Heat pump cost index (UK, 2026)
A typical air source heat pump costs around £8,000 to £15,000 to install in the UK in 2026, falling to roughly £500 to £7,500 after the £7,500 Boiler Upgrade Scheme grant in England and Wales. Ground source systems run higher, from about £15,000 for horizontal trenches to £35,000 for boreholes. Supply and installation carry 0 percent VAT until 31 March 2027.
Typical installed cost by system
| System | Before grant | After £7,500 grant | Notes |
|---|---|---|---|
| Air source heat pump (ASHP) | £8,000 to £15,000 | £500 to £7,500 | Most common choice; typical mid-size home |
| Ground source, horizontal (trenches) | £13,000 to £25,000 | £5,500 to £17,500 | Needs a large garden, roughly 2x floor area |
| Ground source, vertical (boreholes) | £20,000 to £35,000 | £12,500 to £27,500 | Suits smaller plots; drilling drives the cost |
Net figures apply the £7,500 grant to the cost range; see the Boiler Upgrade Scheme grant tracker. Biomass and air-to-air attract different grant amounts.
What makes up an air source quote
| Element | Typical cost | Notes |
|---|---|---|
| Heat pump unit | £3,000 to £7,000 | By brand, output and model |
| Installation labour | £2,000 to £4,000 | Typically 2 to 4 days work |
| Hot water cylinder | £500 to £1,500 | If not already suitable |
| Radiator or pipework upgrades | Variable | Some homes need larger radiators |
Last updated 2026-06-24. Compiled by VettedHome from Energy Saving Trust, MCS installer data and published 2026 cost guides. These are indicative UK ranges; an exact price depends on your property, heat loss and chosen system. Always compare MCS certified quotes.
Common questions
How much is a heat pump after the grant?
For a typical air source install, roughly £500 to £7,500 once the £7,500 Boiler Upgrade Scheme grant is applied, plus 0 percent VAT until March 2027.
Why is ground source so much more expensive?
The groundwork dominates the cost: trenching needs a large garden, and boreholes need specialist drilling. The heat pump itself is a smaller share of the total than with air source.
Do I pay VAT on a heat pump?
No. The supply and installation of a domestic heat pump carries 0 percent VAT until 31 March 2027.
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See heat pump guidance →Sources: Energy Saving Trust · MCS · 2026 UK installer cost guides.