Planning to upgrade your heating system? The best switching option for London homes can be an air source heat pump. First things first, you might be thinking of costs. Air source heat pump installers cost around £3000-£15000. However, you might get the upper hand with a government grant or scheme.
An air-source heat pump is an energy-efficient and eco-friendly option. It can save more than 50% on running costs compared to a gas boiler. Unlike gas boilers, it filters out carbon monoxide, keeping the air fresh. Before you install it, you must look for capabilities within your budget.
Here, we’ll cover the detailed cost of an air source heat pump and how government grants can help you save on it.
What Does an Air Source Heat Pump Do?
An air source heat pump filters outside air and extracts fresh air inside the house. It provides heating and hot water using the renewable energy of air.
An air-source heat pump reduces carbon emissions and keeps the environment healthy. It’s highly beneficial to respiratory health as it filters out dust and pollutants.
Air source heat pumps can supply both hot and cool air. Two types are available: air-to-air heat pumps and air-to-water heat pumps.
Air-to-air heat pump: Provides heating all over the house. It doesn’t include a hot water supply.
Air-to-water heat pump: It offers both heating and hot water.
Air Source Heat Pump Cost Breakdown in 2025
For instance, air source heat pumps seem expensive, but they are real cost savers. Gone are the days when people chose between gas, electric, or oil boilers.
You can expect to pay for the supply, installation, running, and maintenance costs for an air source heat pump. Government grants can significantly chunk off from the total bill. The supply cost of an air source heat pump is around £2150-£8700+.
You should keep in mind that an air source heat pump generates heat, not spreads the heat. So you must connect it with radiators or underfloor heating. Let’s delve into the cost breakdown-
ASHP Installation & Supply Cost
Select a top-rated brand that meets your required capabilities and budget. Here is an approximate supply and installation cost for air source heat pumps:
| Air Source Heat Pump Type | Cost Type | Cost Range | Average Cost |
|---|---|---|---|
| Air-to-air heat pump(5kW) | Supply and Install | £2000-£4000 | £3000 |
| Air to water(5kW-17kW) | Supply Only | £5000-£9000 | £7000 |
| Air to water | Installation Only | £6000-£11000 | £8000 |
Air Source Heat Pump Running Cost
The running costs depend on some factors-
Heat Pump Type: An air-to-water heat pump requires an extra water tank for storage and installation, which costs more.
Room Temperature Demand: High temperatures can raise the running cost.
ASHP’s coefficient performance: The running cost depends on the heat demand and how much heat your ASHP creates per unit.
Radiator Size: The more radiators you need, the more the cost will increase.
Energy Tariff: Check your energy tariff to determine if the running costs are high due to misconnection.
An air source running cost can add around £855-£1700 per year to your existing electricity bill for 800-1700kWh. However, it is saving your gas bill and still costs less to run than a gas or oil boiler. An oil or gas boiler costs around £2000 to run. The estimation can vary due to factors upward.
Servicing Cost of Air Source Heat Pumps
The cost of maintaining or servicing an air source heat pump by heating engineers can be around £150-£300. Homeowners can perform basic maintenance by checking for debris and dust in the duct, coil, or filter. We recommend that a maintenance service be performed once a year. Sometimes, service providers include maintenance in their plans. That’s a bonus for sure.
Additional Costs for Air Source Heat Pumps
Apart from supply, installation, running, and maintenance costs, ASHP might require some additional costs. The extra costs can be:
Old Equipment Removal Cost: Before an ASHP installation, you must remove the old heating source and the gas meter to eliminate gas bills. Then, convert everything to an electronic system.
Water Tank Installation: Since you won’t use a gas/oil boiler, you must connect your ASHP to a water storage tank. It will be an additional cost.
Replacing the old radiator with a large one: Your current radiator might not be able to meet the new ASHP heating demand. To meet that demand, you’ll need a new large radiator or more radiators.
New pipework: If you’re using an underfloor heating system, you might need additional pipework once you install an ASHP.
The Best Heating Source: Traditional Heating or ASHP?
Is an air source heat pump better than traditional heating sources like a gas boiler or oil boiler? Technically, yes. Air source heat pumps are more energy efficient and environmentally friendly than boilers. They emit less carbon and use renewable energy, such as air. Let’s discover the technical comparison according to CheckaTrade:
| Heating System | System Type | Lifespan | Resource Type | Grant/Scheme Availability |
| Air Source Heat Pump(ASHP) | Air-to-air | 15-20 years | Renewable | Available |
| Air-to-water | 15-20 years | Renewable | Available | |
| Traditional Boiler | Gas Combi Boiler | 10-15 years | Non-Renewable | Not Available |
| Biomass Boiler | 20-30 years | Renewable | Available |
Radiators vs Underfloor Heating: Which is more efficient for ASHP?
Air source heat pumps(ASHP) require low-temperature heating. Radiators usually create high heat for instant heating(70°C-80°C), and may fluctuate in temperature, leading to hot and cold spots. An air source heat pump runs in 35°C-55°C. As a result, radiators carry cooler water than usual and take longer to heat a wide space. If you connect an ASHP with radiators, you’ll need more radiators(10 or more) or a large radiator. That may cost you around £3000.
On the other hand, underfloor heating is suitable for low-temperature heating over a large surface. If you want to connect your air source heat pump with underfloor heating, use an air-to-water heat pump.
What Can Impact an Air Source Heat Pump Cost?
Budgets must always include a 10% extra. You never know what may happen during the installation. However, some factors may influence the installation of an air source heat pump. The factors are:
Property Size:
The larger a property is, the more powerful an air source heat pump it will need. Hire professionals to assess your home’s heat load(kWh). Air source heat pump installers cost more for an expanded property, as the scope of work increases.
Number of radiators:
You might need to replace your radiator with a large one or install more radiators, as ASHP-connected radiators run cooler water than typical ones. Additional radiators or replacements affect the budget.
Type of Heat Pump:
An air-to-air heat pump installation is simple. However, an air-to-water heat pump requires an extra water storage tank, which impacts the cost.
Condition of Insulation:
Improper insulation can lead to high energy bills. Check to see if your insulation is properly done or needs additional insulation.
Room Temperature Preference:
The perfect temperature in London homes is typically 18°C-21°C. If you prefer more than 22°C in your room, the energy bills will increase accordingly.
Can You Save on Air Source Heat Pump Costs?
Government or organisational schemes can save a lot on your ASHP cost. However, you must be eligible to ask for the grants. Other schemes and options are available, such as interest-free or low-interest loans. Apart from these options, you have different ways to save costs. If you’re on a tight budget, this segment is for you.
Apply for the BUS Scheme
The Boiler Upgrade Scheme(BUS) grants up to £7500 for an air source heat pump cost if you’re eligible for it, meeting the criteria. It is extended to homeowners in England and Wales only.
Apply to the ECO4 for Funding
ECO4 offers grants up to 100% coverage to vulnerable and low-income households in Great Britain (except Ireland). If you are eligible, you can apply for ECO4 funding for a new air source heat pump installation.
Try getting Grants, Loans, or Schemes
Homeowners in Scotland can have grants up to £7500 or ask for an interest-free loan of £7500. You can apply to the Home Energy Scotland organisation if you’re eligible. Another scheme by the organisation is Warmer Homes Scotland. It covers up to £10,000. Both schemes are extended to homeowners in Scotland only.
Apply for Warm Home Nest Scheme
The Welsh Government Nest Scheme helps lower energy bills and carbon footprints. It is only for Welsh homeowners. The Warm Home Nest scheme covers up to £5000.
Compare Multiple Quotes
Choose a reasonable quote by comparing multiple quotes. Search for convenience that matches your budget. Ensure the heat pump installers have RECC(Renewable Energy Consumer Code) or MCS(Microgeneration Certification Scheme).
Ensure Proper Insulation
Maintaining proper insulation helps the heating system function properly and reduces energy bills. Perfect insulation saves a lot in the long term.
Final Thoughts
The cost of an air source heat pump includes supply, running, and maintenance. You can also count on air source heat pump installers cost. If you get a grant, that’s a plus. However, proper execution depends a lot on the budget.
Regardless of high installation and running costs, an air source heat pump benefits you financially in the long run. The best part? It uses renewable energy that keeps Mother Nature toxic-free.
FAQ:
How much do air source heat pumps cost to install?
According to Checkatrade, installing air source heat pumps costs between £3000-£15000. However, the cost may vary if impacted by any cost-affecting factor. You can contact us for more queries.
Why is my electric bill so high with an air source heat pump?
Even with an air source heat pump, your electric bill can be high due to poor insulation, improper setup, incorrect assessment, or lack of maintenance. If the bills are high, check for the issue.
Do you need radiators with a heat pump?
You don’t necessarily always need a new radiator with a heat pump. If your radiator is large enough, it can be sufficient for the heat pump. You can also use an underfloor heating system instead of radiators.
What is the lifespan of a heat pump?
If properly maintained, a heat pump’s average lifespan is typically 15-20 years. However, a lack of maintenance can lower the lifespan.
Do air source heat pumps use a lot of electricity?
Air-source heat pumps use as much electricity as they require to run. However, they are energy efficient and use less electricity than a traditional electric heating system.
Is a heat pump cheaper than gas?
A heat pump can save households more than 50% on running costs compared to a gas boiler. Heat pumps are energy-efficient and lower-cost than a gas system.
Are heat pumps noisy?
Newer heat pumps are modern and designed to be silent. They typically make a low whirring or humming noise, like a refrigerator, and the sound remains between 40-60 decibels.