Home Heat Pump Guide

How Much Does a Heat Pump Cost to Buy and Install?

When you ask "how much does a heat pump cost?", the answer you usually get is a range so wide it is almost useless — "£8,000 to £35,000." That does not help you budget. What you actually need is a breakdown of every individual cost, so you can see where the money goes and understand why your specific quote might be at the lower or upper end.

This guide itemises every cost involved in buying and installing a heat pump in the UK. No vague ranges — just a clear list of what you will pay for, with 2026 prices.

Part 1: The Cost of Buying a Heat Pump

The heat pump unit is the single most expensive component, but it is typically only 30-45% of the total project cost. Here is what the equipment costs.

Air Source Heat Pump Unit

An air source heat pump consists of an outdoor unit (containing the compressor, fan, and evaporator) and often an indoor controller or hydro-box. Prices vary by brand, output capacity, and features:

  • 5-6 kW (well-insulated 2-bed): £3,000-£4,500
  • 7-9 kW (average 3-bed): £4,000-£6,500
  • 10-12 kW (larger 3-4 bed): £5,500-£8,000
  • 14-16 kW (large or poorly insulated 4-5 bed): £7,000-£10,000

Monobloc units (where all refrigerant components are in the outdoor unit) tend to be slightly cheaper than split systems (where refrigerant pipes connect indoor and outdoor units). Most UK residential installations now use monobloc systems.

Ground Source Heat Pump Unit

Ground source units are indoor-only (no outdoor unit) and tend to be slightly more expensive than air source units at the same output:

  • 5-8 kW: £5,000-£7,000
  • 8-12 kW: £6,000-£9,000
  • 12-16 kW: £8,000-£12,000

What Is Included with the Heat Pump Unit?

Most heat pump units come with:

  • The heat pump itself (outdoor unit for ASHP, indoor unit for GSHP)
  • Internal controller or display unit
  • Basic temperature sensors
  • Installation manual and commissioning instructions

What is NOT usually included (and costs extra):

  • Hot water cylinder
  • Buffer tank (if needed)
  • External pipework and fittings
  • Radiators or underfloor heating
  • Controls beyond the basic unit
  • Concrete base or mounting brackets

Part 2: The Cost of Installation

This is where the costs add up. Each item below is an individual line on a proper installation quote.

Hot Water Cylinder

Almost every heat pump installation requires a hot water cylinder. If you are replacing a combi boiler (which heats water on demand with no cylinder), this is a new addition. If you have an existing cylinder, it may be reusable — but a heat pump-compatible cylinder with a larger coil is preferable.

  • 170-200 litre cylinder (1-3 people): £800-£1,500
  • 250-300 litre cylinder (3-5 people): £1,200-£2,500
  • Heat pump-specific cylinder (pre-plumbed with controls): £1,500-£3,000

If you already have a suitable unvented cylinder with an adequate coil, this cost is eliminated.

Buffer Tank

Not always required, but recommended for many installations. A buffer tank prevents the heat pump from short-cycling (turning on and off too frequently) and protects the compressor.

  • 30-50 litre buffer tank: £200-£500
  • 100+ litre buffer/thermal store: £400-£900

Some heat pump models have built-in buffer capacity and do not need a separate tank.

Radiator Upgrades

Heat pumps operate at lower flow temperatures than boilers (35-50°C vs 60-70°C). This means some existing radiators may be too small to heat the room adequately. A heat loss calculation for each room determines whether upgrades are needed.

  • No upgrades needed: £0 — if your existing radiators are already oversized or the house is well insulated
  • A few radiators need upsizing: £200-£500 per radiator (supply and fit). Typically 3-5 radiators need upgrading, totalling £600-£2,500.
  • Most or all radiators need replacing: £3,000-£6,000 for a full house of 8-12 radiators

In practice, most installations fall in the middle — a few radiators need upgrading, not the full set. See our radiator guide for detail.

Pipework Modifications

The pipework connecting the heat pump to your heating system may need modification. This includes:

  • Primary pipework (heat pump to cylinder/heating circuit): £500-£2,000 depending on routing and distance
  • External pipework (ASHP outdoor unit to building): £200-£800 depending on distance and insulation requirements
  • Flow and return connections to existing heating circuit: £300-£800
  • Condensate drain (ASHP): £50-£200

Ground Loops (Ground Source Only)

The most significant additional cost for ground source installations:

  • Horizontal straight loops: £3,000-£6,000 (trenching, pipe, backfill, manifold)
  • Horizontal slinky coils: £4,000-£7,000
  • Vertical boreholes (1-2 holes): £8,000-£15,000 (mobilisation, drilling, grouting, pipe)

Electrical Work

A heat pump requires a dedicated electrical supply. The work typically includes:

  • Dedicated circuit from consumer unit: £200-£500
  • New MCB/RCBO in consumer unit: £50-£100
  • Electrical supply upgrade (if current supply insufficient): £500-£3,000. This applies mainly to older properties with small supply (60-80 amp). Most modern properties have adequate supply.
  • Controls wiring (room thermostats, zone valves, outdoor sensor): £200-£500

Controls and Smart Thermostats

  • Basic room thermostat: £50-£150
  • Smart thermostat with weather compensation integration: £150-£400
  • Multi-zone control system (upstairs/downstairs): £300-£800
  • Outdoor temperature sensor (for weather compensation): Often included with the heat pump. If not: £30-£80.

Concrete Base (ASHP Only)

The outdoor unit needs a stable, level base:

  • Concrete pad (standard): £150-£400
  • Anti-vibration mounts: £50-£150
  • Wall-mounted bracket (alternative to ground base): £100-£300

Sundries and Ancillaries

The small items that add up:

  • Expansion vessel: £50-£100
  • Filling loop and system filter: £50-£150
  • Pipe insulation: £100-£300
  • Glycol (ground source): £80-£200
  • Fittings, valves, and fixings: £100-£300

Labour

The largest single installation cost after equipment:

  • Air source installation labour (2-4 days, 1-2 engineers): £1,500-£3,500
  • Ground source installation labour (3-7 days, 1-2 engineers + ground workers): £2,500-£5,000

Labour rates vary by region. London and the South East are typically 20-30% more expensive than the Midlands, North, and Wales.

MCS Registration and Commissioning

  • MCS registration and documentation: £200-£400
  • System commissioning (testing, balancing, setting controls): £200-£500
  • Building regulations notification: £50-£100 (usually included in the MCS process)

Real-World Example: 3-Bed Semi-Detached House

Here is a realistic itemised quote for an air source heat pump installation in a typical 3-bed semi replacing a gas combi boiler:

  • 9 kW air source heat pump unit: £5,500
  • 210-litre hot water cylinder: £1,400
  • 40-litre buffer tank: £350
  • Radiator upgrades (3 radiators): £1,050
  • Primary and external pipework: £1,200
  • Electrical work (dedicated circuit, controls wiring): £450
  • Smart thermostat with weather compensation: £250
  • Concrete base and anti-vibration mounts: £300
  • Sundries (expansion vessel, filter, insulation, fittings): £400
  • Labour (3 days, 2 engineers): £2,400
  • MCS registration and commissioning: £500
  • Total before grant: £13,800
  • BUS grant: -£7,500
  • Total after grant: £6,300

This is a realistic mid-range example. Simpler installations can come in under £10,000 before the grant; complex ones can exceed £16,000.

What Makes an Installation Expensive?

Understanding cost drivers helps you anticipate where your quote will fall:

Expensive Factors

  • No existing hot water cylinder: Installing a new cylinder and associated pipework adds £1,500-£3,000
  • Extensive radiator replacement: A full set of new radiators can add £3,000-£6,000
  • Difficult access: Narrow side passages, rear access only, or multi-storey properties increase labour time and cost
  • Electrical supply upgrade: If your property needs a supply upgrade from the DNO, this can add £500-£3,000
  • Large or poorly insulated property: A bigger heat pump, bigger cylinder, and more radiator upgrades all cost more
  • Ground source boreholes: The drilling cost alone can be £8,000-£15,000

Cheap Factors

  • Replacing a system boiler with existing cylinder: If the cylinder is compatible, this saves £1,000-£2,500
  • Adequate existing radiators: No upgrades needed, saving £600-£6,000
  • Easy access: Ground floor, clear outdoor space, short pipe runs
  • Well-insulated property: Smaller heat pump needed, fewer radiator upgrades
  • Horizontal ground loops (GSHP): Much cheaper than boreholes

Hidden Costs to Watch For

Some costs catch homeowners by surprise because they are not always included in initial quotes:

  • Scaffolding: If the outdoor unit needs to be placed in a difficult location, scaffolding hire can add £200-£600
  • Asbestos removal: Older properties may have asbestos pipe lagging or flue components that need professional removal. Cost: £200-£1,000
  • Making good: Patching walls, ceilings, or floors after pipework routing. Usually minor (£100-£300) but not always included in the heating quote
  • Garden reinstatement (GSHP): After ground loop installation, your garden may need re-turfing or re-landscaping. Cost: £300-£1,500
  • Planning application (if required): Listed buildings or conservation areas may need planning permission. Application fee: £200-£300 plus any required reports
  • EPC renewal: If your existing EPC has expired or does not meet BUS requirements, a new one costs £60-£120

How to Read a Heat Pump Quote

When you receive a quote, check that it includes:

  • The heat pump unit (specified by model and kW output)
  • Hot water cylinder (specified by capacity)
  • All pipework and connections
  • Electrical work
  • Controls and thermostats
  • Any radiator upgrades (specified by room)
  • Labour for the full installation
  • MCS registration and commissioning
  • Building regulations notification
  • The BUS grant deduction
  • VAT (heat pump installations qualify for 0% VAT)

If any of these are missing, ask the installer to clarify. A good quote should be fully itemised so you can see exactly what you are paying for.

Get quotes from vetted installers through our free quote service.

Frequently Asked Questions

Why does installation cost more than the heat pump itself?

Because the installation involves significant skilled labour (2-4 days of qualified engineer time), additional components (cylinder, pipework, controls), and potentially modification of your existing heating system. The heat pump unit is a mass-produced product; the installation is bespoke to your property.

Is VAT charged on heat pump installations?

Heat pump installations in the UK currently qualify for 0% VAT (reduced from the standard 20%). This applies to both the equipment and the labour when installed by a VAT-registered business as part of an energy-saving measure. This zero rate is in effect until at least March 2027.

Can I buy the heat pump myself and have it installed?

Technically yes, but it is rarely advisable. Most MCS-certified installers prefer to supply and install as a package — this ensures compatibility, simplifies the warranty, and allows them to take responsibility for the complete system. If you supply your own unit, some installers will not guarantee the installation, and the BUS grant may not apply.

What is the cheapest possible heat pump installation?

The cheapest scenario is a small air source heat pump (5-6 kW) in a well-insulated 2-bed house, replacing a system boiler with an existing compatible cylinder and adequate radiators. Total cost: approximately £8,000-£9,000 before grant, or £500-£1,500 after the BUS grant. This is uncommon but possible.

Do I need to pay anything upfront?

Most installers require a deposit — typically 10-30% of the total cost — when you confirm the order. The balance is due on completion. The BUS grant is applied by the installer, so you pay the after-grant amount (the installer claims the grant from the government). Some installers offer staged payments for larger projects.

Are there any ongoing costs after installation?

Annual servicing (£100-£200/year) is recommended. Beyond that, the main ongoing cost is electricity to run the heat pump. There are no fuel delivery costs, no gas safety certificate requirements, and maintenance costs are generally lower than for a boiler.