How Much Does It Cost to Install a Heat Pump?Price Breakdown

Heat pumps have become popular in recent years due to the various benefits they provide. Whether that’s providing a more energy-efficient home to helping you save money on your energy bills. Along with the incentive grants provided by the government, if you choose to install a heat pump into your home, it’s worth exploring how much it’ll all cost for your property.

In this guide, you’ll learn everything you need to know about heat pump installations and a full price breakdown depending on what type of home you have, the type of heat pump you choose, as well as the running costs that come with having a heat pump in your home.

Heat pumps are certainly an opportunity to make your energy use more efficient and hopefully save some money over time. 

Let’s start with heat pump installation costs. How much would you expect to pay when it comes to the installation of the heat pump itself?

Typically, installation costs for a heat pump will vary from place to place. Influences on the price you pay might be down to the local area you live in and what heat pump installation providers are available. The type of heat pump you choose will also influence how much you spend. 

Usually, you’ll find that the cost of an installation is tied up alongside the purchase of a heat pump so it’s good to know whether you’ve found a reasonably priced service for installation but you want to buy the heat pump directly from another supplier.

It’s worth knowing that in general, you pay half for the heat pump and half for the installation. So for example, if the heat pump costs around £5,000-£10,000, you’re likely going to see a similar amount for the installation.

Therefore it’s certainly not a cheap purchase and that’s why a government grant is a worthwhile option to help bring down the overall costs. It does put some people off when they realise how much of an upfront cost it is. However, if you’re willing to make that cost upfront, you’re likely to save a lot of money in the future as a result.

The cost of a heat pump system isn’t cheap to buy, nor is it cheap to install. Thankfully though, if you’re located in England and Wales, the government is looking to encourage homeowners to upgrade their boilers with a low-carbon heating system. 

Offering a £7,500 discount, you could get a heat pump installed for a fraction of the price, which means you might make money back quicker as a result of utilising this grant available.

So when it comes to choosing the heat pump itself, what are your options? The type of heat pump you choose will certainly influence the amount you pay overall. Let’s take a look at what heat pump types are available and how this influences your pricing.

You have two main types of heat pumps to choose from. These are air-source heat pumps (ASHP) and ground-source heat pumps (GSHP).

Air source heat pumps (ASHP)

These heat pumps have a further two categories; air-to-air heat pumps and air-to-water heat pumps.

As far as heat pumps go, the air source options seem to be the most popular amongst homeowners in the UK. Mainly due to the fact they’re cost-effective, easy enough to install, and can help to reduce a household’s carbon footprint.

So what’s the difference between the two subcategories of air-source heat pumps?

With air-to-air pumps, they work well at cooling and providing a cost-effective solution. Air-to-water heat pumps are a bit more complex in their heat solution – but in a good way. They help take the heat from the outside air to help warm up the water. This is then transferred to the radiators, to the taps and underfloor heating.

For air-to-air heat pumps, you get outside air that’s fed into the home through fans. As a result, this system can be used for heating but it won’t be able to produce hot water.

Air-to-air heat pumps take heat from the outside air and feed it into your home through fans. This type of system can be used for heating but can’t produce hot water.

Ground source heat pumps

The second option of the two and the least popular is a ground source heat pump. These are low-carbon energy sources that are highly efficiency but are often more expensive than air-source heat pumps. 

The installation process can also be a bit more of a logistical nightmare and result in a lot of disruption that might be a lot on a household – particularly ones with young children running around.

A ground-source heat pump works by harnessing the natural heat found underground. This is used to pump liquid through the pipes. The heat pump is then able to increase the temperature and the heat used to help provide heating or hot water within your home.

Having multiple options is good but it’s worth weighing up the pros and cons of each in order to figure out which one is the best pick for you and your home. Even though one might be the more popular choice, you might find that you’re leaning towards the ground source heat pump because it matches what you need in the home.

The cost of a heat pump system varies depending on how much you’re willing to spend and the size of your home. Certain-sized homes are going to need more power to help heat the home and therefore that often equates to needing a larger system.

Heat pumps are an efficient and reliable way to heat your home without the use of gas and oil. Many homes operate a hybrid of gas or oil along with electricity. However, with more households becoming conscious of their carbon footprint, getting rid of gas altogether is a great way to be more eco-efficient.

A heat pump system will vary in cost depending on your home. In general, you can expect to pay anywhere between £7,000 to £30,000 and over to buy and install a heat pump. This depends on the size of the home and the type of heat pump as mentioned above.

As your home is running on electricity, it’s going to help keep your carbon footprint low and help save you money over time so that you can hopefully make a return on your investment eventually.

In order to maximize the returns on what you make from spending money on a heat pump system, you’ll need to make sure you’ve insulated your property successfully.

The benefit of heat pumps is that they’re three times more efficient than boilers, making them a great option for heating up the home. 

How much should you spend on a heat pump system? Is a certain amount too much to spend? When you’re spending over £30,000, you should be getting a premium service. The best of the best in heating pumps themselves but also the best installation service.

It’s worth weighing up your options and understanding the budget that you have to work with. So what are the benefits of having a heat pump that will encourage you to take on the cost of installing one?

  • Enhanced comfort in your home

Being more comfortable in your home is important, which is why heat pumps are great for those who are looking to invest in them. Why not have more comfort in your home by having a heat pump?

  • Cooling Functionality

Heat pumps provide cooling functionality, which is great for homes that seem to be getting warmer in recent years. It can certainly help during those warm months of the year when you feel like you’re melting in bed.

  • Lower heating costs

Who doesn’t want to pay less on their household bills? When you get a heat pump, one of the major benefits is the lower running costs. In effect, you’ll be saving more money over time as a result.

  • Helpful for the environment and future generations

We all want to do our bit in order to help those around us and those who have yet to grace the earth. With a heat pump, you’re doing every little bit you can to be kinder to the environment and to reduce your carbon footprint. In turn, that will hopefully provide future generations a happier and healthier place to live in.

Finally, what are the running costs that come with an air-source heat pump? You’ve bought and installed the heat pump but do the costs end there?

The amount it costs will of course depend on your home’s size. On average, you’ll find that a one-bedroom house will cost around £750 a year to run a heat pump. For two to three-bedroom houses, it’s £1,050 per year, and for four-plus bedrooms, it’s £1,450.

Compare this to average running costs on properties that use gas and oil as well as electricity, and you’ll find that you are saving money over time.

It’s well worth looking into a heat pump installation for your home, so explore the options and take advantage of the government grant while you can.

About the author 

Ben Hardman

Ben is a professional writer and the creator of sustainable living website TinyEco.com.
It's here where he helps people to reduce their environmental impact through simple, everyday choices. Away from the laptop, Ben loves spending time in the natural environment with his young family and Murphy the cocker spaniel.

Experience:
First Class BSc Biology degree (environmental and climate change focus)
Six years of working and writing in the environmental sector, including two years working at an international sustainability consultancy
Written for Ethical Consumer magazine, My Mother Tree, Unsustainable Magazine, Happy Eco News, Emission Index, PeakDistrict.org
Commented in The Independent, The Guardian, GreenMatch. Also featured on Radio 1's environmental special 'Minute of Me'

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