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Heat Pump Cost – How Much Do Heat Pumps Cost in the UK?

heat pump cost

With a rising interest in making homes greener, there’s a growing market for ways to heat and cool homes that are good for the environment.

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The easiest way to reduce a carbon footprint is to find ways to avoid using fossil fuels when heating and cooling your home.

Many homes today are heated with things like a gas boiler that uses harmful natural gas for energy. To combat this hydrogen ready combi boilers are now available for the use of hydrogen fuel in the future.

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Heat pump cost – Why are they worth it?

These days, though, there are some new approaches you can take that replace gas with things like electricity.

heat pump cost

Machines like hydrogen ready boilers and heat pumps can save you some money on the heating bill, as you lessen your usage of natural gas in favour of renewable energy.

In this article, we’re going to focus on the heat pump, an increasingly popular heating and cooling solution for homes.

Read on to learn more about the heat pump, heat pump cost, and ways you can save on costs if you invest in your own heat pump unit.

What is a Heat Pump?

Let’s begin by figuring out what exactly a heat pump is, and how they work.

A heat pump is an energy-efficient heating system that moves air from one place to another, controlling your home’s internal temperature.

heat pump cost

While models of heat pumps can vary, all of these units work by either drawing warm air in and expelling it into your home, or pulling warm air out to keep the internal temperature of your home cool.

When looking at the market you’ll find electric heat pump models, water heat pump models, ground source and air source models, and much more.

As demand for green technologies grows, the market is seeing new variations of the heat pump that suit the needs of different people and spaces.

These units replace both air conditioning and home heating, with their ability to raise or lower temperature inside the home.

They can also save you money on energy bills, as a heat pump does not use costly natural gas for fuel, and has lower carbon emissions.

What Affects Heat Pump Pricing?

Shopping for a heat pump system can be a pricey project, but well worth the investment. Let’s take a look at some of the factors that can affect heat pump costs, raising heat pump prices.

Unit Size

heat pump cost

The bigger the unit, the higher the price! When shopping for a heat pump system, it’s important to find one that’s just the right size so you’re not overpaying for a unit larger than you need.

Typically, heat pump capacity will be rated in the tons.

A 1-ton heat pump is suitable for a small 500 square foot space, whereas a 2500 square foot space could benefit from a 5-ton unit. Always keep your home size in mind while shopping.


Like most things in life, big brands demand big money. It’s a good idea to shop around on the market, comparing different brands and their units to see what is in your price range. Take a look at some of the best heat pumps from Vaillant right now.

Heat pump nstallation cost

Along with buying your heat pump, you’ll also have some associated costs when it comes to heat pump installation. Depending on the kind of heat pump you purchase, the installation will be more or less expensive.

heat pump installation

For example, installing a ductless heat pump will cost a pretty average installation fee. In comparison, installing geothermal heat pumps is significantly more expensive.

These heat pumps need to be buried in the ground, meaning the heat pump installer will have to do some geological excavation to place them. The kind of installation required can greatly impact your heat pump installation cost.

Type of Heat Pump

heat pump cost

Finally, the type of heat pump you use will determine the cost. Are you buying small water source heat pumps?

Or a massive geothermal heat pump system? Different versions of the heat pump will vary in price, which we’ll explore further below.

How Much Does a Heat Pump Cost?

So, just how much does a heat pump cost? As we’ve touched on above, it varies based on what kind of heat pump you’re shopping for. Let’s look at some popular heat pump models as alternatives to gas boilers and explore their average pricing

Ground Source Heat Pump

heat pump ground source
Image Credit: Shutterstock

A ground source heat pump is probably the most expensive version of the heat pump. These units heat and cool homes via heat in the ground outside your home, captured by tubing that is looped underground.

A hot water fluid will flow through the pipes, made hot by the heat absorbed from the ground, which then heats your home. When cooling your home it does the reverse, capturing heat and dumping it into the ground.

heat pump cost

These systems can be significantly more expensive than other kinds of heat pumps, coming in a wide range of sizes, models, and power levels. The factors we listed above will all factor into the price tag.

Some may try different money saving tricks to avoid the high upfront cost of one of these heating systems.

The type of groundwork you get done will also impact the price, with horizontal groundwork costing less than vertical groundwork.

While it’s not easy to determine an exact price for one of these models, we can determine a rough price range you should keep in mind.

For a typical two-bedroom home, you can expect a ground source heat pump system to cost between £20,000-35,000 pounds.

This price range includes the cost of the unit and fees associated with its installation. It may sound high, but ground source heat pumps have a long life span, and you should see savings on your energy bills over the years that help to rationalize the price point.

Air Source Heat Pump

air source heat pumps installed on the exterior of a modern house cost
Image Credit: Shutterstock

When compared to a ground source heat pump, these units come at a much cheaper price point.

Air source heat pumps are a little less complicated than geothermal heat pumps, not requiring extensive excavation to be installed.

These units work by transferring absorbed heat from the air outdoors inside, transferring air through the system’s condenser and into the home. For cooling, these units will draw hot air out, expelling it outside to keep the inside of your home cool.

When shopping for a typical 2 bedroom home, a Vaillant air source heat pump can cost anywhere from £8,000-18000 depending on the unit type, brand, and size.

This price range includes both the price of the air heat pump, as well as the associated installation fees.

Saving money with incentives to buy heat pumps

You might be looking at the estimated pricing above and feel a bit of sticker shock. It’s true that these units can be expensive, but thankfully, there are ways to save money on their installation of them. It all comes down to finding a beneficial heat incentive with heat pump grants.

heat pump cost do they save money?

Those looking to switch from using British gas to renewable heat and cooling sources like a heat pump will be thrilled to learn about the incentives available.

By claiming a renewable heat incentive, you can experience massive help on your investment into a new heat pump system.

The Domestic Renewable Heat Incentive (RHI) is the most popular. When you apply, you can get money to put towards purchasing renewable heat technologies for your home.

This includes certain kinds of heat pumps, as well as different kinds of boilers and solar water heating. Best of all, it’s super easy to apply online!

For those looking to outfit a public space, business, or organization, you can apply to the Non-domestic Renewable Heat Incentive (RHI). This will cover a wider range of renewable energy systems, including heat pumps, solar thermal collectors, combined heat and power systems, and much more. Those looking to create a greener business could truly benefit.

And finally, you can receive a loan through the Green Deal to make home improvements that benefit the environment. This can be used for smaller heat pump systems, as well as other energy-saving approaches: adding insulation, glazing windows, installing solar panels, etc.

With so many great incentives, there’s no reason not to invest in some new renewable ways to heat and cool your home!

Will a Heat Pump Save Me Money?

With all of the associated costs, many buyers might wonder what makes investing in renewable heating and cooling worth it.

heat pump cost questions

Besides making the world a little greener and cutting out fossil fuel use, are there any benefits? Turns out the answer is yes, and that benefit is saving money.

The transition towards using sustainable, environmentally friendly fuel sources is good for the planet, and for people’s pockets. Cutting down on your usage of fossil fuels can lead to big savings on your monthly bills.

According to the Energy Saving Trust, there are some significant savings to be had when switching to a heat pump in your home.

This may depend on the type of heat pump you get, for example the hybrid heat pump can save you a great sum of money on energy bills overall, it will also reduce your carbon footprint. However the initial up front cost is more expensive then your regular heat pump.

Switching from gas to a heat pump system can save you between £790-1425 on your electric bill annually. Those are some nice savings, and will only add up over time.

Are There Alternatives to Heat Pumps?

Boiler room with a heating system
Image Credit: Shutterstock

If you’re unsure if a heat pump is the right product for you, there are plenty of alternatives on the market to explore!

In the interest of keeping things green, we’d like to suggest you look for other heating and cooling systems that are better for the environment than those that use fossil fuels.

We love the use of hydrogen boilers in homes looking to live a little greener. These units can replace the use of natural gas in your home, utilizing hydrogen instead.

A hydrogen boiler will burn and heat up your home’s water supply and travel through your natural gas pipelines in your home. It’s a great way to reduce carbon emissions and be kinder to the environment.

energy efficient heat pump cost

These can also be a great choice if you live somewhere with a climate that isn’t compatible with heat pump systems.

In climates that reach extremely cold temperatures below zero, a heat pump can struggle to adequately heat a home. This is due to the lack of heat in the air for the system to draw into the condenser and expel inside.

It’s actually recommended that those in extreme climates utilize a heat pump system in conjunction with another heating system.

This way they can still experience the savings and positive impact of a heat pump for a majority of the year, while still staying warm in the winter months. If this is a reality for you, consider the use of both a hydrogen boiler and heat pump system in your home.

Should you buy a heat pump?

hydrogen ready boilers are better than heat pumps

Are you ready to invest in new technology for your home? If you are totally sure then it may be a good option, but we believe the only logical and most effective long-term solution is hydrogen.

Once hydrogen can be made cheap and transported around the current gas network, it will make heat pumps far less attractive.

We know there’s a lot to consider, including hydrogen ready boilers and choosing between air source and ground source, creating a budget, and looking for incentives.

With some of the big downsides the lack of high temperatures from heat pumps, with a hydrogen ready boiler you can be sure that your home will be as warm as you need it all year round

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