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 |
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.
Sources: Energy Saving Trust · MCS · gov.uk: Boiler Upgrade Scheme, what you can get (the £7,500 grant) · HMRC VAT Notice 708/6 (0 percent VAT until 31 March 2027) · 2026 UK installer cost guides.
Download and cite
Download the table as CSV (UK heat pump installed cost by system).
Cite as: VettedHome (2026). Heat pump cost UK: 2026 price index. https://vettedhome.co.uk/data/heat-pump-cost-index/. Licensed under CC BY 4.0.
Editor, VettedHome
Adam leads VettedHome's editorial coverage of UK home services. He is the founder and managing director of Muswell Rose, the commercial strategy and modern systems business behind a portfolio of UK information sites, and he researches and writes the plain-English guides that help homeowners choose between installers and trades, drawing on the standards set by the relevant bodies for each job, such as Gas Safe Register, NICEIC, MCS, TrustMark and the Property Care Association. He is clear about what to check before any work starts.
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