Heat pumps are an increasingly popular solution for heating and cooling homes and businesses in the UK. They offer energy efficiency, lower carbon emissions, and long-term savings. However, the upfront cost of a heat pump can be substantial, and there are several factors to consider beyond just the initial purchase. Here’s a detailed breakdown of all fees and aspects you should be aware of when cost budgeting for a heat pump installation.
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Average heat pumps cost
Air source heat pumps
- Residential properties: £7,000–£14,000
- Commercial properties: £10,000–£30,000+
Ground source heat pumps
- Residential properties: £18,000–£35,000
- Commercial properties: £30,000–£100,000+
Ground source heat pumps are typically more expensive due to the need for extensive groundworks, such as digging trenches or boreholes.
Hybrid heat pumps (combined with existing boilers)
- Residential properties: £5,000–£10,000
- Commercial properties: £8,000–£20,000
Hybrid systems can be a good compromise for properties not suited to a full heat pump setup.
Additional costs to consider
Installation fees
- Residential installation: £2,000–£5,000
- Commercial installation: £5,000–£20,000+
Complex installations, such as those requiring major modifications to existing heating systems or buildings, will naturally be more expensive.
Upgrades to heating systems
Older radiators and pipework may need to be replaced with larger models that can operate efficiently with lower temperature heat pumps.
- Cost of radiator upgrades: £2,000–£4,000 (residential)
- Pipework replacement: £1,500–£3,000 (residential)
- Commercial upgrades: Highly variable; £5,000–£50,000+
Insulation improvements
Because heat pumps operate most efficiently in well-insulated properties, additional insulation is often recommended before installation.
- Loft insulation: £500–£1,500
- Wall insulation: £4,000–£12,000
- Floor insulation: £1,500–£3,000
Electrical upgrades
Heat pumps sometimes require upgrades to the property’s electrical system to handle additional loads.
- Consumer unit (fuse box) upgrade: £500–£1,500
- Wiring upgrades: £500–£2,500
Planning permission and surveys
- Heat loss surveys: £250–£500
- Planning permission applications (if needed): £200–£500
- (Most domestic installations are permitted development, but listed buildings or conservation areas may require permission.)
Running costs
Electricity usage
Heat pumps are very efficient, but they still require electricity to operate.
- Typical residential cost: £500–£1,500 per year
- Typical commercial cost: £2,000–£10,000+ per year This can vary depending on the building size, insulation levels, and local electricity rates.
Maintenance costs
Heat pumps require annual servicing to maintain efficiency and warranty validity.
- Annual service cost: £150–£300 (residential)
- Annual service cost: £300–£1,000+ (commercial, depending on system size)
Government incentives
Boiler upgrade scheme (BUS)
Homeowners and small businesses in England and Wales may qualify for a grant to help cover the cost of a heat pump installation.
- Grant amounts:
- £7,500 towards an air source heat pump
- £7,500 towards a ground source heat pump (Scotland and Northern Ireland have separate schemes, such as the Home Energy Scotland Grant.)
Factors that influence heat pump costs
- Property size: Larger properties require larger (and more expensive) systems.
- System type: Ground source systems are more costly than air source systems.
- Location: Rural areas might have higher installation costs due to transport and access.
- Installer rates: Prices vary depending on installer experience and company size.
- Efficiency requirements: Higher-specification systems designed for maximum efficiency cost more initially but may provide better savings over time.
Summary table – Typical heat pumps cost (2025 UK price guide)
| Type of cost | Residential estimate | Commercial estimate |
|---|---|---|
| Air source heat pump (unit only) | £7,000–£14,000 | £10,000–£30,000+ |
| Ground source heat pump (unit only) | £18,000–£35,000 | £30,000–£100,000+ |
| Installation fees | £2,000–£5,000 | £5,000–£20,000+ |
| Heating system upgrades | £2,000–£7,000 | £5,000–£50,000+ |
| Insulation improvements | £500–£12,000+ | £5,000–£50,000+ |
| Electrical upgrades | £500–£2,500 | £1,000–£5,000+ |
| Running costs (annual) | £500–£1,500 | £2,000–£10,000+ |
| Maintenance (annual) | £150–£300 | £300–£1,000+ |