How much it costs to install a heat pump is likely to be an important factor is whether or not to go ahead with adding the eco-friendly heat source to your home.
Although the government’s Boiler Upgrade Scheme (BUS) provides financial grants to help homeowners with the cost, the figure can vary depending on the type of air source heat pump, the size needed and the location and nature of your property.
Whether you are renovating or undertaking a self-build project, here's what you can expect to pay for heat pump installation.
How much does it cost to install a heat pump?
The cost of installing a heat pump can vary considerably, but you are probably looking at a figure that sits somewhere between £12,000 and £45,000 before taking into account any heat pump grants and the type of heat pump you decide to install.
As the grants can be up to the value of £7,500, this means the actual cost of installation is usually somewhere between £7,000 and £37,500, including system design and installation. If you're based in Scotland, the Boiler Upgrade Scheme is administered through Home Energy Scotland.
There are a number of factors that may influence the cost of both the pump and the installation. These include:
1) Size of your property A large property may require a larger heat pump, or even more than one heat pump, and this of course increases the cost.
2) Existing plumbing Another factor that may change the price, is the present condition of pipework and radiators. If they require upgrading, you will need to factor in the replacement costs.
3) Insulation In addition, given that heat pumps work most efficiently in fabric first homes that are well insulated, you will need to take into account whether your current level of wall or roof insulation is sufficient. Especially as it is a condition of the BUS grant that the property is covered by a valid Energy Performance Certificate (EPC) and that there are no outstanding insulation recommendations.
4) The location of the property may also determine the size of the system required and thus the cost. If the house is located in the south of the country, where temperatures are generally warmer, a smaller system may be more suitable and this will help to lower the cost.
But the type of heat pump - either grounds source or air source - and whether you are installing it in a new or existing home are probably the main factors that will affect how much it costs.
Houses located in colder climates may require larger systems (Image credit: Maxshot/Getty Images)
Air source heat pumps
An air source heat pump (ASHP) obtains heat from the air outside the property and feeds the heat into radiators. Underfloor heating with heat pumps is also a viable option.
Before taking into account the BUS grant, installation cost and the brand, air source heat pump costs are usually in the region of £3,500 and £8,000. Add installation costs of between £7,000 - £10,000 and the full price for an ASHP could be around £13,000 - although a BUS grant would considerably reduce this.
An ASHP usually costs around £1,900 to actually operate, based on a property using 18,000kWh of energy. Again, this figure can vary according to the size of the property, condition of the insulation, cost of electricity and amount of energy usage.
An air source heat pump draws on air from outside the home (Image credit: Welcomia/Getty Images)
1. Cost of installing an ASHP in an existing home
The best way to illustrate the cost of installing an air source heat pump in an existing home is to perhaps take a look at the example of an air source heat pump installed in a 1940s 3-bed semi-detached house with a floor area of 128 square metres. The house was previously heated by a gas combi boiler and the loft insulation had been increased to a new depth of 350 mm. The house also had a solar PV array and battery storage.
A Mitsubishi Ecodan Ultra Quiet 11.2 kW ASHP was installed with a hot water tank in the utility room, in addition to nine new radiators. The total cost was £13,000, without any contribution from any grant funding.
One of the biggest factors on cost when installing an ASHP is the condition of the insulation. This can have even more of an impact if the house is older than 1900.
As older homes tend to be less well insulated than new builds, topping up the insulation in turn raises the cost of the installation. While the ASHP, with some adjustments can utilise the existing heat system, its efficiency may also be limited by the design of the existing heating system. However, even in an older house, the cost of installing an ASHP in an existing home should not be much more than £14,000.
2. Cost of installing an ASHP in a new build
In new build homes, an ASHP can easily replace air conditioning and a gas boiler. As there is the likelihood of better insulation, the cost of installing an ASHP in a new build will certainly not be much more than £14,000 and in fact, may be considerably less.
To illustrate this with as real example once again, a Nibe 12 kilowatt ASHP and water storage system was installed in a new build house in South London. The total cost was £17,000, but this was reduced to £11,500 with a contribution of £5,000 from the BUS heat pump grant.
A new build will likely be well insulated which can reduce installation costs (Image credit: NIBE)
Ground source heat pumps
The cost of a ground source heat pump (GSHP) is usually between £14,500 and £45,000, depending on a range of factors.
Installing a ground source heat pump is done one of two ways. It is either laid using a horizontal collector laid in a lateral trench or it requires a vertical bore hole – the latter increasing the cost as this is the more expensive option because of the cost of the excavation required. The cost also varies according to the brand and the size of the property it needs to heat.
Minimum labour costs will generally be around £350 per day and it is worth bearing in mind that it can take 2-5 days to install a GSHP, depending on which type it is. If the heating system within the property needs modification, then this can extend the length of time needed for a full installation up to a week.
However, as with ASHPs, the BUS can provide a grant of up to £7,500 towards the initial outlay.
A ground source heat pump requires horizontal or vertical trenches (Image credit: Bbsferrari/Getty Images)
1. Cost of installing a GSHP in an existing home
If the property in question is located rurally and has more available land, it is usually possible to opt for a GSHP that uses a collector laid in a horizontal trench rather than a bore hole. This will lead to immediate cost savings.
Installing collectors in a horizontal trench is likely to cost between £2,500 and £4,500, as opposed to between £4,000 and £6,000 for a vertical borehole.
On the other hand, as with ASHPs, the cost of installing a GSHP in an existing home, particularly if it is an older property, may be affected by the condition of the current central heating system, the level of insulation and the size of the property.
If either the heating system or the insulation needs an upgrade, this will add to the initial cost. In some cases, this may push the overall cost over the £35,000 mark.
2. Cost of installing a GSHP in a new build
If there is not enough land available with a new build property to lay a collector for a GSHP in a horizontal trench, a vertical borehole might be the only option. This will push the cost upwards.
The overall price will also be affected by the brand of heat pump, borehole depth and the local underlying geology.
Currently, the cost of drilling and lining a vertical borehole may range from from £60 to £100 per metre.
FAQs
Is a heat pump more efficient than a gas boiler?
When it comes to heat pumps vs gas boilers, heat pumps are around four times as efficient as a gas boiler because of the improved Coefficient of Performance (COP).
This is usually 3.5 to 4.5 for a ground source heat pump and 2.5 to 3.5 for an air source heat pump.
How much will a heat pump cost to run?
The running costs of heat pumps really depends on how much heat they need to generate. This might be more in an older house with poorer insulation than in a new build.
Energy expert David Hilton explains: "If the insulation is optimised and the emitters (radiators or underfloor heating) are also designed for low temperatures, then the flow temperature of the heat pump can be lower and therefore the efficiency will be higher. As such, the heat pump will cost you less to run."
He puts a figure of £1,120 per year with electric prices at 28p per kWh to generate 12,000kWh of energy for your home.
David Hilton
With more than 35 years of expertise, David is a seasoned renewables and ventilation installer, recognised for his longstanding contributions to Homebuilding and Renovating magazine. Holding membership in the Gas Safe Register and armed with a Masters degree in Sustainable Architecture, David stands as an authoritative figure in sustainable building and energy efficiency. His extensive knowledge spans building fabrics, heat recovery ventilation, renewables, and conventional heating systems. Additionally, he serves as a distinguished speaker at the Homebuilding & Renovating Show.
Bring your dream home to life with expert advice, how to guides and design inspiration. Sign up for our newsletter and get two free tickets to a Homebuilding & Renovating Show near you.
Robin is a freelance journalist based in the South West of England, UK. He specialises in environmental issues, climate change and renewable energy, with other interests in transport and green motoring. He is a regular daily correspondent for a renewable energy website, writing news articles and interview pieces on all the main clean energy technologies. He has also written widely for numerous magazines on these topics, as well as writing white papers and web content.
