Skip to Content

Air Source Heat Pump Installation Costs & Prices 2023

Air source heat pumps are a highly efficient heating technology that generate heat from air compression. 

Effective all year round even at temperatures below -15°C, heat pumps are well-suited to the UK climate and are currently heavily incentivised by the UK government under the Renewable Heat Incentive (RHI)

Air source heat pumps combine perfectly with underfloor heating systems to offer one of the most efficient and greenest home heating systems possible. 

This article will cover what you can expect to pay for an air source heat pump, factors that can affect the cost and other common questions around air source heat pumps.

Average Installation Cost

By collecting quotes from 5 MCS-certified air source heat pump installers, 8 secondary sources and a government source, we compiled this table of average air heat pump installation costs. 

These costs are for retrospective fitting to existing heating systems and do not include underfloor heating costs. 

Installation in new builds may be cheaper, especially when installed at the same time as an underfloor heating system. 

2-bed terraced/semi-detached (5kW)1 - 2 days£6,000 - £8,000 
3-bed semi-detached (9kW to 12kW)1 - 2 days£8,000 - £10,000
4-bed semi-detached (16kW)1 - 3 days£10,000 - £14,000
4-bed detached or larger (16kW)2 - 4 days£15,000 - £20,000

All costs include the following equipment and parts as well as labour:

  1. The heat pump unit itself
  2. Water tank 
  3. Circulation pumps
  4. Buffer tank 
  5. Heat exchanger 
  6. All connective components 
  7. Heat distribution systems may be necessary for bigger homes

Heat Pump Power Rating

Measured in kW, heat pumps have varying power ratings. Smaller heat pumps are rated around 4kW to 5kW, suitable for flats or smaller houses.

8 to 12kW heat pumps are the most common option for 3-bed semi-detached houses, 16kW heat pumps are usually only necessary for larger detached homes. 

The installation engineer will survey your house size as well as its energy credentials and usage prior to recommending a heat pump model.

Air Source Heat Pump Savings

Air source heat pumps can be 4 or more times more efficient than either gas or electric heating. 

Their efficiency is actually around 350% – they use such a small amount of electricity to create heat that their efficiency sits well into the positive range. 

In terms of cost per kWh, air source heat pumps costs are very similar to highly efficient modern gas boilers at just under 5p/kWh, but it depends on the tariff. 

Average Air Source Heat Pump Heating Cost

According to IMS Heatpumps, a very raw average annual heating cost average when using an air source heat pump is £520. 

Viessman similarly states that the average cost of heating an average UK home using an air source heat pump would cost £560 (based on 12,000kWh yearly usage).  

Heat pumps are reliable with low maintenance costs and require servicing just once around every 20 years vs 8 to 12 years for gas boilers, which also lowers long-term costs. 

Whilst air source heat pumps are very efficient – and therefore eco-friendly – they still run on electricity which is around 4 times more expensive than gas. This explains why costs are comparable to gas heating, but still lower on some tariffs. 

In short, air-source heat pumps do not generally yield tremendous energy savings in their own right, but that doesn’t paint the whole picture. You also have to take RHI payments into account.

RHI Payments

The RHI scheme pays a quarterly tariff based on how much energy you ‘generate’ with your heat pump. The current tariff as of 2021 is 10.85p/kWh. These payments last for 7 years. 

The RHI in its current form will close on 31 March 2022 and will be replaced by the Clean Heat Grant, which will be a more traditional-style grant design to cover installation costs. 

Whilst there are little details of the Clean Heat Grant, the RHI is currently generous enough to recover the majority of your heat pump’s upfront cost over the 7 years (or even leave you in profit), providing your house is very well-insulated.

For your system to qualify, the equipment and installer must be registered by the Microgeneration Certification Scheme (MCS).

Property SizeRHI Payments (over 7 years)
1-Bed Semi£6,076
2-Bed Semi£9,114
3-Bed Detached£12,912

Source: Ofgem

Green Homes Grant 

You can also account for some of the initial costs of an air source heat pump using the government’s Green Homes Grant. 

As of 2021, the Green Homes Grant can provide a voucher of up to £5,000 (or £10,000 for some low-income households), designed to cover a multitude of home improvements that yield green or low-carbon outcomes. 

The eligibility criteria specify that your home must already have high-grade wall, loft or cavity insulation suitable for low-carbon heating. You can pay for either the pump or the insulation using the Green Homes Grant. 

Get Pricing on Air Source Heat Pump Installations Near You

We’ve done our best to give you a good idea of what you can expect to pay for an air source heat pump.

However, our guides are not a substitute for a fixed quote specifically for you.

We work with all the best air source heat pumps experts ready to price your job. Get free, no-obligation quotes in your local area and compare prices using the form below.

  • Compare Multiple Quotes & Save Up to 40%
  • Certified & Vetted Installers
  • Free & No Obligation
  • Local Air Source Heat Pump Experts Near You

About the Author

Alex Johnson is a qualified quantity surveyor and writer with a passion for conducting original research and uncovering the true cost of jobs. His cost data has been referenced by EDF Energy and the Scottish Government.