How much does an air source heat pump cost in 2026?

What does an air source heat pump cost to install in 2026?

The most reliable national figure comes from the government's own Boiler Upgrade Scheme statistics, because installers report the full cost of every grant-funded job. The July 2026 release, published on 27 August 2026, puts the median cost of an air-to-water heat pump at £12,908 for April to June 2026. That figure includes the part the grant pays. The median system was 8 kW, and a quarter of installations cost more than £15,627.

Size moves the price more than anything else. In the same release, the 2025/26 median was £12,164 for a 6 to 8 kW system and £15,365 for 12 to 14 kW. The Energy Saving Trust quotes a typical installation cost of around £12,000, close to the national median.

Here are the typical prices we publish, by property type. They are shown after the grant because that is what you pay. The before-grant column simply adds the £7,500 back, so you can compare them with the national figures on the same basis.

Our 3-bed semi range sits above the national median, and you should know that before you compare quotes. Our figure for that home includes the outdoor unit, a hot water cylinder, controls, pipework, commissioning, MCS certification, the grant application and a 5 to 7 year manufacturer warranty on the unit. A lower quote is not a worse quote, and a higher one is not a better one. The only fair comparison is item by item, which is what the checklist below is for.

What pushes the price up or down?

• Heat loss, and so the size of the unit. A heat loss calculation, done room by room, sets the size. A draughty, uninsulated home needs a bigger unit, which costs more to buy and to run. Loft and cavity insulation first can shrink the unit you need; see what insulation costs and saves.
• Radiators. A heat pump runs cooler water than a boiler, so some rooms need a larger radiator to stay warm. Needing two or more new radiators moves the price up. Correctly sized existing radiators hold it at the base.
• The hot water cylinder. If you have a combi boiler today, you have no cylinder, so one has to be found space for and fitted. If you already have a suitable cylinder, it can sometimes be reused.
• Siting and pipe runs. A straightforward spot at the side or back of the house, close to where the pipes enter, is the least work. Long runs, awkward routes through finished rooms or an acoustic enclosure add cost.
• Electrical work. Some homes need an upgraded consumer unit or other electrical work before a heat pump can be connected. This is checked at survey.

If you want a sense of how your own home compares before anyone visits, plan your retrofit and you will see which of these are likely to apply.

What should a heat pump quote include?

• A room-by-room heat loss calculation, and the unit size it leads to.
• The design flow temperature and the seasonal efficiency (SCOP) the system is designed to reach. The grant only funds systems designed to a SCOP of at least 2.8.
• Every radiator being changed, listed by room.
• The cylinder, controls, pipework, electrical work and making good, each stated as included or not.
• MCS certification and commissioning.
• The grant shown as a deduction. Since 28 April 2026 Ofgem requires installers to take the full grant off your quote upfront.
• Warranty terms for the unit and for the workmanship.

How much does the Boiler Upgrade Scheme take off?

£7,500 for an air source (air-to-water) heat pump in England and Wales. If your home is off the gas grid and currently heated by oil or LPG, the grant is £9,000 until 31 March 2027. You must own the property (landlords and second homes count), and the heat pump must replace fossil fuel heating: gas, oil, LPG or electric. Your MCS-certified installer applies to Ofgem for you. Since 28 April 2026 you no longer need a valid EPC, although if your home has one its number must be given. Our guide to how the Boiler Upgrade Scheme works covers the detail, and our four-question checker tells you in a minute whether you are likely to qualify.

What does a heat pump cost to run compared with gas?

This is where honesty matters most. From 1 October to 31 December 2026, the Ofgem price cap is 26.32p per kWh for electricity (standing charge 54.83p a day) and 7.97p per kWh for gas (standing charge 29.68p a day), GB average for Direct Debit. Electricity has no VAT from 1 October 2026 to 31 March 2027. For July to September 2026 the rates were 26.11p and 7.33p.

Assumptions, so you can redo the sum: Ofgem's typical medium gas use of 9,500 kWh a year, all of it for heating and hot water; a gas boiler that turns 85% of that into heat, so 8,075 kWh of heat is needed; and a heat pump seasonal performance factor (SPF, the heat delivered over a year divided by the electricity used) of 2.8, which is the median measured in the government-funded Electrification of Heat trial, or 3.2 for a well-designed system. The electricity standing charge is left out because you pay it either way.

At these prices a heat pump needs an SPF of about 2.8 just to match an 85% efficient boiler on unit costs (26.32 ÷ 7.97 × 0.85). So on a standard tariff the saving can be small or nothing at all. It grows with a lower flow temperature, a better-insulated home and a tariff with lower-priced hours. The Energy Saving Trust's own estimate for a 3-bed semi replacing gas, at July 2026 prices, ranges from £110 a year more to £220 a year less on a standard tariff, and £204 to £530 a year less on a heat pump tariff with the gas account closed. Our running costs guide works through tariffs and efficiency in more depth.

What else lowers the cost: VAT and government loans?

• 0% VAT. HMRC zero-rates the installation of heat pumps in homes from 1 May 2023 to 31 March 2027, after which the reduced 5% rate is due to return. It applies when the installer supplies and fits the equipment, so it is already inside a proper quote.
• Warm Homes Loan Scheme. Under the government's scheme rules, participating lenders can offer lower-interest loans for heat pumps from an initial consumer launch phase starting September 2026, capped at £20,000 for an air-to-water heat pump before the grant. It is available through approved lenders only, so ask the lender directly whether a product is part of the scheme.
• Ownership. The grant rules say you must own the heat pump once it is installed, so a heat pump supplied on hire purchase, conditional sale or consumer hire does not qualify. Smart Energie does not sell credit: you pay a deposit when we confirm your price and the balance when the work is done.

Is a heat pump worth it for your home?

It usually makes most sense when your boiler is near the end of its life anyway, your home is reasonably well insulated or about to be, and you plan to stay. It makes less sense if you need heat back quickly after a breakdown, are moving soon, or your walls and loft need work first. In those cases a new boiler now and a heat pump after the fabric work can be the right answer, and we will say so. Start with a free survey request, and we will give you a fixed price with the grant already applied.

Common questions