How much does an ASHP installation cost?

When it comes to the cost of installing an air source heat pump, you’re typically looking at anywhere from £12,500 to £25,000. However, if you’re eligible for the BUS grant, you’ll save £7,500, or £9,000 until March 2027 if your home is heated by oil or LPG and has no mains gas.

So, what affects the cost? Some big examples are:

• The size and location of the heat pump and hot water cylinder
• The brand and quality of the equipment
• The number of radiator replacements and pipework upgrades
• And the base, drainage, and electrical requirements for the heat pump

It really does depend on your property. Ultimately, it’s important to speak with an industry professional (not a salesperson).

Good newsThere’s no VAT on heat pump installations since they qualify as an energy-saving material—unlike traditional heating systems, which are subject to 20% VAT.

Money-saving tipThe 0% VAT covers all items installed as part of the heat pump system, so if you’re thinking of adding underfloor heating, a water softener, or even a booster pump to increase water pressure, you could save a pretty penny by purchasing them at the same time as your heat pump.

Now, let’s talk grants! The most common grant is the BUS (Boiler Upgrade Scheme), which is available to homeowners who haven’t already received a heat pump grant, such as the RHI. You’ll also need an EPC. For full eligibility details, head over to OFGEM’s website.

There is also ECO4 for low-income households, which is due to close at the end of 2026, so if you think you qualify, check it out soon!