Air source heat pump costs

When it comes to running your home, we all want to make the best decisions we can. No doubt that’s how you’ve ended up here. So why are heat pumps such a hot topic?

Well for one, heat pumps are much more energy efficient and eco-friendly than traditional boilers.

Instead of burning fossil fuels like gas, they use electricity to extract the naturally occurring heat from our surroundings, keeping your home consistently cosy in the colder months without the carbon footprint. And they can even cool your home in the summer, too.

A big reason that more people are swapping their traditional boilers for heat pumps is they can save money in the long run. But installing an entirely new heating system has to be expensive, right? Well, not necessarily.

With the £7,500 government grant available in the UK (subject to eligibility) to help with upfront costs, local funding schemes and support for lower-income households, you may find it’s actually cheaper to get a new heat pump than to replace your old boiler.

But let’s get into the specifics: in this article, we’ll talk through everything you need to know about buying and running a home heat pump, so you can decide if it’s right for you.

There are three main types of heat pump:

Air source heat pump

The most popular and practical option for most homes, these extract heat from the outside air, even when it’s cold.

Ground source heat pump

The most efficient but initially expensive option, these extract heat from the earth using a network of underground pipes.

Water source heat pump

These also use a network of pipes to extract heat from a nearby body of water like a river or lake, so they’re only suitable in certain rarer instances.

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What is the typical cost to buy an air source heat pump?

An air source heat pump for both heating and hot water can cost anywhere between £3000 and £15,000. But every home has different needs, and it’s worth considering the cost of installation.

Air source heat pumps

The average cost of an air source heat pump for a three-bedroom home is around £12,000, including installation.

Water source heat pumps

Water source heat pumps can come in anywhere from £6,000 to £11,000, but that’s a very rough estimate. As you might imagine, the cost of installation can vary a lot based on the amount of work and equipment involved.

Ground source heat pumps

The most expensive of the three, the typical cost of a ground source heat pump is, £18,000 to £35,000 depending on how the pipework is installed.

Typically, the bigger the home, the bigger the heat pump needs to be. And more powerful heat pumps do come at a higher price.

You may also want to invest in other home improvements like larger radiators that work better with heat pumps, or better insulation and draught proofing. As making your home more efficient all round, they could be the secret to serious savings in the longer term.

It's a lot to think about. But you don’t need to do all the number-crunching yourself. Get in touch with us and we can arrange a free home survey with one of our trusted installation partners.

You could also reach out to other installers to compare quotes. But just make sure they are certified under the Microgeneration Certification Scheme (MCS). That way, you can trust they know their stuff.

What are the costs associated with installing a heat pump?

There are a few reasons why heat pump installation costs can be so different from home to home.

Complexity of installation

Water and ground source heat pumps need pipework that takes time to lay, hence the higher installation costs. Air source heat pumps are self-contained and simpler to install.

Each installation is different. Where is the heat pump going outside? Where is the hot water tank going inside? How difficult is it to connect the two? The answers to these questions will affect the time and cost. But as a ballpark, it usually takes British Gas around five days to install an air source heat pump.

The size of your home

Bigger homes need more powerful heat pumps, which can cost more to install. There’s often more work involved with larger homes, to make sure that heating and hot water reaches every part.

The existing heating system

Depending on your existing heating system, installing a heat pump may involve replacing pipes and radiators, or connecting underfloor heating. The scale of this job depends on the footprint of your home.

Your location

If you’re in a very rural area, your installation cost can be more than the average, as travel time and expenses have to be factored into the installation. In Scotland, you can get an extra grant of £1,500 to cover this added cost. Like most grants, this is subject to certain eligibility criteria.

What are the running costs of air source heat pumps?

Let’s imagine a typical three-bedroom home with a heat pump already up and running. What do the energy bills look like?

Source: The Eco Experts

With a heat pump, the annual bill for heating and hot water comes in at roughly £692.

In this scenario, the annual running cost of a gas boiler is actually higher right now, at £844.94. That’s because, while electricity is still more expensive per unit than gas, heat pumps are far more efficient—so they use much less energy overall. And electricity prices are starting to come down.

Real yearly running costs will be different for everyone, of course. Even how hot you like your showers changes from person to person.

Energy suppliers like British Gas have begun offering lower-rate electricity tariffs to pair specifically with heat pumps, for instance, making them increasingly economical to run.

Heat pumps can last up to 25 years, too – that’s up to 10 years longer than a traditional boiler. And because air source heat pumps have fewer moving parts, they’re less susceptible to wear and tear. So the upkeep costs of heat pumps is where you can find further savings.

What are the average air source heat pump service costs?

It’s important to factor an annual service into your overall running costs. Whether you have a heat pump or traditional boiler, annual servicing ensures it’ll continue to work safely and as efficiently as possible.

According to our friends over at British Gas, an annual boiler service in the UK usually costs around £100, while a heat pump service costs nearer £200. There are monthly payment plans that can make this a little cheaper.

If your heat pump gets an annual checkup, you’ll likely catch any issue long before it turns into an expensive fix and extend the life of your heat pump.

What are the factors that affect heat pump costs?

Size of the air source heat pump system

Bigger homes need more powerful heat pumps and often, more elaborate and expensive installations that mean higher costs upfront.

Energy efficiency of the property

A well-insulated and draught-proofed home will save you money on heat pump running costs. You may want to think about investing in energy-efficient home improvements alongside your heat pump installation.

Heat pump grants and incentives

Thanks to a whole host of government grants, the upfront cost of having a heat pump installed can be significantly cheaper than replacing your old boiler. But more on this below:

What are the regional heat pump cost differences in the UK?

Installation costs

In cities, installation costs can be higher than average, because of the premium price of labour. But costs are often highest in very rural areas because of the added travel time.

Running costs

The cost of electricity varies across the UK, but not by much. Maintenance costs can also vary depending on how much competition there is for your business in the local area.

Grants

While a grant of £7,500 is available across the UK, you may be entitled to an extra £1,500 if you live in rural Scotland(subject to eligibility). And there are various regional schemes you can apply for too.

What heat pump grants and financial incentives are available?

The three main government grants to help with the upfront cost of heat pumps are:

Boiler Upgrade Scheme – Offering homeowners in England and Wales £7,500 towards the cost of replacing a non-renewable heating system—such as a gas boiler, oil boiler, or electric storage heaters—with a heat pump.

Home Energy Scotland grant – The equivalent for Scotland, plus an extra £1,500 if you live in a rural area where installation costs are more expensive.

The ECO4 scheme – Providing lower-income households with further funding for energy-efficiency improvements, including heat pumps.

There are several regional programmes too, such as Nest Wales, Warmer Homes Scotland and the Home Upgrade Grant some local councils in England offer. Read our complete guide to government heat pump grants in the UK for everything you need to know.

The best part about these grants is you don’t have to lift a finger. For the most part, your MCS-certified installer will handle the application for you.

Getting a heat pump with Hive

Heat Pumps are energy efficient, eco-friendly and, if you’re eligible, government funding is also available. And with their longer lifespans and simpler maintenance, they can save you a pretty penny in the long run.

Want to find out more about heat pumps or arrange a free home survey?

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