Heat Pump Cost Calculator

How much does a heat pump cost in the UK in 2026?

The UK heat pump market has matured substantially over the past three years. As of Q1 2026, the average air source heat pump installation for a typical three-bedroom UK home (90–110 m², standard insulation) costs £12,500 to £16,000 gross — installed, commissioned, and including the MCS certification needed to claim the BUS grant. After the £7,500 grant, most households pay £5,000 to £8,500 net.

For ground source heat pumps, expect to pay £20,000 to £30,000 for the same property — the difference being the cost of trenching or borehole drilling. With the same £7,500 grant applied, you net out at £12,500 to £22,500. Ground source is genuinely better long-term (SCOP 4.2 vs 3.0 for air source), but the higher upfront cost only makes sense for larger properties or homeowners planning to stay 15+ years.

Hybrid systems — where you keep your gas boiler and add a smaller heat pump that handles 70-80% of demand — typically cost £8,000–£12,000 installed. They don't qualify for the BUS grant, but they're cheaper upfront and require minimal radiator changes, making them popular for older homes with poor insulation.

What changed in 2026

• BUS grant extended to 2028 with funding boosted to £1.5 billion in the 2024 Spring Statement.
• Installer prices fell 8% on average in 2025 as supply chains normalised and more MCS-certified firms entered the market.
• Octopus Cosy and similar time-of-use tariffs cut typical running costs by 25–30% vs the standard cap.
• Permitted development rules relaxed in May 2025: most homes no longer need planning permission, and the 1-metre boundary distance was removed.

What the calculator price includes

• Heat pump outdoor unit (Mitsubishi, Daikin, Vaillant, Samsung, etc.)
• Indoor controls and buffer tank if needed
• New hot water cylinder (most heat pumps need one — combi boiler installs especially)
• Pipework from outdoor unit to indoor system
• MCS installer commissioning and grant paperwork
• Standard radiator upgrades (chosen scope above)

What it doesn't include

• DNO electrical upgrade — usually £0, but can be £500–£2,000 if your property has an old 60A supply
• Scaffolding if upper-floor pipework needs rerouting (£200–£600)
• Planning permission in Article 4 conservation areas (~£200–£500)
• Major insulation works — if your EPC has outstanding cavity-wall or loft recommendations, you'll need those done first to qualify for BUS

Should you wait for prices to drop further?

Probably not. Hardware prices have largely stabilised at current levels — the 8% drop in 2025 came from competition rather than manufacturing cost reductions. More importantly, the BUS grant is a fixed £7,500: as installer prices fall, the net cost to you doesn't necessarily fall in lockstep. If you're already past EPC-C with insulation sorted, the financial case is as strong now as it will be in 2027 or 2028.

One thing that does change in your favour over time: more MCS installers in your area means more competitive quotes. Always get 3 quotes from different MCS-certified firms and compare line-by-line — not just headline price. Use this calculator as your sanity check.