Quick answer: An air source heat pump costs a modelled average of £11,014 to install in July 2026 — but the £7,500 Boiler Upgrade Scheme grant cuts the typical out-of-pocket cost to £3,514. Households could save up to £452 a year (estimate), for a grant-assisted payback of around 8 years.
These figures come from our UK Home Energy Cost Index. Heat pumps are the biggest-ticket upgrade we model, and the one where a grant changes the maths most dramatically — so we show costs both before and after the Boiler Upgrade Scheme. For how the technology works, see our heat pump guide.
Key heat pump statistics for 2026
- The average air source heat pump installation in the UK costs £11,014 before grants — Green Reach Energy Cost Index, July 2026 (modelled).
- Typical heat pump installations range from £7,159 to £17,072 depending on property and system size — Green Reach Energy Cost Index, July 2026 (modelled).
- After the £7,500 Boiler Upgrade Scheme grant, the modelled average out-of-pocket cost falls to £3,514 — Green Reach Energy Cost Index, July 2026 (modelled).
- London has the highest modelled heat pump cost at £13,217; Northern Ireland the lowest at £10,133 — Green Reach Energy Cost Index, July 2026 (modelled).
- The London–Northern Ireland spread is £3,084 — roughly 30% — Green Reach Energy Cost Index, July 2026 (modelled).
- A North West installation averages £10,463, about £550 below the national figure — Green Reach Energy Cost Index, July 2026 (modelled).
- Scotland’s modelled average is £10,573 — though note the BUS grant itself only applies in England and Wales — Green Reach Energy Cost Index, July 2026 (modelled).
- Switching to a heat pump could save a typical household up to £452 a year (estimate) — Green Reach Energy Cost Index, July 2026 (modelled).
- Modelled simple payback is around 24 years without a grant, or about 8 years after the £7,500 BUS grant — Green Reach Energy Cost Index, July 2026 (modelled).
- The standard BUS grant remains £7,500 for air source and ground source heat pumps — GOV.UK, checked July 2026.
- A targeted £9,000 BUS uplift applies only to homes currently heated by oil or LPG, running 21 July 2026 to 31 March 2027 — GOV.UK.
- Air-to-air heat pumps qualify for a £2,500 BUS grant from April 2026 — GOV.UK.
- Heat pump running costs hinge on electricity at 26.11p/kWh under the July–September 2026 Ofgem price cap.
Heat pump costs by UK region
Regional prices below are before any grant. In England and Wales, subtract £7,500 (BUS) from these figures for an eligible installation; Scottish households should look to Home Energy Scotland instead, as BUS does not apply there.
| Region | Modelled average installed cost | vs UK average |
|---|---|---|
| UK average | £11,014 | — |
| London | £13,217 | +20% |
| South East | £12,336 | +12% |
| East of England | £11,675 | +6% |
| South West | £11,565 | +5% |
| West Midlands | £10,794 | −2% |
| East Midlands | £10,684 | −3% |
| Scotland | £10,573 | −4% |
| Yorkshire & the Humber | £10,463 | −5% |
| North West | £10,463 | −5% |
| Wales | £10,353 | −6% |
| North East | £10,243 | −7% |
| Northern Ireland | £10,133 | −8% |
All modelled figures on this page come from the Green Reach Energy Cost Index — our July 2026 estimates built from national installed-price baselines and regional labour indices, not quotes for your specific home. Real heat pump prices vary with property type, spec and installer, so treat these as a starting point and read how we calculate costs for the full method and its limitations.
The grant picture
The Boiler Upgrade Scheme pays £7,500 towards air source and ground source heat pumps in England and Wales, with no income test — your MCS-certified installer applies on your behalf, and the application date sets the amount. From 21 July 2026 to 31 March 2027 there is a targeted £9,000 uplift, but only for homes currently heated by oil or LPG; it is not the standard rate. The scheme runs to March 2030 with a £400m budget for 2026-27. Our step-by-step BUS guide covers eligibility and how to claim.
Wondering how these modelled savings translate to your home? Try the savings calculator, or check the air source heat pump glossary entry for the jargon.
Download the dataset
The full Cost Index — 9 upgrades × 12 UK regions, July 2026 — as CSV: gre-cost-index.csv. Free to reuse with attribution (CC BY 4.0) — please credit Green Reach Energy and link the methodology. Figures are modelled estimates, not quotes.