after the £7,500 grant

Photo of Danny Whitfield, heating and energy writer

Written by Danny Whitfield

Heating and energy writer · Last updated 13 July 2026

Checked against GOV.UK: 10 July 2026 · Last verified: 13 July 2026

A typical air source heat pump installation in the UK costs £10,000 to £14,000 before any grant. Deduct the £7,500 Boiler Upgrade Scheme grant and you pay roughly £2,500 to £6,500. Oil and LPG heated homes get £9,000 off instead from 21 July 2026, cutting the bill to £1,000 to £5,000.

Those are honest ranges, not the lowball figures some lead-gen sites use to get your phone number. Below are worked examples by house type, what pushes a quote to the top of the range, and where a heat pump beats a gas boiler on running costs.

After-grant cost by house type

Air source heat pump costs by house type, before and after the £7,500 grant
House typeTypical systemBefore grantAfter £7,500 grantWatch for
2-bed terrace5 to 8 kW unit£9,500 to £11,500£2,000 to £4,000Often no radiator changes needed at all.
3-bed semi8 to 12 kW unit£11,000 to £13,500£3,500 to £6,000Budget for 2 or 3 radiator upgrades.
4-bed detached12 to 16 kW unit£13,000 to £16,500£5,500 to £9,000Larger cylinder and more radiator work.

Ranges reflect installer quotes gathered across England and Wales, first half of 2026. Grant figure checked against GOV.UK: 10 July 2026

Worked example: a 3-bed semi in Leeds

  • 10 kW air source heat pump, supplied and installed: £8,900
  • New 210-litre hot water cylinder: £1,400
  • 3 radiator upgrades and pipework: £1,700
  • Total before grant: £12,000
  • Boiler Upgrade Scheme grant: −£7,500
  • You pay: £4,500

For context, a like-for-like gas boiler swap on the same house runs £2,500 to £3,500. The gap between the two has narrowed to roughly £1,000 to £2,000, which running-cost savings and the boiler's shorter lifespan can close over the years you own the house.

What pushes a quote up

  • Radiator changes. The big one. Heat pumps run cooler than boilers, so undersized radiators need swapping. Each is £150 to £400 fitted.
  • No existing cylinder. Combi boiler homes need a hot water cylinder added, £1,200 to £1,800 including the airing cupboard carpentry.
  • Three-phase or long pipe runs. Rare in ordinary homes, expensive when they apply.

Running costs: the question behind the question

A modern air source heat pump delivers around 3 units of heat per unit of electricity. Electricity costs 3 to 4 times more than gas per unit, so on a standard tariff the running costs land close to a gas boiler. Two things tip the balance: a properly designed system (insist on a full room-by-room heat loss calculation) and a heat pump tariff with cheap off-peak electricity. Get both and most homes save £100 to £300 a year against gas.

If the numbers still look steep, check whether you qualify for a route that pays more than £7,500. Our heat pump grants comparison covers ECO4 and the council-run Warm Homes: Local Grant, both of which can fund the entire job. Oil and LPG households should read the £9,000 uplift guide before getting quotes.

Your questions, answered

How much does a heat pump cost in the UK after the grant?
Roughly £2,500 to £6,500 for a typical air source heat pump once the £7,500 Boiler Upgrade Scheme grant is deducted. Homes heated by oil or LPG get £9,000 off between 21 July 2026 and 31 March 2027, bringing the after-grant cost down to £1,000 to £5,000.
Why do heat pump quotes vary so much?
Radiator changes are the biggest swing. A heat pump runs at lower temperatures than a gas boiler, so some homes need larger radiators, which can add £1,000 to £3,000. Hot water cylinder work, pipework and the size of the unit itself account for the rest.
What are heat pump running costs vs a gas boiler in the UK?
Broadly similar for a well-installed system. A heat pump produces around 3 units of heat per unit of electricity, and electricity costs roughly 3 to 4 times more than gas per unit, so the two often net out. A well-designed system on a heat pump tariff can undercut gas; a badly designed one can cost more.
Is a ground source heat pump worth the extra cost?
Rarely for an ordinary home. Ground source installations run £18,000 to £30,000 before the grant because of the ground works, against £10,000 to £14,000 for air source. The efficiency gain seldom repays the difference unless you have land and high heat demand.
Can the grant cover the whole cost of a heat pump?
Not through the Boiler Upgrade Scheme, which is a fixed £7,500 or £9,000. But ECO4 (benefits-linked) and the Warm Homes: Local Grant (income under £36,000, EPC D-G) can fund the entire installation for qualifying households.