Air source heat pump cost and savings guide
Are you considering installing an air source heat pump but unsure about the costs involved? Currently, grants of up to £7,500 are available or £9,000 for some rural areas of Scotland.
Interested? We can get you started.
How much does an air source heat pump cost?
After the government grant, the price of an air source heat pump can vary between £3,999(1) and over £10,000 depending on several factors, such as;
- how powerful the unit is
- the brand
- government grants
- installation costs
(£3,999 price assumes reuse of a suitable existing hot water cylinder. Homes requiring a new cylinder will have an additional cost).
We understand that switching to a heat pump from a traditional heating system can feel overwhelming. That's why we back our heat pumps with a promise: if it doesn’t perform as promised, we’ll give you your money back. T&Cs apply.
Get more from your heat pump by joining one of our air source heat pump tariffs!
Is there any financial help available to have a heat pump installed?
The great news is that grants and loans are currently available to help with the cost of installing a heat pump. We've listed the details of the current ones across the UK. Plus, you could choose a heat pump financing option that suits your needs.
- If you live in England or Wales
You can take advantage of the Boiler Upgrade Scheme and get a grant of up to £7,500 for your air source heat pump installation. The scheme covers heat pump installations before the end of March 2028.
- If you live in Scotland
Home Energy Scotland offers grants of up to £7,500 towards an air source heat pump. This can increase to £9,000 for people in remote areas who qualify for the rural uplift. You can also apply for an interest-free loan of up to £7,500 to cover the remaining costs. For more details, check out the Scottish Government Urban Rural Classification.
There are also grants for low-income households in Scotland and Wales. If you receive government benefits, you may qualify for additional support through the ECO4 scheme.
Can I make savings on my energy bill by installing a heat pump?
According to the Energy Saving Trust, an average-sized, three-bedroom semi-detached home can save a significant amount annually by installing a standard air source heat pump, along with any recommended radiator upgrades, when upgrading from older less efficient heating solutions. For example, replacing an old (G-rated) gas boiler with an air source heat pump could currently save you up to £260.(2)
Estimate based on a three bedroom house using 11,500 Kwh, July 2025 fuel prices from Energy Saving Trust Fuel Price Guide. Annual Consumption Figures from Ofgem usage data.
Calculations:
- A new gas boiler could cost about £787 per year: (11,500 kWh ÷ 92%) × 6.3 p per kWh of gas
- An older, 70% efficient gas boiler could cost about £1,035 per year: (11,500 kWh ÷ 70%) × 6.3 p per kWh of gas
- An oil-fueled boiler could cost about £737 per year: (11,500 kWh ÷ 92%) × 5.9 p per kWh of oil
- An LPG-fueled boiler would cost about £1,137 per year: (11,500 kWh ÷ 92%) × 9.1 p per kWh of LPG
- An air source heat pump would cost about £992 per year: (11,500 kWh ÷ 300%) × 25.9 p per kWh of electricity
Air source heat pump service costs
Air source heat pump service costs may vary. Like any heating system, heat pumps require regular service checks to perform efficiently and extend their lifespan. Investing in a service plan can bring peace of mind and help you avoid costly repairs by catching issues early. If you're registered with Daikin, you're covered for five years of warranty coverage.
During the service, a qualified technician will:
- Check your system's performance and efficiency
- Look for potential issues before they lead to breakdown
In addition to professional servicing, several simple maintenance tasks should be undertaken to support your system's performance between services:
- Clean the filters regularly
- Clear debris from fans
- Keep the area around the outdoor unit free of obstructions.
Cost of running an air source heat pump
An air source heat pump could cost around £992 to run per year if a household uses 11,500kWh of energy.
The price of energy varies, and the amount of energy needed to heat a home can also differ, making it challenging to figure out how much it may cost to run a heat pump. However, we've put together an example based on average fuel cost figures in October for a three-bedroom home using 11,500kWh of energy per year.
We divide the home heat requirement by the heat pump's presumed efficiency, then multiply it by the fuel price(3):
(11,500 kWh ÷ 300%) × 25.9 p per kWh of electricity = £992
Lower your heat pump costs by joining one of our heat pump tariffs, all powered by zero carbon electricity(4) that we generate ourselves.
Is an air source heat pump right for my home?
Most homes are suitable for a heat pump, though upgrades like insulation or radiator changes may be needed for efficiency. You'll also need to:
- Be a homeowner
- Have enough outside space (around 2m x 1m)
- Have space for a water tank (for the most efficient heat pump)
- Have good insulation (like cavity wall and loft insulation)
Installers you can trust
We're here to help make your home more energy efficient with air source heat pump installations. As a Which? Trusted Trader and rated 'Excellent' on Trustpilot, EDF Heat Pumps is with you every step of the way.
Are air source heat pumps cost effective?
Air source heat pumps are often a cost effective way to heat a home. While modern A-rated gas boilers operate at an efficiency of around 88% to 94%, older models with D to G ratings can be as low as 70% efficient. In contrast, air source heat pumps can achieve efficiencies of up to 300%, meaning they can deliver three units of heat for every unit of electricity used.
For example, a typical 3-bedroom house might require about 11,500 kWh of heat annually. With the high efficiency of an air source heat pump, this could result in an average running cost of around £992(5) per year. In comparison, heating the same home with a 70% efficient gas boiler could cost approximately £1,035(5) annually.
Are there any hidden costs in installing an air source heat pump?
While the main costs are usually upfront, like the unit and installation, there can be a few additional expenses to keep in mind. For example, your home might need upgrades like extra insulation or new radiators to get the best performance from the heat pump. You may also need a hot water cylinder if you don’t already have one. Many of these costs will depend on your home’s current setup, and a qualified installer will support you with a clear assessment and guidance throughout the process.
What maintenance is required for an air source heat pump and how do they compare to other heating systems?
To keep your air source heat pump running smoothly and to maintain its manufacturer’s warranty, we recommend booking a regular annual service. The good news is that air source heat pumps usually need less maintenance than traditional boilers, so your yearly check-up will likely be quicker and easier than you might expect.
What financing options are available for installing an air source heat pump?
There are a few air source heat pump grants available:
- If you live in England or Wales
You can take advantage of the Boiler Upgrade Scheme and get a grant of up to £7,500 for your air source heat pump installation. The scheme covers heat pump installations before the end of March 2028.
With EDF Heat Pumps, you could also enjoy a flexible monthly heat pump payment plan. Affordable finance options to make upgrading your heating cost effective from just £40.58(6) a month.
- If you live in Scotland
Home Energy Scotland offers grants of up to £7,500 towards an air source heat pump. This can increase to £9,000 for people in remote areas who qualify for the rural uplift. You can also apply for an interest-free loan of up to £7,500 to cover the remaining costs. This means that some households in Scotland can get financial support of up to £15,000 for installing an air source heat pump.
What is the lifespan of an air source heat pump compared to other systems?
Air source heat pumps can usually last 20 years or more with proper care, which is longer than the typical 10 to 15 years for traditional heating systems like gas boilers.
Will installing an air source heat pump add value to my home?
Yes! Installing an air source heat pump not only helps reduce your carbon footprint, but it can also boost your home's value in today’s green-conscious market.
How long does it take to install an air source heat pump?
Installing an air source heat pump normally takes about 2 to 5 days. This includes setting up the outdoor unit, indoor components like the hot water cylinder, and connecting everything to your heating system. To keep things cosy, it’s a great idea to schedule your installation during the warmer months, so you won’t be without heating.
Can the weather have an impact on the efficiency and running costs of an air source heat pump?
Modern systems are built to perform well even in colder climates, often down to -25°C or lower. However, as the temperature drops, the pump has to work harder to extract heat from the air, which can increase energy consumption slightly.
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