Air source heat pumps have become more financially accessible in 2026 following the continuation and expansion of the Boiler Upgrade Scheme. Here is a complete guide to what they actually cost, how the grant works, running costs compared to gas, and how to decide if one is right for your property.
Air Source Heat Pump Installed Costs 2026
| Property Size | Before BUS Grant | After £7,500 Grant |
|---|---|---|
| Small (1-2 bed) | £8,000 – £12,000 | £500 – £4,500 |
| Medium (3-4 bed) | £10,000 – £16,000 | £2,500 – £8,500 |
| Large (5+ bed) | £14,000 – £22,000 | £6,500 – £14,500 |
What’s Included in the Price
A properly quoted heat pump installation includes: the heat pump unit itself, a hot water cylinder (if your current cylinder is not compatible), installation labour, any modifications needed to your heating distribution system (radiator upgrades if required), commissioning and MCS certification. Electrical work — which is almost always needed for a heat pump installation — should also be included.
Be cautious of quotes that exclude the hot water cylinder (often needed), electrical supply upgrade, or radiator upgrades. These can add £2,000-5,000 to the real total cost if excluded from the initial quote.
The Boiler Upgrade Scheme (BUS) Grant
The BUS grant of £7,500 is paid directly to the MCS-certified installer and deducted from your installation cost — you never see the money, it simply reduces what you pay. Eligibility conditions:
- The property must have a valid EPC (Energy Performance Certificate)
- The installation must be by an MCS-certified contractor (we hold MCS certification)
- The heat pump must meet MCS performance standards
- You must not have received a previous BUS grant for the same property
We handle the grant application process on behalf of our clients. There is no additional cost or complexity for you — the grant is simply deducted from the invoice.
Running Costs vs Gas
At 2026 UK energy prices (24p/kWh electricity, 6p/kWh gas), an air source heat pump running at a real-world average COP of 2.8 delivers heat at approximately 8.6p per kWh — slightly more expensive than gas at 6.7p per kWh for a 90% efficient boiler.
The running cost comparison is closer than it was 3-4 years ago due to electricity price increases. However, the carbon advantage of a heat pump remains significant — and for homes moving off gas entirely, the combination of heat pump heating and solar panels can achieve very low or even near-zero heating running costs.
Is a Heat Pump Right for Your Home?
Heat pumps work best in well-insulated homes with underfloor heating or larger radiators. They are less efficient in poorly insulated homes where heat loss is high, and they deliver heat at lower temperatures than a gas boiler (typically 45-55°C flow temperature vs 65-75°C for gas) — which means existing radiators may be undersized.
Before committing, we carry out a full heat loss calculation and assess whether your current radiators are adequate or need upgrading. We give honest advice — if a heat pump is not the right choice for your specific property, we will tell you.
Call 07833 053749 or request a free heat pump assessment. We are MCS certified and cover East Grinstead, Surrey, Sussex and South London.