Heat Pump Installation Costs at a Glance
The total cost of installing an air source heat pump in a typical 3-bedroom UK home ranges from £12,000 to £18,000, including the heat pump unit, installation labour, and any necessary upgrades to the heating system. With the government's £7,500 Boiler Upgrade Scheme (BUS) grant, the net cost reduces to roughly £4,500–£10,500.
Cost Breakdown
- Heat pump unit (5–10 kW ASHP): £4,000–£8,000
- Installation labour: £2,000–£4,000
- Hot water cylinder (if required): £800–£1,500
- Radiator upgrades: £500–£3,000
- Electrical upgrades: £300–£1,000
- Planning/MCS certification: Included by accredited installer
- Total before grant: £12,000–£18,000
- BUS grant deduction: -£7,500
- Typical net cost: £4,500–£10,500
Factors Affecting Installation Cost
Your final price depends on: property size and heat loss, whether you need a new hot water cylinder, whether existing radiators need upgrading, ease of outdoor unit placement, and local labour rates.
The Boiler Upgrade Scheme (BUS)
The BUS grant of £7,500 for air source heat pumps (£7,500 for ASHPs, £7,500 for GSHPs) is applied directly by your MCS-accredited installer — you never handle the money. Only properties in England and Wales are eligible. The grant is only available when replacing a fossil fuel heating system with an ASHP installed by an MCS-certified contractor.
Getting Accurate Quotes
Always get at least three quotes from MCS-accredited installers. An installer should conduct a full heat loss survey before quoting — be wary of anyone quoting without visiting your property. The MCS installer database at mcsregistered.com lets you verify credentials.
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