Heat pump installation: £8,000–£15,000 for air-source, reduced to £500–£7,500 after the BUS grant. Off-gas-grid properties can claim £9,000 until March 2027. Here are the real numbers.
| Type | Installed cost | BUS grant | Net cost |
|---|---|---|---|
| Air-to-water (most common) | £8,000–£15,000 | -£7,500 | £500–£7,500 |
| Air-to-air | £3,000–£7,000 | -£2,500 | £500–£4,500 |
| Ground-source | £15,000–£35,000 | -£7,500 | £7,500–£27,500 |
| Air-to-water (off-gas-grid) | £10,000–£14,000 | -£9,000 to Mar 2027 | From £1,000 |
| Gas boiler | ASHP (standard tariff) | ASHP (HP tariff) | |
|---|---|---|---|
| Fuel cost per kWh heat | ~7p | ~7–11p | ~3–7p |
| Annual cost (3-bed) | £850–£1,200 | £900–£1,400 | £500–£900 |
| Carbon | High | Low & falling | Low & falling |
The tariff matters enormously: On a specialist heat pump tariff (Cosy Octopus, OVO heat pump) with overnight rates 7–15p/kWh, running costs match or beat gas. On a standard 28p/kWh tariff, heat pumps can cost more.
It depends on your tariff. On a specialist heat pump tariff (7–15p/kWh), yes — comparable or cheaper than gas. On a standard tariff (~28p/kWh), often more expensive. The gap improves as the electricity grid decarbonises.
Air-to-air heat pumps start from £3,000–£7,000 installed (£500–£4,500 net of £2,500 BUS). They provide heating and cooling but not hot water.