Costs · Updated quarterly
What does a heat pump actually cost in 2025?
Three numbers matter: install cost, running cost, and payback period. We publish all three with sources cited inline.
Install cost
By property size, before and after grant.
Source: aggregated MCS installation records, 2024 calendar year, UK average. Updated Q1 and Q3 each year.
| Home | Air source | After BUS (£7,500) | Ground source |
|---|---|---|---|
| Small flat (1 bed) | £7,000–£9,500 | £0–£2,000 | £14,000–£20,000 |
| 2-bed terrace | £8,500–£11,500 | £1,000–£4,000 | £16,000–£22,000 |
| 3-bed semi | £10,500–£14,500 | £3,000–£7,000 | £18,000–£26,000 |
| 4-bed detached | £12,500–£17,000 | £5,000–£9,500 | £22,000–£32,000 |
| 5+ bed / large detached | £14,500–£22,000 | £7,000–£14,500 | £26,000–£45,000 |
Get a personalised cost in 90 seconds.
Enter your property and current heating. The calculator returns install cost, BUS-net cost, annual running cost vs your current fuel, and 10-year totals. Ships in Phase 1 — the methodology is published below.
Costs — frequently asked
What's the cheapest a heat pump install can realistically be?
After the £7,500 BUS grant, well-suited 2-bed or small properties can be installed for £3,000–£5,000 out of pocket. Larger or more complex installs (heritage homes, poor existing pipework, off-grid) can run to £10,000+ out of pocket even after the grant.
Are running costs cheaper than gas?
For well-insulated homes on a heat-pump tariff like Octopus Cosy, yes — typically £600–£900/yr cheaper than a 15-year-old gas boiler. For poorly insulated homes on a flat tariff, a heat pump can cost the same or slightly more to run than gas. Insulation and tariff choice matter more than the heat pump itself.
How is "payback period" calculated?
We take your net install cost (after grant), divide by your annual running-cost saving vs your current heating, and add a small maintenance allowance. Typical UK payback after BUS is 8–14 years against gas; 4–8 years against oil; 3–6 years against LPG.
Eligible for the grant? See net cost first.
Check eligibility in 60 seconds, then come back here to model net out-of-pocket cost and savings.