Heat pumps: costs, grants and funding

Last reviewed: 20 July 2026

An air source heat pump typically costs between £7,500 and £16,500 installed, depending on your home. A £7,500 Boiler Upgrade Scheme grant comes off that in England and Wales, and the Warm Homes Loan can fund the balance, including radiators and pipework.

What they cost

Installed prices by property type, and where the money goes.

Heat pump costs

Grants and funding

The grant, the loan, and how they stack for a heat pump.

Heat pump grants

Running costs versus a gas boiler

A modern heat pump delivers around 3.4 units of heat for every unit of electricity it uses. Paired with solar, a battery and a time-of-use electricity tariff, running costs can be up to 50% cheaper than a gas boiler, because you power the pump largely from your own generation and cheap off-peak electricity rather than the grid at peak rates. Our calculator shows the saving for your property type.

Estimate a heat pump for your home

Sources

  • GOV.UK Boiler Upgrade Scheme guidance
  • DESNZ Warm Homes Loan Scheme Scheme Rules, June 2026, via GOV.UK
  • Ofgem July 2026 price cap

Last reviewed: 20 July 2026

Know the day the loans go live

The Warm Homes Loan Scheme is expected to open to the public in September 2026. Join the list and we will email you when lenders open, with occasional funding updates in between.

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