An air source heat pump costs roughly £8,000–£14,000 to install in 2026, but the £7,500 Boiler Upgrade Scheme grant and 0% VAT cut the net cost to about £500–£6,500 for most homes. Running costs are typically £900–£1,400 a year — a heat pump is 200–250% more efficient than a gas boiler.
Air source heat pumps are the leading low-carbon heating solution for UK homes. With the £7,500 Boiler Upgrade Scheme grant and 0% VAT, a heat pump can cost as little as £500 for a 2-bed flat. Here's a complete breakdown of what you can expect to pay in Cambridgeshire, Norfolk, and Suffolk.
£7,500 BUS Grant Available
The Boiler Upgrade Scheme provides £7,500 towards air source heat pump installation. The grant is deducted directly from your invoice — you never handle the money. We manage the entire application process. Read our full BUS guide
Heat Pump Costs by Property Size
| Property | System Size | Full Cost | BUS Grant | You Pay | Annual Running |
|---|---|---|---|---|---|
| 1-2 bed | 5-6 kW | £7,000 - £10,000 | -£7,500 | £0 - £2,500 | £610 - £720 |
| 3-bed semi | 8-10 kW | £8,000 - £13,000 | -£7,500 | £500 - £5,500 | £610 - £720 |
| 4-bed detached | 10-12 kW | £11,000 - £18,000 | -£7,500 | £3,500 - £10,500 | £610 - £720 |
All prices include 0% VAT. Costs include hot water cylinder and typical installation. Running costs based on SCOP 3.5, electricity at 24.5p/kWh.
Heat Pump Brands We Install
| Brand | Origin | SCOP | Noise | Unit Price | Warranty |
|---|---|---|---|---|---|
| Daikin Altherma 3 | Japan | 3.8-4.5 | 37-45 dB | £3,500-£5,500 | 5 years (ext. 7) |
| Mitsubishi Ecodan | Japan | 3.5-4.2 | 38-46 dB | £3,200-£5,000 | 5 years (ext. 7) |
| Vaillant aroTHERM plus | Germany | 4.0-4.7 | 35-42 dB | £4,000-£6,000 | 5 years (ext. 7) |
| Samsung EHS Mono | S. Korea | 3.6-4.3 | 37-44 dB | £2,800-£4,500 | 5 years |
| Grant Aerona³ | Ireland | 3.5-4.1 | 40-48 dB | £3,000-£4,800 | 5 years (ext. 7) |
Unit prices shown are for the heat pump unit only. Full installation costs include cylinder, pipework, controls, and labour as shown in the table above.
Running Costs: Heat Pump vs Gas Boiler
| Metric | Gas Boiler | Heat Pump |
|---|---|---|
| Fuel Cost | 6.76p/kWh (gas) | 24.5p/kWh (electricity) |
| Efficiency | 85-92% | 300-350% (SCOP 3.0-3.5) |
| Effective Heating Cost | 7.3-8.0p/kWh | 7.0-8.2p/kWh |
| Annual Cost (3-bed) | £800-£1,000 | £680-£850 |
| Carbon Emissions | High (fossil fuel) | Low (and falling) |
Heat Pump + Solar: The Ultimate Combination
Pairing a heat pump with solar panels dramatically reduces running costs. Solar generates free electricity during the day when the heat pump is working hardest. Adding battery storage lets you use solar power for evening heating too.
Do I Need to Upgrade My Radiators?
Heat pumps work most efficiently at lower flow temperatures (35-45C) compared to gas boilers (55-75C). This means some radiators may need to be larger to deliver the same amount of heat.
Radiator Upgrades Are Often Included
In a typical 3-4 bed home, 2-4 radiators may need replacing. This is usually factored into the installation cost. Well-insulated homes with newer, larger radiators may not need any upgrades at all. We assess this during your free home survey.
Installation Timeline
Free Home Assessment
1-2 hoursWe survey your property, check insulation, measure radiators, and confirm BUS eligibility.
System Design & Quote
5 working daysDetailed quote showing costs before and after the £7,500 grant.
BUS Application
2-3 weeksWe submit the application to Ofgem and handle all paperwork.
Installation
2-4 daysFull installation including any radiator upgrades.
Commissioning
2-3 hoursSystem commissioning, controls setup, and handover.
Frequently Asked Questions
Will a heat pump work with my existing radiators?
In many cases, yes. Heat pumps operate at lower flow temperatures than gas boilers (35-45C vs 55-75C), so some radiators may need upsizing to deliver the same heat output. During our free home assessment, we calculate the heat loss for every room and identify which radiators (if any) need replacing. Typically, only 2-4 radiators need upgrading in a well-insulated property.
How much does a heat pump cost to run compared to gas?
A well-installed air source heat pump with a SCOP of 3.5 costs roughly the same as gas heating at current energy prices, and less than gas in well-insulated homes. With a SCOP of 3.5, every 1p spent on electricity generates 3.5p worth of heat. As gas prices rise and heat pump efficiency improves, the running cost advantage will increase.
How noisy is an air source heat pump?
Modern air source heat pumps operate at 35-48 decibels, similar to a refrigerator or quiet conversation. Brands like Daikin, Vaillant, and Mitsubishi have invested heavily in noise reduction. Permitted development rules require the unit to be at least 1 metre from the property boundary.
Do I need planning permission for a heat pump?
Most air source heat pump installations fall under permitted development rights, meaning no planning permission is required. The unit must comply with noise limits (42dB at the nearest neighbour boundary) and be installed at least 1 metre from the property boundary. Listed buildings and properties in conservation areas may need additional approvals.
Can I combine a heat pump with solar panels?
Absolutely, and it is one of the most cost-effective combinations. Solar panels can generate much of the electricity needed to run the heat pump during the day, reducing running costs by 30-50%. Adding battery storage allows you to store solar energy for evening heating. We design integrated systems that maximise this synergy.
What is SCOP and why does it matter?
SCOP (Seasonal Coefficient of Performance) measures how efficiently a heat pump converts electricity into heat over a full year. A SCOP of 3.5 means for every 1kWh of electricity used, the heat pump produces 3.5kWh of heat. Higher SCOP = lower running costs. The best modern heat pumps achieve SCOP values of 4.0-4.7.
Related Guides
Local Heat Pump Cost Guides
Postcode-specific costs, grant details, and local suitability information.
