Air source heat pump cost and grants guide
Are you considering installing an air source heat pump but unsure about the costs or available grants?
Our helpful guide helps you learn about air source heat pump costs and other factors you should consider to make a smart decision.
How much does an air source heat pump cost?
The price of an air source heat pump can vary between £3,500 and £8,900 depending on several factors, such as;
- how powerful the unit is
- the brand
- government grants
- installation costs
While heat pumps can be more expensive to install compared to other heating systems, they can be cost-effective due to their energy efficiency.
Typical air source heat pump costs based on home size
The following costs are an average including the £7,500 Boiler Upgrade Scheme for England and Wales or the £7,500 Home Energy Scotland grant.
2 bed bungalow
Average price £5,300
3 bed semi-detached or terraced home
Average price £6,100
4 bed detached home
Average price £7,200
Is there any financial help available to have a heat pump installed?
The great news is that grants and loans are currently available to help with the cost of installing a heat pump. We've listed the details of the current ones across the UK.
If you live in England or Wales
The government have increased its heat pump grant from £5,000 to £7,500!
You can take advantage of the Boiler Upgrade Scheme and get a grant of up to £7,500 for your air source heat pump installation. The scheme covers heat pump installations before the end of March 2028.
If you live in Scotland
If you live in Scotland, you can apply for an air source heat pump grant from Home Energy Scotland. This offers grants of £7,500, which increases to £9,000 for people in remote areas who qualify for the rural uplift. You can also apply for an interest-free loan of up to £7,500 to cover the remaining costs. This means that most households in Scotland can get financial support of up to £15,000 for installing an air source heat pump.
There are also grants for low-income households in Scotland and Wales. If you receive government benefits, you may qualify for additional support through the ECO4 scheme.
Who is eligible for an air source heat pump grant?
Neither the Boiler Upgrade Scheme for England and Wales nor loans and grants from Home Energy Scotland are means-tested.
You may be eligible for an air source heat pump grant if:
- you own the property where the heat pump would be installed (whether this is your home, a holiday let or a small commercial property)
- you use an air source heat pump installer who's accredited by the Microgeneration Certification Scheme (MCS)
- you’re replacing an old fossil fuel or electric heating system with a renewable heating system, such as an air source heat pump
- you are not replacing a heat pump or previous renewable system
How to apply for an air source heat pump grant through EDF
Applying for an air source heat pump grant varies depending on where you live and which scheme you’re applying to.
Applying for the Boiler Upgrade Scheme in England and Wales
When you install an air source heat pump with EDF, our MCS-accredited partner, CB Heating, will apply for the £7,500 Boiler Upgrade Scheme grant on your behalf and subtract it from the cost of your installation. They'll work with you to ensure you qualify for the grant before we install your heat pump so you know how much you'll pay.
Applying for the Home Energy Scotland Scheme
You apply for grants directly from the Home Energy Scotland Scheme rather than through CB Heating. You must apply before you install your air source heat pump. Once we've checked that your home is suitable for an air source heat pump, CB Heating will provide a quote to support your application.
Can I make savings on my energy bill by installing a heat pump?
According to the Energy Saving Trust, an average-sized, three-bedroom semi-detached home can save a significant amount annually by installing a standard air source heat pump, along with any recommended radiator upgrades, when upgrading from older less efficient heating solutions.
Running costs of an air source heat pump
An air source heat pump could cost around £1,992.60 to run per year if a household uses 18,000kWh of energy.
The price of energy varies, and the amount of energy needed to heat a home can also differ, making it challenging to figure out how much it may cost to run a heat pump. However, we've put together an example based on average fuel cost figures between April and June for a four-bedroom home using 18,000kWh of energy per year.
To estimate the total running costs, we divide the home heat requirement by the heat pump's presumed efficiency, then multiply it by the fuel price:
18,000kWh ÷ 300%) x 33.21p per kWh of electricity = £1,992.60
It's important to note that this is only an estimate. The actual costs of running a heat pump may vary depending on various factors, such as the size of the home, insulation quality, energy usage patterns, and electricity costs.
Air source heat pump service costs
Air source heat pump service costs may vary. Like any heating system, heat pumps require regular service checks to operate at their best and prolong their lifespan. Investing in a service plan can provide peace of mind and save you money in the long run by identifying and addressing issues before they become more expensive to repair.
It is crucial to have your air source heat pump professionally serviced regularly to keep it at its best performance and maintain your warranty coverage. If you are registered with Daikin, you are covered for five years of warranty coverage. During the service, a qualified technician will inspect your system to ensure it functions correctly and efficiently. The technician will also identify and address any potential issues that may cause the system to malfunction in the future.
In addition to professional servicing, several simple maintenance tasks should be undertaken to ensure everything works properly. This includes cleaning the filters, sweeping away debris from the fans, and ensuring that the area around the outside unit is clear of obstructions, such as plants and bins.
If you're getting payments through the Renewable Heat Incentive
Your payments should continue for the duration of your agreement with Ofgem. However, you may not be able to apply for additional funding through the new schemes on the same property.
If you need any help with your previous grant, it's best to follow the Ofgem instructions to ensure your payments continue and that you meet any obligations, such as meter readings and annual declarations.
Find out more about the closure of the Renewable Heat Incentive.
