# Heat pumps UK: costs, grants and whether they’re worth it (2026) > Bills & utilities · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/bills-utilities/heat-pumps-uk-worth-it/ Markdown mirror: https://moneyguide.org.uk/bills-utilities/heat-pumps-uk-worth-it.md ## Quick answer Heat pumps can cut running costs versus old gas boilers if your home is well insulated and sized correctly — but upfront install costs of £8,000–£15,000 mean payback takes years. Government grants (Boiler Upgrade Scheme in England/Wales) reduce upfront cost; check eligibility and whether your radiators or emitters need upgrading. Heat pumps are increasingly considered as gas boiler replacements as energy policy and insulation standards evolve. This guide weighs costs, grants, suitability and running economics — not an installer recommendation. ## Key facts - Air source heat pumps (ASHP) are most common — typical install £8,000–£15,000 before grants - Boiler Upgrade Scheme grants in England/Wales have offered up to £7,500 toward ASHP — check gov.uk for current availability - Heat pumps work best in well-insulated homes; older solid-wall properties may need upgrade work first - Coefficient of performance (COP) of 3+ means 1 kWh electricity delivers 3 kWh heat — efficiency depends on flow temperature - Radiators may need enlarging or underfloor heating for lower flow temperatures ## Costs and grants Air source heat pump installation typically ranges from £8,000 to £15,000 depending on property size, brand and whether radiators or pipework need upgrading. Ground source systems cost more but suit rural plots with land. The Boiler Upgrade Scheme (BUS) in England and Wales has provided grants toward low-carbon heating — verify current grant levels and installer accreditation on gov.uk before committing. Scotland offers separate Home Energy Scotland loans and grants. Wales has Nest and other schemes for eligible households. Factor in potential electrical supply upgrade — older homes may need a higher-capacity consumer unit. ## Running costs vs gas Heat pumps move heat rather than generate it — efficiency (SCOP/COP) of 2.5–4 is typical. At electricity prices higher per kWh than gas, efficiency must be strong to match gas running costs. Homes with poor insulation force heat pumps to work harder — loft and wall insulation often pays back before or alongside a heat pump install. Time-of-use electricity tariffs (off-peak charging) can reduce running costs if the system is programmed to heat mostly when rates are low. ## When heat pumps are not suitable Flats with no outdoor space for a unit, listed buildings with planning restrictions, or homes needing major fabric upgrade may be poor candidates without significant investment. Very old single-pipe radiator systems may need full emitter replacement — adding thousands to the project. Hybrid systems (heat pump plus existing boiler) exist for hard-to-treat homes — compare total cost and complexity. ## Frequently asked questions ### Do heat pumps work in cold weather? Modern ASHPs operate in sub-zero temperatures but efficiency drops. Sizing for design temperature and good insulation matters more than headline COP. ### Is planning permission needed? Most domestic ASHPs are permitted development in England if noise and siting rules are met — listed buildings and conservation areas need extra checks. ### How does this compare with solar panels? Solar PV reduces electricity cost; heat pumps increase electricity use. Pairing solar with a heat pump and battery can improve economics — see our solar panels guide. ## Primary source https://www.gov.uk/apply-boiler-upgrade-scheme ## Related - [Solar panels UK](https://moneyguide.org.uk/bills-utilities/solar-panels-uk-worth-it/) - [Home insulation grants](https://moneyguide.org.uk/bills-utilities/home-insulation-grants/) - [Energy price cap explained](https://moneyguide.org.uk/bills/energy-price-cap-explained/) - [Green mortgage explained](https://moneyguide.org.uk/mortgages/green-mortgage-explained/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.