Air Source Heat Pump Costs UK 2025 — Full Breakdown | Halo Heating

The True Cost of an Air Source Heat Pump

Air source heat pumps (ASHPs) represent a significant upfront investment, but government grants and lower running costs make the total cost of ownership more competitive than many people expect. Here's a transparent breakdown.

Upfront Installation Costs

| Component | Typical Cost |

|-----------|-------------|

| Heat pump unit (6–16 kW) | £6,000–£12,000 |

| Installation labour | £2,000–£4,000 |

| Hot water cylinder (if not present) | £800–£1,500 |

| Radiator upgrades (if needed) | £1,500–£4,000 |

| Electrical upgrades (if needed) | £500–£1,500 |

| **Total before grant** | **£10,000–£23,000** |

| **Boiler Upgrade Scheme grant** | **-£7,500** |

| **Typical net cost** | **£7,000–£15,000** |

Costs vary considerably based on property size, existing system, and required works.

The Boiler Upgrade Scheme (BUS) Grant

The UK government currently offers a £7,500 grant for air source heat pumps through the Boiler Upgrade Scheme. This grant is paid directly to the MCS-certified installer and deducted from your invoice — you never see the money, but you benefit from the reduced cost immediately.

Halo Heating is MCS certified and can apply for the grant on your behalf.

Running Costs

ASHPs run on electricity, not gas. Whether they're cheaper to run depends on:

**Your current heating fuel** — electricity is currently around 3–4x the per-kWh price of gas

**Your heat pump's COP (Coefficient of Performance)** — a COP of 3 means you get 3 units of heat for every 1 unit of electricity

**How well your home is insulated** — a poorly insulated home makes any heating system expensive

Typical running cost comparison (well-insulated 3-bed semi):

Gas boiler: ~£1,200–£1,500/year

ASHP: ~£900–£1,300/year (at typical 2025 tariffs)

The gap narrows as electricity tariffs fall and gas prices fluctuate.

Maintenance Costs

ASHPs have fewer moving parts than gas boilers and generally require less maintenance. An annual service costs around £100–£200 — similar to a boiler service.

The Long-Term View

ASHPs have a lifespan of 20–25 years versus 10–15 years for a gas boiler. When amortised over the full lifespan, and factoring in the government grant, the total cost of ownership becomes very competitive.

For an accurate quotation and heat loss survey for your property, call Halo Heating on 01483 676108.

Air Source Heat Pump Costs UK 2025 — Full Breakdown