Heat pump costs
Heat pumps are a smart, long-term investment for many homes in the UK and offer real savings for your wallet and the planet.
Read on to find out out how much they cost to install, own and operate.
Speak to an expert – Get a free quote
Understanding the costs of Air Source Heat Pumps
What is a heat pump and how does it work?
Heat pumps are becoming one of the most talked-about alternatives to traditional boilers – and for good reason. Instead of burning fuel, they move existing heat from one place to another, using electricity. This makes them incredibly efficient, often delivering over three times more heat than the energy they consume.
This makes them super efficient and means they could make you savings on your energy bills especially if you use a heat pump specific tariff from provider such as EDF Energy. If you are replacing an old g-rated boiler or oil heating system you will see some savings even without the other energy saving measures.
Benefits of heat pumps
- Lower energy bills (4) – Heat pumps are highly efficient especially when replacing electric heating or older gas boilers.
- Reduce your carbon emissions – Heat pumps use electricity and renewable energy from the air. They produce much less carbon than fossil fuel heating systems.
- Heat pump grants – Schemes like the Boiler Upgrade Scheme(2), mean you could get up to £7,500 off the cost of your heat pump installation if you are eligible.
- Save more over time – The initial cost may be higher, but lower running costs could save you money. Heat pump tariffs and other energy-saving measures can also help.
Why consider a heat pump?
Efficiency and cost savings
One of the biggest reasons homeowners switch to heat pumps is their efficiency. Heat pumps can generate over three times the amount of energy they consume, thanks to their ability to transfer rather than generate heat. This efficiency can translate into significant savings on your utility bills. But how much can you actually save?
Heat pumps can significantly reduce energy consumption. According to the Energy Saving Trust, if your home currently relies on electric heating such as storage heaters, switching to a heat pump could cut your energy bills by £1,200 per year. If you are replacing an old G-rated gas boiler, you could still see savings of £260 per year and for those using an LPG boiler, the savings could be £700 per year.
Environmental benefits
Heat pumps reduce your carbon footprint by using less energy compared to traditional heating systems such as gas boilers. They’re a great step towards a more sustainable lifestyle. By relying on electricity instead of fossil fuels, heat pumps can help decrease the overall demand for non-renewable energy sources.
The use of heat pumps also aligns with global efforts to reduce greenhouse gas emissions. The UK government currently offers the Boiler Upgrade Scheme for eligible homeowners who are looking to install an air source heat pump. This is part of the government’s strategy to meet its NetZero targets making heat pumps not only a smart financial choice but also an environmentally responsible one.
Improved home comfort
Beyond cost savings and environmental benefits, heat pumps improve your home comfort. They provide consistent temperatures all year round (even in winter) creating a more comfortable living environment for you and your family.
How much does a heat pump cost?
When considering a heat pump, it’s important to understand both the upfront and running costs.
Initial installation cost
The cost of installing a heat pump can vary and is based on several factors, including:
- The heat loss in your home
- The size of the heat pump required to adequately heat your home and hot water
- Your homes’ insulation
- Your current radiators and if any upgrades are required
- You and your families’ personal requirements
For the air source heat pump systems, we design and provide, a full site survey and technical assessment will be carried out prior to Install. We will calculate the heat loss on your property and design a system specifically for your home and your needs.
The average cost of installing a heat pump can range from £6,000 to £13,000 depending on the above factors. However, this does not include the Boiler Upgrade Scheme grant of £7.5K which, for eligible homeowners, will reduce the cost substantially. At EDF Heat Pumps, we also offer flexible finance options with affordable monthly payments to help with the air source heat pump installation cost.
Spread the cost with monthly payments
(Subject to status and affordability)
A finance package means you could spread the cost of your air source heat pump installation with manageable monthly payments. Below is an illustrative representative example of what your typical repayments could look like over 5 or 10 years.
If you live in Scotland, you can apply for an interest-free loan of up to £7,500 through Home Energy Scotland.
Finance available at a fixed 0% or 9.9% APR representative, subject to status and credit check. The amount to be financed will vary depending on the heat pump required for your property and your chosen deposit.
Representative example
10-year finance plan monthly paymentsCash price: £11,499
Government grant (BUS): £7,500
Balance: £3,999
Deposit (15%): £599.85
Credit amount: £3,399.15
Interest: £1,874.97
Total amount payable (inc. deposit): £5,873.97
Number of repayments: 120
APR: 9.9%
Monthly payment amount: £43.95
Representative example
5-year finance plan monthly paymentsCash price: £11,499
Government grant (BUS): £7,500
Balance: £3,999
Deposit (15%): £599.85
Credit amount: £3,99.15
Interest: £881.74
Total amount payable (inc. deposit): £4,880.74
Number of repayments: 60
APR: 9.9%
Monthly payment amount: £71.35
Representative example
2-year finance plan monthly paymentsCash price: £11,499
Government grant (BUS): £7,500
Balance: £3,999
Deposit (15%): £599.85
Credit amount: £3,399.15
Interest: £0.00
Total amount payable (inc. deposit): £3,999
Number of repayments: 24
APR: 0%
Monthly payment amount: £141.63
Important information
Finance is subject to eligibility, status, and affordability checks. UK residents aged 18 or over only.
Deposit required: minimum 15%, maximum 25%.
Prices shown include the Boiler Upgrade Scheme (BUS) grant, subject to eligibility and approval by Ofgem. We do not receive any commission or incentive for introducing you to our finance provider. You are free to choose your own finance option.
Failure to keep up with repayments may effect your credit rating.
CB Heating Ltd trading as EDF Heat Pumps is a company registered in England and Wales, Company number 09885603, Registered office, Nova North, 11 Bressenden Place, London, SW1E 5BY.
CB Heating Ltd trading as EDF Heat Pumps is also an Appointed Representative of Shermin Finance Limited, Company number 01276121, Registered office, HomeServe, Cable Drive, Walsall, England, WS2 7BN.
Authorised and regulated by the Financial Conduct Authority, FRN 727594. Shermin Finance Limited acts as a credit broker and is not a lender - they can introduce you to a panel of finance providers and do not charge fees for their Consumer Credit services.
Heat pump grants and incentives
In the UK, government incentives like the Boiler Upgrade Scheme can offset the initial costs of an air source heat pump. The BUS grant pays eligible home owners a grant of £7,500 towards heat pump costs. There are eligibility checks for the grant so it is worth checking that you are eligible.
Some UK banks are also offering customers incentives to switch to an air source heat pump. These offers are to encourage homeowners to improve the energy efficiency of their homes. Some of the banks that are offering this incentive are:
- Barclays: £2,000 cashback for installing a heat pump – Eligibility: You must be an existing Barclays mortgage customer and install a home energy improvement such as a heat pump. You can apply here.
- Lloyds Bank: Up to £2,000 Eco home reward towards a range of energy upgrades – Eligibility: You must be a Lloyds Bank mortgage customer to receive the offer. Apply here.
Halifax: Up to £2,000 green living reward – Eligibility: You must apply for either a new mortgage or borrowing after July 2024. More details here.
Heat pump efficiency
Air source heat pumps are one of the most efficient ways of heating your home. They generate up to three times the amount of heat compared to a traditional G rated gas boiler. This makes them up to 300% more efficient in comparison. They are a sustainable, low-carbon option to heat your home and hot water, helping you save energy and money.
Once installed, air source heat pumps could offer significant savings on energy bills. The efficiency of these systems is measured by the Coefficient of Performance (COP). A COP of 3 means that for every unit of electricity used, the pump generates three units of heat. This is why heat pumps are so efficient compared to gas boilers. A traditional gas boiler will only ever be 90-100% efficient.
Several things effect how efficient your heat pump will be:
- Temperature: Your heat pump will work harder in the winter months and therefore be slightly less efficient.
- Design: An undersized heat pump may not be able to keep up with the amount of heat the home loses (heat loss), while an oversized heat pump may turn on and off frequently, which decreases efficiency.
- Insulation: If your home is well-insulated, a heat pump doesn’t work as hard, as your property can retain its heat better.
- Maintenance: Like any heating system, ensuring you keep up with maintenance and servicing ensures the heat pump operates at its optimal efficiency.
- Radiator size: The size and type of your radiators can affect efficiency. Bigger radiators are more efficient because the heat pump doesn’t have to operate at such a high temperature. Underfloor heating is also a great option due to its larger surface area. If you want to read more about radiators, this post goes into more detail.
- Weather compensation: Getting the weather compensation right can help improve efficiency.
- Hot water: Making sure the hot water isn’t set too hot can help improve efficiency. Most heat pumps are designed to emit hot water at temperatures between 45-50°C, which covers most needs.
If you’d like even more detail on heat pump efficiencies, you can read our comprehensive post here.
Heat pump operating costs
The running cost of a heat pump is where you could see the real savings. To make the most of your air source heat pump, you could consider switching to a dedicated heat pump tariff such as those offered by colleagues at EDF. A dedicated heat pump tariff could save you up to £351 a year (1)
The best way to make the most of your air source heat pump is to run it efficiently. Your installer will carry out a full handover with you so you’re happy with the set up and how the controls work. When people ask “why is my air source heat pump expensive to run?” it is often due to a bad installation or because the system is not being used in the most efficient way.
How much electricity does an air source heat pump use?
The electricity an air source heat pump (ASHP) uses depends on:
- The size of your home (larger homes need more heating).
- Your home’s insulation (good insulation means less heat loss, so the pump runs less often).
- Your heating demand (how warm you like your home, how much hot water you use).
- The efficiency of the heat pump (measured as the Coefficient of Performance, or COP).
As a rule of thumb: A typical UK home needs around 8,000–12,000 kWh of heat per year. With a heat pump efficiency of about 300% (COP of 3), that means it only needs 2,500–4,000 kWh of electricity per year to cover that demand.
For comparison, a gas boiler in the same home would use 12,000 kWh of gas. The key difference is that electricity is getting greener each year as the UK adds more renewables, so running a heat pump reduces your carbon footprint significantly. So, is a heat pump cheaper than gas? The answer is, it can be when paired with a dedicated heat pump tariff alongside a well-designed system. For many people right now, the cost of running your air source heat pump should be the same, and therefore no more expensive than running your gas boiler
Long-term savings
While the initial investment might be high, the long-term savings on your energy bills could be significant.
Over the lifespan of a heat pump, which can be 15-20 years, the reduction in energy costs can offset the initial expense, making it a cost-effective solution in the long run.
Heat pump vs gas boiler
Many people wonder if a heat pump is cheaper than a gas boiler. While gas boilers might have lower upfront costs, heat pumps generally win in terms of efficiency and long-term savings. The running costs of a heat pump can be lower than those of a gas boiler, especially when paired with a dedicated heat pump tariff.
For UK homeowners, the key difference between an air source heat pump and a gas boiler lies in efficiency and sustainability. A modern gas boiler is typically around 90% efficient, meaning it wastes some energy as heat escapes during the combustion process. By contrast, an air source heat pump doesn’t burn fuel at all – it simply moves heat from the outside air into your home, often achieving efficiencies of over 300%. That means for every unit of electricity used, you can get up to three units of heat.
While a boiler gives you instant hot water on demand, a heat pump will need space indoors for a hot water cylinder as well as space outside for the external unit. Switching to a heat pump will cut reliance on fossil fuels, lower your carbon footprint, and reduce long-term running costs – especially as the UK shifts towards renewable electricity and away from natural gas.
Comparing efficiencies and costs
Gas boilers, while effective, often operate at efficiencies ranging from 70% to 90%. In contrast, heat pumps can achieve efficiencies of up to 300%. This is because they move heat rather than generate it.
Heat pump tariffs
If you’re thinking about making the switch to a heat pump, the right tariff can make a big difference to your running costs. Our colleagues at EDF offer dedicated heat pump tariffs designed to work perfectly alongside your air source heat pump.
The tariffs are designed to give you cheaper electricity rates at the times you’re most likely to use your heating. You can keep your home warm and comfortable with yout new heat pump while saving money on your energy bills. It’s a simple, sustainable way to get the most out of your investment and with EDF and EDF Heat Pumps, you’ll have the reassurance of a trusted UK energy supplier behind you.
Are air source heat pumps cost effective?
While the upfront costs of air source heat pumps may seem higher, the long-term savings could be substantial. The exact savings will depend on how much energy you currently use. However, homeowners can lower their energy bills. This is especially true if they use a heat pump with other energy-saving options like solar panels and batteries.
When you’re ready to get in touch and talk about upgrading, drop us a message.
NOTES
Indicative pricing
1. The price above reflects the £7,500 government boiler upgrade scheme and is based on our lowest priced heat pump, cylinder and controls. The figure quoted does not reflect any radiator upgrades that may be required. Your individual quote will be specific to you and your requirements may rise depending on the system required to suit your home.
Boiler upgrade scheme
2. Eligibility checks apply. Visit the UK Government website for details: https://www.gov.uk/apply-boiler-upgrade-scheme
Zero standing charges
A typical customer can save £164 per year versus the current single-rate price cap tariff. This is based on the following;
3. Savings are based on a customer using Ofgem’s typical domestic consumption of 2700 kWh electricity and with heating provided by an ASHP with COP of 3.1 providing equivalent heat to that from a 94% gas boiler using 11,500 kWh of gas.
Save £260 per year
4. The Energy Saving Trust: Figures are based on fuel prices as of July 2025. Find out more about how we made these calculations. The running cost you can expect will depend on the size of your home, any heating system upgrade and any saving will also depend on the fuel type being replaced. You can expect the saving to range between old and new, depending on the age of your current heating system. https://energysavingtrust.org.uk/advice/air-source-heat-pumps/
Efficiencies
5. Heat Pump investment roadmap, UK Government https://www.gov.uk/government/publications/heat-pump-net-zero-investment-roadmap/heat-pump-investment-roadmap-leading-the-way-to-net-zero
The Heat Pump Promise
6. With our Heat Pump Promise if your heat pump doesn’t perform as promised, we’ll give you a refund. Terms & Conditions apply https://www.cbheating.co.uk/wp-content/uploads/2025/05/H3373-AW1-V3.pdf