Air Source Heat Pump Price Guide: Factors That Influence Costs in the Current Market
Are you considering upgrading to an air source heat pump for your UK home in 2025?
You’re not alone. With energy price volatility and a strong focus on cutting carbon emissions, air source heat pumps (ASHPs) have never been more popular.
But understanding what goes into the price—and how you can get the best value—is crucial before taking the plunge.
At Energex Eco Limited, we break down the key factors affecting the price of air source heat pumps and offer practical tips for managing your investment wisely.
What’s the Current Price Range for Air Source Heat Pumps?
In 2025, the average cost to buy and install an air source heat pump in the UK typically falls between £7,000 and £15,000 for a standard 3–4 bedroom home.
For smaller homes or air-to-air models (which only provide heating/cooling, not hot water), it may START as low as £3,000–£4,000 for a basic supply and fit, while larger, complex installations (air-to-water models, full hot water, major upgrades) can reach up to £18,000 for substantial properties.
Breakdown by home size:
- Small property (up to 100m²): £8,000–£10,000
- Medium (100–200m²): £10,000–£13,000
- Large (200m²+): £13,000–£18,000
Keep in mind, government grants such as the Boiler Upgrade Scheme (£7,500 off) can significantly reduce your upfront cost—some households pay from as little as £500 after subsidies.
Key Factors That Influence Air Source Heat Pump Costs
1. Type of Heat Pump (Air-to-Air vs Air-to-Water)
- Air-to-air: Cheaper (£3,000–£9,000), only heats (or cools) the air.
- Air-to-water: More expensive (£7,000–£18,000), provides central heating via radiators/underfloor and hot water.
2. Property Size and Heat Demand
Larger homes need bigger, higher-capacity (kW) heat pumps to deliver enough warmth, pushing up the cost.
Small, well-insulated homes can opt for smaller, less expensive models.
3. System Capacity (kW Rating)
The kW output required is based on your home’s heating demands (insulation, window quality, ceiling heights, etc.). Higher capacity units are pricier.
|
Home Size |
Avg. Capacity |
Cost Range |
|
1–2 beds (<100m²) |
4–6kW |
£8,000–£9,000 |
|
3–4 beds (100–200m²) |
8–16kW |
£10,500–£13,500 |
|
5+ beds (200m²+) |
13–16kW+ |
£14,500–£18,000 |
4. Installation Complexity
- Difficult access, unique homes, or complicated retrofits cost more.
- Existing heating system: Upgrading legacy pipework or switching from combi to regular boilers can raise the bill.
- New hot water tank: Required if you don’t already have one (£1,000–£2,500 extra).
- Upgraded radiators or underfloor heating: Larger or more radiators may be needed due to lower flow temp—adds £2,000–£5,000 or more.
5. Home Insulation and Upgrades
Well-insulated homes are more efficient and may allow for a smaller pump, lowering costs.
Sometimes, improving roof, floor, or cavity wall insulation is advised before installing a heat pump.
Insulation upgrades cost approx.:
- Cavity wall: £500–£3,000
- Roof/loft: £500–£2,000
- Floor: £1,000–£5,000
6. Brand and Model
Premium brands and advanced inverter technology typically cost more upfront, but may save more on energy in the long run.
7. Installer Fees
Installation costs vary by region, experience, and complexity.
Always get multiple quotes from MCS-certified installers to ensure competitive and transparent pricing.
Ongoing Costs to Consider
- Routine Maintenance: Usually £120–£245 per year for annual servicing.
- Repairs: Minimal if maintained, but some parts (pumps, valves) may need replacement every 5–10 years.
- Electricity Use: Actual running cost depends on your heat pump’s efficiency (COP/SCOP), insulation, and the price you pay for electricity.
Typical yearly running costs:
£450–£1,200, depending on property and habits.
How Do Government Grants Affect the Price?
- Boiler Upgrade Scheme (BUS): Offers up to £7,500 off air source heat pump installations in England and Wales, applied directly to reduce your upfront bill.
- VAT Relief: Most heat pumps are now VAT-free for eligible homeowners.
Example:
- Typical install cost: £11,000
- BUS grant: £7,500
- Final cost to you: £3,500
Air Source vs. Ground Source: The Price Difference
- Ground source heat pumps: £15,000–£35,000 (much higher install cost due to groundworks).
- Water source heat pumps: Seldom used, pricing falls between air and ground source installations.
Ways to Save on Air Source Heat Pump Installation
- Do necessary insulation work before installing.
- Upgrade radiators selectively: Prioritise the biggest or coldest rooms.
- Shop around: Get 2–3 quotes from reputable, MCS-certified installers.
- Time your installation: Off-peak seasons can mean faster installs and sometimes discounts.
- Take full advantage of grants and government incentives.
Frequently Asked Questions
Q.1 How much does an air source heat pump cost to install in the UK in 2025?
Typically, between £7,000 and £15,000, depending on system type and home size.
With the £7,500 government grant (BUS), many households see final bills between £3,500 and £8,000.
Q.2 Are air source heat pumps more expensive than gas boilers?
Yes, upfront costs are higher than a new gas boiler, but ASHPs are far more energy-efficient and benefit from grants and much lower running costs.
Q.3 What influences the final price of a heat pump?
Key factors include house size, type of system, insulation, radiator upgrades, installation complexity, and your chosen brand/model.
Q.4 Will I need to upgrade my radiators or pipework?
Often, yes—especially if your home has small radiators or microbore pipework. Upgrades can range from £2,000–£5,000.
Q.5 Does the Boiler Upgrade Scheme cover all of the costs?
No, but it covers a significant portion—up to £7,500—leaving you to pay the remainder.
Q.6 Do air source heat pumps increase house value?
Yes, installing one can make your home more futureproof and attractive to eco-conscious buyers.
Q.7 How long does an air source heat pump last?
Most units last 15–20 years with proper maintenance.
Conclusion
Investing in an air source heat pump is a superb way to future-proof your home, lower emissions, and enjoy stable heating costs in an increasingly uncertain energy market.
Installation prices are influenced by home size, insulation, required system capacity, existing infrastructure, upgrades, and the brand you choose.
Take full advantage of the Boiler Upgrade Scheme and shop around for quotes from MCS-certified installers for the best value.
At Energex Eco Limited, we’re here to guide you every step of the way—from honest price guidance to expert installation—so you can invest in a greener, warmer future.
Posted on Aug 12, 2025.
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