Heat pump grant and cost (UK): what you’ll pay in 2026

A practical guide to the Boiler Upgrade Scheme (BUS) grant, typical installation costs, and how to check if a heat pump makes sense for your home. Clear UK caveats, realistic examples, and next steps.

  • Understand the current England & Wales grant and who qualifies
  • See estimated costs with and without a grant (plus running-cost factors)
  • Get a simple checklist before you request quotes
Check eligibility & request quotes See grant rules & costs

Estimates only. Grant rules and installer quotes vary by property, location and system design. We cover homeowners and tenants (with landlord consent), not business premises.

Fast answer: what’s the heat pump grant, and how much do heat pumps cost?

In Great Britain, the main government support for homeowners in England and Wales is the Boiler Upgrade Scheme (BUS). It provides an upfront grant towards the cost of installing an eligible air source or ground source heat pump. The grant is applied by your installer and reduces what you pay.

Typical upfront cost (before grant)

Many UK installs are quoted in the several-thousand-pound range. The final price depends on the heat pump size, property heat loss, radiator/pipework upgrades, and whether you need a hot water cylinder.

Grant impact

If you qualify, the BUS grant is taken off the invoice by an MCS-certified installer. You still pay the remaining balance and any non-eligible works.

Running costs

A heat pump’s running cost depends heavily on your insulation, flow temperature, electricity tariff, and the system’s real-world efficiency (seasonal performance).

Quick caveat: Grant availability and rules can change. Scotland and Northern Ireland have different schemes and funding routes. If you live outside England/Wales, jump to FAQs for where to check support.

Key takeaways (UK)

  • Eligibility is property-specific: EPC, insulation, existing heating type and installer design all matter.
  • Quotes vary widely because “the same home on paper” can need different radiator upgrades, cylinders, or electrical works.
  • Cheapest install isn’t always best value: heat-loss assessment, commissioning and controls setup are what make systems comfortable and efficient.
  • Get multiple quotes and ask for the heat loss calculation, emitter sizing, and expected flow temperatures.

Request heat pump quotes (trust-led, whole-of-market)

If you’re exploring a heat pump, the fastest way to get a realistic cost is to compare quotes based on your home’s basics. We’ll use your details to help match you with suitable options and explain what to ask installers so you can compare like-for-like.

What you’ll need: postcode, contact details, and a rough idea of your current heating (gas boiler, oil, electric, LPG). If you have an EPC, that helps — but it’s not required to start.

What “good” looks like in a quote

  • Heat loss calculation (room-by-room or whole-house) and target flow temperature
  • Emitter plan (radiators/underfloor), including which rooms need upgrades
  • Hot water cylinder specification (if needed) and where it will go
  • Controls (weather compensation, room stats) and commissioning steps
  • Clear line items for electrical works, scaffolding, groundworks (if any), and aftercare/warranty

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Boiler Upgrade Scheme (BUS): what it is and how it works

The Boiler Upgrade Scheme is the main grant in England and Wales for replacing fossil-fuel heating with an eligible heat pump. In most cases:

  • You choose an MCS-certified installer who is registered to apply for BUS.
  • The installer applies for the voucher and takes the grant off your total bill.
  • You pay the remainder, plus any works that aren’t covered by the scheme.

Important: Eligibility depends on scheme rules and your circumstances. Always verify the latest criteria on official guidance before committing to any contract.

Typical heat pump costs: what you might pay (and what changes the price)

Heat pump pricing is driven as much by system design as by the unit itself. Two homes with the same number of bedrooms can have very different costs if one needs bigger radiators, a cylinder, or electrical upgrades.

Costs usually included in an installer quote

  • Heat pump unit and indoor components
  • Installation labour, commissioning and basic controls
  • Some plumbing modifications and system flush (where needed)
  • Paperwork for MCS and (if eligible) BUS grant application

Common extras that can add cost

  • Radiator upgrades (bigger emitters) or underfloor changes
  • New hot water cylinder (if you currently have a combi boiler)
  • Electrical upgrades (consumer unit, isolator, cabling)
  • Scaffolding, condensate routing, making-good and pipe boxing
  • For ground source: groundworks, trenches or boreholes

What affects running cost the most

  • Home insulation and draught-proofing (heat loss)
  • Flow temperature (lower is usually better)
  • System sizing and weather compensation setup
  • Your electricity price and tariff type (e.g., standard vs time-of-use)
  • Whether you keep a backup/secondary heater and how it’s used

Two realistic scenarios (illustrative only)

These examples show how costs can vary. Figures are estimated and intended to help you sense-check quotes — not to replace a site survey.

Scenario A: 3-bed semi in the Midlands, gas boiler replacement

Assumptions
Air source heat pump, existing radiators partly upgraded, new hot water cylinder needed (replacing combi), modest electrical works, typical access.
Estimated quoted install (before grant)
£10,500–£14,500
If eligible for BUS grant
You’d pay the quote minus the grant value applied by the installer. Any non-eligible extras still apply.
Running-cost sensitivity
If the design achieves lower flow temperatures and your tariff is competitive, running costs can be more favourable; if radiators are undersized and flow temps run high, bills can be higher.

Scenario B: 4-bed detached in rural Wales, oil boiler replacement

Assumptions
Air source heat pump, larger heat load, multiple radiator upgrades, cylinder already present, potential three-phase not required but upgraded consumer unit needed.
Estimated quoted install (before grant)
£13,500–£19,500
If eligible for BUS grant
Grant reduces the upfront cost; final amount depends on installer design and what’s included.
Running-cost sensitivity
Compared with oil, the running cost outcome depends on electricity unit rates, seasonal efficiency, and how well the house is insulated (especially loft/walls and draughts).

Tip: If an installer can’t explain the heat loss and the intended flow temperature, treat the quote as incomplete. Comfort problems and high running costs are often design/setup issues, not “heat pumps don’t work”.

Compare options: heat pump vs keeping/replacing a boiler

This table is a decision aid for UK households. It’s not a substitute for a site survey, but it helps you compare the trade-offs you’ll see in quotes.

Option Upfront cost (typical) Running-cost drivers Best suited to
Air source heat pump (with BUS if eligible) Higher upfront; grant can reduce the bill. Quotes vary by design and upgrades. Electricity unit rate, seasonal efficiency, flow temperature, insulation, tariff type. Homes with decent insulation and space for an outdoor unit/cylinder; households planning long-term improvements.
Ground source heat pump Often highest upfront due to groundworks; grant may apply if eligible. Similar drivers to air source; may achieve stable performance depending on design. Properties with land/space for loops or boreholes and a long-term horizon.
New gas boiler (like-for-like replacement) Usually lower upfront; may be simpler if system is already set up for gas. Gas unit rate, boiler efficiency, heating controls, home insulation. Homes staying on gas in the short-to-medium term; where heat pump install is complex or unsuitable.
Direct electric heating (panel heaters) Lower install cost, but not a like-for-like comfort replacement for wet central heating in many homes. Electricity unit rate dominates; can be costly for larger homes or high heat demand. Small, well-insulated homes or occasional-use spaces (case-by-case).

Decision checklist: who heat pumps suit (and who should pause)

Often a good fit if…

  • You can improve or already have decent insulation (loft, walls, draughts)
  • You’re comfortable heating the home steadily (rather than short, high blasts)
  • You have space for an outdoor unit and (often) a hot water cylinder
  • You can get at least 2–3 detailed quotes with heat loss and emitter sizing
  • You’re considering solar PV or a time-of-use tariff (optional, case-by-case)

Pause and get advice if…

  • Your home is hard-to-insulate and currently feels cold/draughty
  • You have limited space for a cylinder and pipework changes
  • Your radiators are already undersized even for your current boiler
  • You’re in a flat with restrictions on external alterations or noise concerns
  • Any quote is “one size fits all” (no heat loss, no flow temp plan)

Costs, exclusions and common pitfalls (UK)

Many “surprise costs” aren’t hidden fees — they’re items that depend on your property. Use the cards below to pressure-test quotes and avoid missed assumptions.

1) Radiators and pipework

Heat pumps often run best at lower flow temperatures. That can mean bigger radiators or underfloor heating in some rooms. Ask which radiators are being changed and why.

2) Hot water cylinder space

If you currently have a combi boiler, a heat pump setup commonly needs a cylinder. Check where it will go, what size it is, and whether you’ll lose cupboard space.

3) Electrical upgrades

Some homes need consumer unit upgrades, external isolators, or cabling routes. Ensure the quote states what’s included and whether an electrician visit is allowed for.

4) Planning and permitted development

Many installs can be permitted development, but not always (e.g., some flats, listed buildings, conservation areas, placement constraints). Confirm early to avoid delays.

5) Noise and neighbour considerations

Heat pumps make noise (like a quiet fan). A responsible installer will discuss siting, brackets, vibration and clearances—especially in terraced homes.

6) Commissioning and controls

Comfort and efficiency depend on correct setup. Ask how they’ll configure weather compensation, hot water temperatures, and whether you get a proper handover.

Common quote comparison trap: Installer A includes radiator upgrades and electrical works; Installer B doesn’t. The “cheaper” quote may simply be missing essentials. Compare line-by-line.

Heat pump grants and costs: FAQs

1) Do I apply for the BUS grant myself?

Usually, your installer applies and the grant is deducted from your bill. You’ll still need to meet eligibility rules and provide any required information.

2) Can tenants get a heat pump grant?

Potentially, but it’s typically the property owner/landlord who proceeds with installation and paperwork. If you rent, you’ll need landlord consent and should agree responsibilities for maintenance and controls.

3) Are heat pumps cheaper to run than gas?

It depends. The big factors are your electricity price, the system’s seasonal efficiency, and whether the home can be heated at lower flow temperatures. A well-designed system can be competitive; a poorly designed one can disappoint.

4) Will I need a new hot water cylinder?

Often yes if you’re moving from a combi boiler. If you already have a cylinder, it may still need replacement depending on size, coil compatibility and condition. Ask the installer to specify cylinder model, capacity and location.

5) Does my EPC rating matter for the grant?

EPC and insulation requirements can form part of eligibility depending on current scheme rules. Even where not strictly required, insulation strongly affects comfort and running costs. If your EPC is old, consider getting it updated for a clearer view.

6) What about Scotland and Northern Ireland?

Support differs by nation. Scotland often routes support through Home Energy Scotland, while Northern Ireland has its own programmes and advice services. Use the official sources in the sources section to find the right path for your postcode.

7) Do I need a smart meter or a special electricity tariff?

No special meter is required to run a heat pump. However, some time-of-use tariffs may require a smart meter. If you’re considering tariff changes, check standing charges, peak rates, and how your household actually uses energy.

8) Can I keep my gas boiler as a backup?

Some homes use hybrid approaches, but eligibility for grants and the practicality of a backup system varies. If you’re considering a backup, ask how controls will switch between systems and what that means for efficiency and servicing costs.

9) How long does installation take?

Many installs take a few days, but it depends on radiator changes, cylinder work, and electrical upgrades. Ask for a schedule and what downtime to expect for heating and hot water.

10) What should I do before getting quotes?

Do quick wins first: check loft insulation, reduce draughts, and gather boiler details and any EPC. Then request multiple quotes and insist on heat loss and emitter sizing so comparisons are fair.

Trust, methodology and sources

Page ownership

We aim to keep this guide current, but policies and grant budgets can change. Always confirm details with official guidance and your installer.

How we assess heat pump “cost” and “value”

We treat “cost” as more than the sticker price. Our editorial approach prioritises the factors that most often change quotes and outcomes for UK households:

  • Upfront works scope: emitters (radiators), cylinder needs, electrical upgrades, access/scaffolding.
  • Design quality indicators: heat loss calculation, flow temperature, commissioning steps and controls strategy.
  • Running-cost sensitivity: tariff type, insulation level, and expected seasonal performance (real-world conditions).
  • Eligibility realism: we flag where rules differ by nation and where installers must be MCS-certified for scheme support.

Limitations: We do not know your home’s exact heat loss, radiator sizing or electrical condition, so scenario figures are illustrative. Your final quote may be higher or lower.

Sources (UK)

Ready to see real heat pump costs for your home?

We’ll help you check grant basics, understand what should be included in a quote, and compare options with confidence.

Check eligibility & request quotes Review the comparison table

Note: The secondary button takes you back to the decision support section. Quotes and grant rules vary by location and installer assessment.

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Updated on 3 Apr 2026