Skip to main content
Menu

Air source heat pump cost guide

Thinking of investing in an air source heat pump but unsure what costs are involved? 

Read our guide and get information about air source heat pump costs and factors you may want to consider to help you make an informed decision.

What is an air source heat pump?

An air source heat pump is a heating system that extracts heat from the outside air and transfers it into your home via radiators or underfloor heating. By using the heat from the air combined with electricity generated from renewable sources, an air source heat pump is a renewable and potentially cost-effective heating solution that can reduce your reliance on fossil fuels and lower your carbon footprint.

Get an air source heat pump

How much does an air source heat pump cost?

The price of an air source heat pump can vary between £3,500 and £8,900 depending on several factors, such as how powerful the unit is, the brand, government grants and installation costs.

If you live in England and Wales

Costs are inclusive of both installation and a government grant of £7,500, which is made available through the non-means-tested Boiler Upgrade Scheme

If you live in Scotland

Costs are inclusive of both installation costs and a government grant of £7,500  which is made available through Home Energy Scotland. You can also apply for an interest-free loan of up to £7,500 to cover the remaining heat pump installation costs. 

While heat pumps can be more expensive to install compared to other heating systems, they can be cost-effective due to their energy efficiency.

Daikin air source heat pump in garden

Spread the cost into manageable monthly payments

CB Heating offer a finance package(1) for air source heat pumps that allows you to pay in monthly instalments. This way, you can spread the cost into easy and manageable payments. If you're interested in this option, they'll provide you with all the details you need to know during the quote process.

How much does paying monthly with CB Heating cost?

An average air source heat pump installation costs £13,000 before the £7,500 Boiler Upgrade Scheme deduction, which can be paid back over five or ten years. The table below shows the loan payments over these periods.

  5-year plan 10-year plan
Cash price  £13,000 £13,000
Government grant (BUS)  - £7,500 - £7,500
Deposit (15%) £825 £825
Credit amount £4,675 £4,675
Interest £1,719.20 £3,728.60
Total amount payable (inc deposit)  £7,219.20 £9,228.60
Number of repayments 60 120
APR 13.9% 13.9%
Monthly payment amount £106.60 £70.10

If you live in Scotland, you can apply for an interest-free loan of up to £7,500 through Home Energy Scotland.

Running costs of an air source heat pump

An air source heat pump could cost around £1,992.60 to run per year based on a household using 18,000kWh of energy.

The price of energy varies and the amount of energy needed to heat a home can differ as well, making it challenging to give an exact figure for how much it may costs to run a heat pump. However, we've put together an example based on average fuel cost figures between April and June for a four-bedroom home using 18,000kWh of energy per year.

To estimate the total running costs, we divide the home heat requirement by the heat pumps presumed efficiency, then multiply it by the fuel price:

18,000kWh ÷ 300%) x 33.21p per kWh of electricity = £1,992.60

It's important to note that this is only an estimate and actual costs of running a heat pump may vary depending on various factors such as the size of the home, insulation quality, energy usage patterns and cost of electricity.

Compare savings with other heating systems

The amount of savings you can expect from your heat pump will vary based several factors: the design and operation of the heat pump itself, as well as the system you're replacing. The Energy Saving Trust provides a list of potential savings(2), which are outlined below. 

  • if you replace an old (G-rated) gas boiler with an air source heat pump you could save £385
  • if you replace a new (A-rated) gas boiler with an air source heat pump you could save £8
  • if you replace old electric storage heaters with an air source heat pump you could save £1100
  • if you replace new electric storage heaters with an air source heat pump you could save £830
  • if you replace an old (G-rated) LPG boiler with an air source heat pump you could save £460
  • if you replace an old (G-rated) oil boiler with an air source heat pump you could save £455
  • if you replace a new (A-rated) LPG boiler with an air source heat pump you could save £50

Typical air source heat pump costs based on home size

The costs below are inclusive of the £7,500 Boiler Upgrade Scheme for England and Wales, or the £7,500 Home Energy Scotland grant.

2 bed bungalow

£3,500 - £7,250

3 bed semi-detached or terraced home

£5,500 - £7,500

4 bed detached home

£6,900 - £8,900

Air source heat pump service costs

Air source heat pump service costs can vary, and like any heating system, heat pumps require regular service checks to operate at their best and prolong their lifespan.

You may want to invest in a service plan. A regular service plan can provide peace of mind and save you money in the long run by identifying and addressing issues before they become more expensive to repair. 

Having your air source heat pump professionally serviced regularly is crucial to keeping it at its best performance and maintaining your warranty coverage, which is five years if you're registered with Daikin. During this service, a qualified technician will inspect your system to ensure that your heat pump functions correctly and efficiently. The technician will also identify and address any potential issues that may cause the system to malfunction in the future.

In addition to professional servicing, you should undertake several simple maintenance tasks to ensure everything is working properly. This includes cleaning the filters, sweeping away debris from the fans, and ensuring that the area around the outside unit is clear of obstructions, such as plants and bins.