Is a heat pump right for your home? With government grants of up to £7,500 available and the push towards net zero heating, more UK homeowners are considering the switch. This comprehensive guide explains everything you need to know about heat pumps, costs, grants, and whether they’re suitable for your property.
What Are Heat Pumps and How Do They Work?
Heat pumps are remarkably clever devices that extract heat from the air, ground, or water outside your home and concentrate it to warm your property. Think of them as reverse refrigerators – instead of removing heat from inside a box, they capture heat from outside and bring it indoors.
The magic lies in their efficiency. Whilst a traditional electric heater converts 1 unit of electricity into 1 unit of heat (100% efficiency), a heat pump can produce 3-4 units of heat from just 1 unit of electricity. This is measured as the Coefficient of Performance (COP), and it’s why heat pumps are so much cheaper to run than direct electric heating.
Types of Heat Pumps: Which Is Right for You?
Air Source Heat Pumps (ASHP)
The most popular choice for UK homes, air source heat pumps extract heat from outside air and are suitable for most properties.
Advantages:
- Lower upfront costs (£6,000-£10,000 including installation)
- Easier installation with minimal disruption
- No garden space requirements
- Eligible for the full £7,500 BUS grant
Considerations:
- Efficiency drops in very cold weather (though still effective to -15°C)
- Outdoor unit requires space and may produce some noise
- Performance varies with outside temperature
Ground Source Heat Pumps (GSHP)
These systems use buried pipes to extract heat from the ground, offering higher efficiency but requiring more space and investment.
Advantages:
- Higher efficiency year-round (COP of 4-5)
- More consistent performance regardless of weather
- Longer lifespan (20-25 years)
- Very quiet operation
Considerations:
- Higher costs (£12,000-£20,000)
- Requires significant garden space
- More disruptive installation process
- Still eligible for £7,500 BUS grant (though this covers less of the total cost)
Hybrid Heat Pumps
Combining a heat pump with a traditional gas boiler, these systems switch between the two depending on efficiency and demand.
Advantages:
- Ideal for poorly insulated homes
- Lower running costs than gas-only systems
- Reduced upfront investment in insulation
- Can keep existing radiators
Considerations:
- Still relies partly on fossil fuels
- More complex system with two heating sources
- BUS grant eligibility assessed case-by-case
The Reality of Heat Pump Costs in 2025
Upfront Costs
- Air Source Heat Pump: £6,000-£10,000
- Ground Source Heat Pump: £12,000-£20,000
- Hybrid System: £8,000-£12,000
These figures include installation by MCS-certified engineers. The £7,500 Boiler Upgrade Scheme grant significantly reduces these costs, and VAT remains at 0% until 2027.
Running Costs: The Real Savings
Heat pump running costs typically work out to 5-8p per kWh of useful heat, compared to:
- Gas boilers: 10-12p per kWh
- Electric storage heaters: 30p+ per kWh
- Oil boilers: 12-15p per kWh
For an average UK home, this translates to annual heating bills of £400-£800 with a heat pump, compared to £800-£1,200 with gas and £1,500+ with electric heating.
The graph below shows the savings for air source heat pumps.
The graph below shows the savings for ground source heat pumps.
These graphs shows potential annual savings of installing a standard heat pump in a three bedroom semi-detached home, with radiator upgrades as needed. Taken from [Energy Savings Trust]
Additional Costs to Consider
Radiator Upgrades: Heat pumps work best with larger radiators designed for lower water temperatures. Budget £150-£300 per radiator for upgrades, or £1,500-£3,000 for a full house.
Insulation Improvements: Poor insulation reduces heat pump efficiency. Loft insulation (£300-£500) and cavity wall insulation (£500-£1,500) often pay for themselves within 2-3 years through reduced running costs.
Government Grants and Support in 2025
Boiler Upgrade Scheme (BUS)
The headline grant provides £7,500 towards heat pump installations, covering a significant portion of the cost for most systems.
Eligibility Requirements:
- Your property must have a valid EPC
- No outstanding recommendations for loft or cavity wall insulation
- Installation by MCS-certified installer
- Property must be your main residence
- Existing heating system must be being replaced (not supplemented)
Additional Support
ECO4 Scheme: Low-income households may qualify for additional support covering insulation improvements and sometimes the full cost of heat pump installation.
HUG2 (Home Upgrade Grant): Available in some areas for homes without mains gas connection.
Local Authority Grants: Some councils offer additional support – check with your local authority.
Do Heat Pumps Work in UK Weather?
This is probably the most common concern, and the answer is definitively yes. Modern air source heat pumps work effectively down to -15°C and below. Whilst efficiency does drop in very cold weather, they remain far more efficient than any form of electric heating.
Recent government field trials found that heat pumps achieved average seasonal performance factors of 2.5-3.0 across the UK, meaning they produced 2.5-3 times more heat than the electricity they consumed, even accounting for our variable weather.
Real-world performance varies by:
- Quality of installation and system design
- Property insulation levels
- Heating system design (radiator sizes and layout)
- User behaviour and temperature settings
This graph is an illustrative example to show how the potential temperature variance may impact the COP of a heat pump. Manufacture and device results may differ from this.
Choosing the Right Heat Pump Brand
The UK market offers several reliable manufacturers, each with different strengths:
Premium Brands
Mitsubishi Ecodan: Excellent reliability and widespread installer network. Strong performance in cold weather and comprehensive warranty support.
Vaillant aroTHERM Plus: Exceptionally quiet operation and smart home integration. Excellent build quality with strong UK support network.
Daikin Altherma: Advanced controls and modulation technology. Particularly good performance in challenging weather conditions.
Value Options
LG Therma V: Good efficiency ratings with competitive pricing. Sleek outdoor unit design suitable for space-constrained installations.
Samsung EHS: Reliable performance with comprehensive smart controls. Good warranty coverage and growing installer network.
Ground Source Specialists
Kensa Shoebox: UK-manufactured ground source systems, ideal for properties with limited space. Particularly good for flats and smaller homes.
When Heat Pumps Might Not Be Suitable
Whilst heat pumps work for most UK homes, some situations present challenges:
Property Characteristics
- Very poor insulation: Homes with EPC ratings of F or G may need significant upgrades first
- Single-glazed windows: Heat loss may be too high for efficient heat pump operation
- Very small radiators: Undersized heating systems may need complete replacement
- No outside space: Air source units need adequate ventilation and access
Practical Considerations
- Listed buildings: Planning restrictions may limit installation options
- Shared ownership: May require freeholder consent and complicate grant applications
- Immediate replacement needs: If your boiler has failed and you need heating urgently, heat pump installation timescales may be too long
When to Consider Alternatives
- Well-insulated homes with new gas boilers: The payback period may be 10+ years
- Properties heated by cheap fuel: Some rural areas have access to very cheap heating oil or coal
- Rental properties: Without long-term occupancy, the investment may not be worthwhile
The Installation Process: What to Expect
1. Initial Assessment (1-2 weeks)
Your installer will conduct a detailed heat loss calculation, assess your current heating system, and check EPC requirements. This determines the right size and type of heat pump for your home.
2. System Design (1-2 weeks)
The installer designs your complete system, including any radiator upgrades needed and the optimal location for the outdoor unit.
3. Grant Application (2-4 weeks)
Your MCS-certified installer applies for the BUS grant on your behalf. You don’t need to apply directly.
4. Installation (1-3 days)
The actual installation is usually completed in 1-3 days, depending on system complexity and any additional work required.
5. Commissioning and Handover (Half day)
The system is fully tested and you’ll receive training on how to operate your new heat pump efficiently.
Maximising Heat Pump Efficiency
Getting the Best Performance
Set and forget: Heat pumps work most efficiently when maintaining steady temperatures rather than frequent adjustments.
Lower flow temperatures: Run your system at 45-50°C flow temperature where possible, rather than the 70-80°C typical of gas boilers.
Smart controls: Use weather compensation and programmable controls to optimise operation automatically.
Time-of-Use Tariffs
Heat pumps pair excellently with time-of-use electricity tariffs:
- Octopus Go: 7.5p/kWh overnight (12:30am-4:30am)
- Economy 7: Cheaper rates for 7 hours overnight
- Agile tariffs: Rates that vary throughout the day
These tariffs can reduce running costs by 30-50% for heat pump users who can shift some heating demand to cheaper periods.
Environmental Impact: Beyond Cost Savings
Heat pumps significantly reduce carbon emissions compared to fossil fuel heating:
- Vs gas boilers: 50-70% reduction in CO2 emissions
- Vs oil boilers: 70-80% reduction in CO2 emissions
- Vs electric heating: 60-70% reduction in CO2 emissions
As the UK electricity grid becomes cleaner with more renewable energy, these savings will increase further. By 2030, heat pumps are expected to produce 80% fewer emissions than gas boilers.
Common Myths Debunked
“Heat pumps don’t work in old houses”
Reality: Whilst newer homes are easier to heat efficiently, many Victorian and Edwardian properties successfully use heat pumps. The key is addressing major heat loss first through insulation and draught-proofing.
“Heat pumps are too noisy”
Reality: Modern heat pumps operate at 40-50 decibels, similar to a quiet conversation. Proper installation and positioning minimise any noise impact.
“Heat pumps break down frequently”
Reality: Heat pumps have fewer moving parts than gas boilers and typically require less maintenance. Annual servicing is recommended but major repairs are uncommon.
“You can’t get hot water quickly”
Reality: Heat pumps with thermal stores provide hot water on demand. Recovery times are comparable to conventional systems.
Finding the Right Installer
Choosing a quality installer is crucial for heat pump success. Only MCS-certified installers can access BUS grants, but certification alone doesn’t guarantee quality.
What to Look For
- MCS and TrustMark certification
- Local references and case studies
- Detailed heat loss calculations (not just guesswork)
- Clear warranties on both equipment and installation
- Post-installation support and maintenance options
Questions to Ask Potential Installers
- Can you provide references for similar properties in my area?
- What heat loss calculation method do you use?
- Will you handle the BUS grant application process?
- What ongoing support do you provide after installation?
- Are you qualified to work on the specific brand you’re recommending?
Our Recommended Provider
After extensive research and feedback from homeowners across the UK, we recommend Blue Ape Renewables for heat pump installations. They consistently deliver high-quality installations with excellent customer service and comprehensive aftercare support.
Blue Ape Renewables are fully MCS-certified and handle the entire BUS grant application process on your behalf. Their team takes time to properly assess each property and design systems for optimal efficiency and reliability.
Get a free heat pump assessment from Blue Ape Renewables
Disclosure: We may receive a small commission if you choose to work with Blue Ape Renewables, at no additional cost to you. This helps support our independent research and content creation. Our recommendation is based on their track record of quality installations and customer satisfaction.
Should You Wait or Act Now?
Reasons to Install Now
- Grant availability: The £7,500 BUS grant may not continue indefinitely
- 0% VAT: Reduced VAT rate ends in 2027
- Immediate savings: Start benefiting from lower running costs straight away
- Proven technology: Current heat pumps are reliable and well-supported
Reasons to Wait
- Major renovation planned: If you’re planning significant building work in the next 12-24 months
- Boiler recently replaced: If your gas boiler is less than 5 years old and working well
- Uncertainty about staying: If you might move house within 5 years
For most homeowners, the benefits of acting now outweigh waiting for future developments.
Next Steps: Your Heat Pump Journey
Step 1: Check Your EPC
Obtain a current Energy Performance Certificate to understand your home’s insulation status and identify any improvements needed for BUS grant eligibility.
Step 2: Get Professional Assessment
Contact an MCS-certified installer for a detailed heat loss calculation and system design. This should be free and without obligation.
Start with a free assessment from Blue Ape Renewables
Step 3: Address Any Insulation Issues
If your EPC identifies outstanding insulation recommendations, address these first. ECO4 funding may be available to help with costs.
Step 4: Compare Quotes
Get quotes from at least 2-3 MCS-certified installers to compare system designs and prices.
Step 5: Move Forward
Choose your installer and let them handle the BUS grant application process while you prepare for installation.
Useful Resources and Calculators
Government Information:
Independent Calculators:
Additional Support:
This guide is regularly updated to reflect the latest government schemes, technology developments, and market changes. Last updated: May 2025.
→ Learn which UK grants might help fund your battery installation in our [Home Energy Grants Guide]