A Guide to Heat Pump Prices in 2023

Written-by

Janet Richardson

Reviewed-by

Richard Burdett-Gardiner

Updated on

May 22, 2023

A Guide to Heat Pump Prices in 2023

Heat pumps are becoming increasingly popular as they can provide an excellent source of energy efficient heat and hot water for the home or office. If you are looking for heating or cooling devices heat pumps may well be the energy solution you need as they are not only a green technology but versatile and cost effective. There are many factors to consider when purchasing a heat pump. These variables mean that installation costs can vary a lot. To get an exact price you will need a full quote. We can, however, look at the prices you can expect to pay. We can also look at what you are likely to save and make by being part of the RHI scheme (closed to new applicants on 31st March 2022 and replaced with the Boiler Upgrade Scheme (BUS)).

Heat pump prices

The installation cost of heat pumps is high. The overall cost will depend on the size and the area needed for the installation. Ground source heat pumps are the most expensive of the heat pump systems. GSHPs cost anything between £18,000 and £30,000. This is due to the installation of the pipes under the ground. On an existing property the ground will need digging. This means it will cost more for an existing property than a newly built one. If used and installed correctly, they can save you money on your heating bills. Air source heat pumps come in at around half that, between £8000 and £14,000. Again, this depends on size and area. There are different types to consider such as air to air heat pumps and air to water heat pumps. When thinking about buying a heat pump, it is important to take into account how much you will save on your energy bills.

Let’s look at the potential savings with an air source heat pump

If you currently have oil fired heating, the Energy Saving Trust says you could save approximately £435 per year. If your home has electric heating, the saving is much higher at up to £1130 per year. The savings you can make are higher still if you have an LPG boiler and could be as much as £1410 per year. Finally, if your home has gas heating, you could save up to £450 per year by having an air source heat pump installed.

When thinking about the installation cost of either an air source heat pump or ground source heat pump, you should also consider any home improvement cost there might be. This will be important to ensure you get the most out of your heat pump. Some examples are:

1. Your garden may need work if you are having a ground source heat pump installed.

2. You may need insulation installed to improve efficiency. Insulation is one of the most important factors when installing a heat pump.

A properly insulated home will save much more money on its energy bills than one that is not. Another thing you may want to look at is underfloor heating. Heat pumps are at their most efficient when operating at lower temperatures, making this technology a perfect partner for underfloor heating (UFH), which operates at a much lower flow temperature than radiators. 

You may also need to change your boiler if you are planning to heat your water this way. A conventional boiler is not as efficient with the lower heat temperature. The easiest solution is to change your hot water cylinder to a heat pump compatible one.

All these changes need to be considered as potential costs before you decide on installing a heat pump. Modern gas boilers last on average 8-14 years and a heat pump should last for 12-18 years. Heat pumps do require some power to work, so considering generating your own electricity may be another option - think about solar or wind? Choosing an installer is important as a properly installed heat pump will save you money and will be more efficient, meaning you recoup your initial investment quicker. The government also offers an incentive for this kind of heating alternative. The scheme is called the RHI (or the domestic and non-domestic heat incentive). You can receive money from this scheme for 7 years for renewable heating costs.

Heat pumps, biomass and solar water heating are entitled to payments within the scheme.  To receive the payments, you will need to meet the MCS standards. Your payments will depend on the type and size of system you have.  The Renewable Heat Incentive scheme has now closed to new applicants. The RHI has been replaced by the Boiler Upgrade Scheme. Visit Ofgem for further information. Another important thing to consider is the COP, or coefficient of performance. This value can tell you how efficient your heat pump is. It works by measuring its power input compared to power output.

The more efficient the pump is the more money you save compared to traditional heating methods such as a gas boiler. It is estimated you can save up to 52% when used for space heating. The average heat pump has a figure of 4.

You will need a full survey and quote to get an exact price for your property. This is often done for free by a reputable installer. It is always wise to get more than one quote. It Is important to choose the right system for your home.  Underfloor heating is a good choice as it works well with heat pumps. It has a larger surface area to radiate heat from and as heat pumps operate at a lower temperature, the larger surface area is beneficial. Overall, you will need to ensure you can cover the initial outlay and can expect to pay up to £15,000.

There is no quick solution or funding for the initial cost, but there are incentives. Over the 7 years for a ground source heat pump, you will receive £29,442 in RHI payments and for an ASHP you can receive £9,498 (closed to new applicants on 31st of March 2022 and replaced with the Boiler Upgrade Scheme (BUS)).  On top of any subsidies, you will have a 26% reduction on energy bills. Compared to other renewable heating options, the figures look attractive. RHI payments are more than double that of biomass and solar thermal (closed to new applicants on 31st of March 2022). We can help you on your journey to finding the right installer.

Our trusted installers can give you quotes and advice on which heat pump is best for you and an idea of how much this will cost. For a full introduction and more information on heat pumps click here. Fill in your details to compare prices from local companies - it’s both fast and free!