With energy prices continuing to rise and environmental concerns growing, heat pumps have become an increasingly popular heating solution for UK homes. As heat pump installers in Warminster, we’re frequently asked about installation costs. This guide breaks down what you can expect to pay in 2025, the factors affecting pricing, and how to maximise available grants to reduce your investment.
Average Heat Pump Installation Costs
The cost of heat pump installation varies depending on the system type, property size, and installation complexity. Here’s a breakdown of typical costs in 2025:
Air Source Heat Pumps (ASHPs):
- Small property (up to 100m²): £8,000-£10,000
- Medium property (100-200m²): £10,000-£13,000
- Large property (200m²+): £13,000-£18,000
Ground Source Heat Pumps (GSHPs):
- Small property with horizontal loops: £15,000-£20,000
- Medium property with horizontal loops: £20,000-£25,000
- Properties requiring boreholes: £25,000-£35,000+
These prices include the heat pump unit, installation labour, necessary modifications to your heating distribution system, and standard controls. However, they don’t account for government grants, which can significantly reduce these costs.
Factors That Influence Installation Costs
Several variables can impact your heat pump installation costs:
Property characteristics:
- Current insulation levels
- Existing heating system (radiators vs underfloor heating)
- Available outside space for the unit or ground loops
- Property age and construction type
- Electrical supply capacity
System specifications:
- Heat pump capacity (measured in kW)
- Energy efficiency rating (higher efficiency = higher upfront cost but lower running costs)
- Monobloc vs split system design
- Additional features (smart controls, hot water cylinders, buffer tanks)
Installation complexity:
- Need for radiator upgrades
- Electrical supply upgrades
- Heating system modifications
- Groundworks required (for GSHPs)
- Access difficulties
Additional components:
- Hot water cylinder: £800-£1,500
- Buffer tank: £500-£1,000
- Upgraded radiators: £200-£400 per radiator
- Underfloor heating: £70-£100 per m²
Available Grants and Incentives
A major factor affecting the final cost of heat pump installation is the availability of government grants:
Boiler Upgrade Scheme (BUS):
- £7,500 for air source heat pumps
- £7,500 for ground source heat pumps
Additional local authority grants:
- Various schemes offering £1,000-£3,000 depending on location and eligibility
- Enhanced rates for households in fuel poverty or properties with poor energy efficiency
VAT reduction:
- Reduced VAT rate of 0% on heat pump installations and energy efficiency measures
These incentives can reduce the net cost of an air source heat pump to as little as £2,500-£5,500 for many households, making them much more affordable than the headline figures suggest.
Hidden Costs to Consider
When budgeting for a heat pump, be aware of these potential additional costs:
Heating system modifications: Larger radiators or underfloor heating may be required (£2,000-£5,000)
Insulation improvements: Better insulation might be needed for optimal efficiency (£1,000-£6,000)
Electrical upgrades: Upgrading your electrical supply if necessary (£500-£1,500)
Planning permissions: Some installations may require permissions (usually not needed, but if required: £200-£300)
Hot water solutions: Separate hot water cylinder if not included (£800-£1,500)
Running costs: While lower than fossil fuels in many cases, electricity costs should be factored into total ownership costs
As we discussed in our article on how much money you can save with an air source heat pump, the long-term operational savings can offset these initial costs.
Cost vs. Value: Is a Heat Pump Worth It?
When considering heat pump installation, it’s important to weigh costs against benefits:
Environmental impact: Significantly reduced carbon emissions compared to gas or oil boilers
Energy bill savings: Potential savings of 25-50% compared to electric heating and 10-30% compared to oil heating
Property value: Heat pumps can add to property value and improve EPC ratings
Independence from fossil fuels: Protection from volatile gas and oil prices
Longevity: Heat pumps typically last 15-20 years, compared to 10-15 years for boilers
Ways to Reduce Heat Pump Installation Costs
Several strategies can help reduce your heat pump installation costs:
Maximise available grants: Ensure you apply for all eligible funding schemes
Improve insulation first: Better insulation means you can install a smaller, less expensive heat pump
Consider a hybrid system: Combining a heat pump with your existing boiler can be more cost-effective initially
Compare quotes: Get at least three detailed quotes from MCS-certified installers
Time your installation: Some installers offer better rates during quieter periods
Getting a Quote for Your Property
Every property has unique requirements that affect heat pump installation costs. To get an accurate quote, you’ll need a professional assessment that considers:
- Your heating and hot water requirements
- Property layout and construction
- Current insulation levels
- Your budget and preferences
- Eligibility for grants
Next Steps
If you’re considering a heat pump for your home, the first step is a professional assessment to determine system suitability, appropriate size, and accurate costs for your specific needs.
Our team of MCS-certified heat pump installers in Warminster provides free, no-obligation surveys and detailed quotations, including guidance on available grants. Contact us today to arrange a convenient appointment and discover how affordable the transition to renewable heating can be.
