DATA-BACKED GUIDE · UPDATED JULY 2026
Air source heat pump cost before and after the grant
An air source heat pump is a bigger upfront outlay than a gas boiler, but a government grant takes a large chunk off the price. The final figure hinges on your home size, how well it is insulated, and whether radiators need upgrading. The real prices below come from actual prices, and remember the grant is applied on top of these.
The quick version
- The Boiler Upgrade Scheme grant of £7,500 cuts the cost of an air source heat pump in England and Wales.
- Heat pumps carry 0% VAT until 2027, alongside insulation, which lowers the headline price further.
- A well insulated home needs a smaller unit and fewer radiator changes, so it costs less to fit.
- Larger or poorly insulated homes may need bigger radiators or extra pipework, which adds to the bill.
What people actually paid
Real prices, in people's own words
- £2,200“Mine was £2.2k after BUS from Octopus, 8 rads.”
- £2,900“I paid £1300 (ASHP), £1000 for cylinder and another £600ish for stuff.”
- £3,000“I paid roughly £10500 for a 7kW aurotherm plus with 300l UVC, no buffer tank as one zone and full install. Minus the Home Energy Scotland Grant (£7500) I paid £3000”
- £6,500“My Octopus install cost around £11,500 and I paid £6,500 after the grant”
- £8,500“I got a full package from coolenergy, heatpump, buffer, 300l HWC, carel controller, glycol, the works. That was £6300 after vat reclaim.”
- £12,000“We where charged 12k minus the grant for an 11 KW Mitsubishi”
Genuine amounts posted publicly. We publish the price and the quote, never the person.
Why the price varies so much
Heat pump prices vary more than boilers because the system is designed around your specific home. The output needed depends on the size of the property and how much heat it loses, so a draughty older house costs more to heat and may need a bigger unit. Some homes need larger radiators or a hot water cylinder added, which increases both parts and labour. The £7,500 grant and the 0% VAT both bring the net figure down, but the gross price still moves with the installer, the equipment brand, and the complexity of the pipework. A national firm usually quotes above a local installer here too.
How to pay less
- Use an MCS certified installer so you qualify for the £7,500 Boiler Upgrade Scheme grant.
- Insulate the loft and walls first, as a warmer home needs a smaller and cheaper air source heat pump.
- Get several quotes, since designs and prices vary widely between installers for the same house.
- Confirm the 0% VAT is reflected in your quote while the relief lasts until 2027.
Common questions
How much does the grant take off a heat pump?
The Boiler Upgrade Scheme grant is £7,500 in England and Wales, and it is taken off the price by your MCS certified installer, so you pay the reduced amount. The real prices below reflect what jobs cost, with the grant applied on top to lower what you actually hand over.
Do heat pumps have VAT on them?
Energy-saving measures like an air source heat pump and insulation carry 0% VAT until 2027. That means no VAT is added to the installation during that window, which is a useful saving on top of the grant. Make sure your quote reflects the zero rate.
Will a heat pump work in an old house?
Yes, but the home usually needs decent insulation to run efficiently and keep bills down. Older properties may need larger radiators and better loft or wall insulation first. A good installer will assess heat loss before designing the system rather than fitting a unit blind.