Labour typically accounts for £2,000–£4,000 of the total installation cost. This includes placing and connecting the outdoor unit, running pipework and electrical connections, installing or connecting the cylinder, and commissioning the system. Labour costs are higher in London and the South East and lower in the North of England, Scotland, and Wales. The complexity of the installation also affects cost: a like-for-like replacement in a property with an existing suitable cylinder costs less in labour than a conversion from a combi boiler requiring new cylinder space and significant pipework changes.
A heat pump installation in the UK typically costs between £10,000 and £16,000 gross — before the £7,500 Boiler Upgrade Scheme grant brings that down to £2,500–£8,500 for most homes. Those are wide ranges, and understanding what drives variation in cost is essential before you approach any installer. This guide breaks down every cost component: the unit, labour, cylinder, radiators, electrical work, running costs, and ongoing maintenance. All figures are based on real 2026 market rates.
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Key Takeaways
- The £7,500 BUS grant is the single biggest cost lever — it reduces the net installation cost dramatically
- Most additional costs (cylinder, radiators) apply to homes converting from a combi boiler
- Running costs for oil and LPG homes are typically £400–£1,200/year lower than with a fossil fuel boiler
- Gas home running costs are broadly comparable — the grant is the main financial driver for those homes
- Savings vary depending on property size, insulation, and energy tariff
Heat pump unit costs by size and brand
The heat pump unit itself — the outdoor unit and any associated indoor components — is the largest single cost line. Unit size is measured in kilowatts (kW) of heat output. Most UK homes need between 5 kW and 13 kW depending on size and insulation level; the majority of three-bedroom semi-detached houses fall in the 6–9 kW range.
| Unit capacity | Suitable for | Supply cost (mid-range brand) | Supply cost (premium brand) |
|---|---|---|---|
| 5–6 kW | Well-insulated 2–3 bed house | £2,800 – £4,000 | £4,500 – £6,000 |
| 7–9 kW | Average 3–4 bed house | £3,500 – £5,000 | £5,500 – £7,500 |
| 10–13 kW | Larger or less-insulated property | £4,500 – £6,500 | £7,000 – £10,000 |
| 14–16 kW | Large detached or poorly insulated home | £5,500 – £8,000 | £8,500 – £12,000 |
Leading brands in the UK market include Vaillant (aroTHERM), Mitsubishi (Ecodan), Samsung (EHS), Daikin (Altherma), Nibe (S-series), and Worcester Bosch (Greenstore). There is genuine quality variation between brands, but the differences are smaller than the marketing suggests — and installer quality matters far more than brand choice. For guidance on brands, see our complete air source heat pump guide.
Installation labour costs
Labour typically accounts for £2,000–£4,000 of the total installation cost. This includes placing and connecting the outdoor unit, running pipework and electrical connections, installing or connecting the cylinder, and commissioning the system. Labour costs are higher in London and the South East and lower in the North of England, Scotland, and Wales. The complexity of the installation also affects cost: a like-for-like replacement in a property with an existing suitable cylinder costs less in labour than a conversion from a combi boiler requiring new cylinder space and significant pipework changes.
The Energy Saving Trust’s independent cost guidance aligns with these figures and notes that prices have stabilised from the spike seen during the supply chain disruptions of 2022–2023. The market is more competitive in 2026, which benefits consumers who take time to get three quotes.
Additional costs: cylinder, radiators, and electrical
These are the costs that vary most between properties and between installers. Understanding them prevents surprises when quotes arrive.
Hot water cylinder
If you currently have a combi boiler, you have no hot water cylinder. Installing one adds £800–£1,800 to the project (cylinder + plumbing labour). A heat pump-optimised cylinder has a large primary coil (large surface area to allow the low-temperature flow from the heat pump to heat the stored water efficiently). Budget for a quality indirect cylinder — 200–300 litres for most households — rather than a cheap option that will reduce system efficiency. See our dedicated hot water cylinder guide for sizing detail.
Radiator upgrades
Heat pumps running at 40–45°C flow temperature need larger radiators than a gas boiler running at 70°C. If your existing radiators were sized correctly for a gas boiler, some may be too small to deliver adequate heat output at the lower flow temperature. A competent installer will identify which radiators need upgrading as part of the heat loss survey. Radiator replacement costs £150–£400 per radiator including labour. It’s unusual to need all radiators replaced — in a well-insulated home, it’s often two or three in smaller rooms, or none at all.
Electrical work
The heat pump needs a dedicated 16A or 32A circuit from the consumer unit. In a modern home this is straightforward and typically costs £200–£500. If the consumer unit needs upgrading to accommodate the new circuit (common in homes over 25 years old), add £500–£1,200 for that work. All electrical work must be completed by a Part P-registered electrician.
The BUS grant: impact on total cost
The Boiler Upgrade Scheme (BUS) grant of £7,500 is applied directly by your MCS-certified installer — you see a reduced invoice rather than receiving a cheque. This is the most significant cost lever available to UK homeowners in 2026. Here is how it affects the total cost for three typical property scenarios:
| Property type | Gross installed cost | BUS grant | Net cost | Indicative annual saving (vs oil) | Approx payback period |
|---|---|---|---|---|---|
| 3-bed semi, system boiler, replacing oil | £11,500 | −£7,500 | £4,000 | £700 | ~6 years |
| 3-bed semi, combi boiler, replacing gas | £13,500 | −£7,500 | £6,000 | £100 – £300 | 20–60 years |
| 4-bed detached, system boiler, replacing LPG | £15,000 | −£7,500 | £7,500 | £900 | ~8 years |
These payback estimates assume current Ofgem-capped electricity prices (~25p/kWh) and oil/LPG at current market rates. Savings vary depending on property size, insulation, and energy tariff. For the full BUS grant eligibility criteria and application process, see our BUS grant guide. Credit is subject to status. Grant eligibility depends on individual circumstances — check gov.uk for current criteria.
Heat pump running costs: realistic annual figures
Running cost depends on three factors: your home’s heat demand, the heat pump’s efficiency (SCOP), and the price you pay for electricity. Here are realistic annual running cost estimates for 2026, based on a three-bedroom semi-detached house with moderate insulation.
| Electricity tariff | Assumed unit rate | SCOP 2.8 | SCOP 3.2 | SCOP 3.8 |
|---|---|---|---|---|
| Standard Ofgem cap rate | 25p/kWh | £1,340/yr | £1,170/yr | £990/yr |
| Heat pump optimised tariff (e.g. Cosy Octopus) | ~18p/kWh avg | £965/yr | £845/yr | £710/yr |
These estimates assume a total annual heat demand of approximately 15,000 kWh (typical for a 3-bed semi). Larger properties or less-insulated homes will have higher heat demands and proportionally higher running costs. The figures illustrate two important points: first, a well-optimised system (SCOP 3.8 vs 2.8) saves around £350/year — so installation quality directly affects your annual bills. Second, an appropriate electricity tariff can cut running costs by a further £350–£400/year. For a detailed breakdown by property type and fuel comparison, see our heat pump running costs guide.
Ongoing costs: servicing, maintenance, and warranties
Heat pumps have lower ongoing maintenance costs than a gas boiler. There are no combustion components, no annual gas safety certificate requirement, and the main moving part is the compressor. That said, annual servicing is recommended and required to maintain many manufacturer warranties. Typical annual service costs:
- Annual heat pump service: £100–£200 (covers checking refrigerant pressure, cleaning coils, verifying flow rates, checking controls)
- Cylinder immersion heater element replacement (every 5–10 years): £150–£300
- System inhibitor top-up: £30–£60 (done at service)
Manufacturer warranties typically cover the compressor for 5–7 years, with extended warranties available. The MCS Workmanship Warranty covers installation quality for a minimum of 2 years. Some installers offer annual service contracts — these can be worthwhile for peace of mind but compare the bundled price against paying per visit. For a full assessment of whether the numbers stack up for your situation, see our article on whether a heat pump is worth it in the UK and our heat pump vs gas boiler comparison.