How much does a heat pump cost in 2026?
Half of the air source heat pumps installed under the Boiler Upgrade Scheme in April to June 2026 cost £11,100 to £15,600, with a median of £12,900. After the £7,500 Boiler Upgrade Scheme grant, half of homeowners pay about £3,600 to £8,100. Ground source heat pumps cost more, typically £18,000 to £42,000 before the grant with a median of about £27,000 on the same scheme data, but deliver higher efficiency. Read our complete guide to the Boiler Upgrade Scheme for eligibility details.
The exact cost depends on your property size, how well insulated your home is, whether your radiators need upgrading, and the complexity of the installation. Our calculator uses the median costs installers recorded under the Boiler Upgrade Scheme, heat pump efficiency measured in real homes, government meter data for heat demand and the current Ofgem price cap. See our methodology and where our data comes from.
Heat pump running costs vs gas boiler
Heat pumps are more efficient than gas boilers because they transfer heat rather than generating it by burning fuel. Measured over a full year in 428 real homes by the government's Electrification of Heat trial, air source heat pumps delivered a median of 2.78 units of heat for every unit of electricity, with the middle half of homes between 2.55 and 3.05. For a detailed breakdown, read our guide to heat pump running costs.
However, electricity costs more per unit than gas. At the Ofgem price cap for October to December 2026 (26.32p/kWh electricity vs 7.97p/kWh gas), a heat pump at the measured median efficiency of 2.78 costs about 9.5p per kWh of heat, a little more than the 8.9p from a gas boiler at 90% efficiency; it draws level at an efficiency of about 3.0. On a heat pump tariff such as Cosy Octopus, about 18.7p per kWh with most heating in the cheap hours, it costs about 6.7p, around 24 per cent less than gas. For an average 3 bed semi that saves about £211 a year against gas, and far more against oil, LPG or electric heating: about £650 a year against oil at 11.3p per kWh, the BoilerJuice UK average of 116.20p a litre on 25 September 2026, although oil prices move. See our boiler vs heat pump comparison for the full 15-year analysis.
Is a heat pump worth it?
For homes currently heated by oil or LPG, a heat pump almost always saves money from year one. For homes on mains gas, the financial case is tighter: the government grant brings the upfront cost down, but the running cost saving depends on moving to a heat pump tariff, and even then it is modest. An average 3 bed semi saves about £211 a year on a heat pump tariff, so the £5,200 it costs after the grant takes about 25 years to pay back. A heat pump also cuts the emissions from heating, because most of the electricity it runs on comes from low carbon sources.
The best candidates for heat pumps are homes with good insulation, adequate space for the outdoor unit, and a willingness to accept slightly lower flow temperatures (which means larger radiators may be needed in some rooms). Combining a heat pump with solar panels further reduces running costs.
Frequently asked questions
How much does a heat pump cost in the UK in 2026?
Half of the air source heat pumps installed under the Boiler Upgrade Scheme in April to June 2026 cost £11,100 to £15,600, including the system, labour and VAT, with a median of £12,900. After the £7,500 grant, half cost about £3,600 to £8,100. Larger homes need a bigger unit and cost more.
How much is the heat pump grant in 2026?
The Boiler Upgrade Scheme provides £7,500 towards an air source or ground source heat pump, and £9,000 until March 2027 if your home is heated by oil or LPG and has no mains gas connection. It covers England and Wales. Your MCS-certified installer applies on your behalf and the grant is deducted from your quote.
Are heat pumps cheaper to run than gas boilers?
On a standard electricity tariff, about the same as gas: at the Ofgem price cap for October to December 2026 gas heat costs about 8.9p per kWh from a 90% efficient boiler, and a heat pump matches that at an efficiency of about 3.0, a little above the 2.78 measured median. On a heat pump tariff such as Cosy Octopus, about 18.7p per kWh with most heating in the cheap hours, it costs about 6.7p per kWh of heat, around 24 per cent less than gas. Against oil, LPG or electric heating a heat pump usually costs less on any tariff.
Is a heat pump worth it in the UK?
It depends on what you heat with now and which tariff you use. Against oil, LPG or electric heating a heat pump usually costs less to run. Against gas it costs about the same on a standard tariff and less on a heat pump tariff. Even after the grant it usually costs more to install than a new gas boiler, so the case rests on the tariff, how long you will stay, and what you want your heating to run on. The calculator above works it out for your home, and our full comparison adds the 15 year view.
How many homes near you already have one: see the map of heat pumps by council.