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Reviewed by Look Into Editorial Team · Fact-checked for accuracy
By LookInto Experts · Updated April 2026 · Independently researched

Heat pumps are rapidly becoming the UK’s preferred alternative to gas boilers. The government’s Boiler Upgrade Scheme offers £7,500 toward installation, making heat pumps increasingly affordable for homeowners.

This comprehensive guide covers everything you need to know: how they work, running costs, available grants, suitability for your home, and long-term savings.

What is a Heat Pump?

A heat pump is an electrical device that extracts heat from the air or ground and transfers it to your home’s heating system. Unlike gas boilers that burn fuel to generate heat, heat pumps move existing heat more efficiently.

For every unit of electricity consumed, a modern heat pump with a Coefficient of Performance (COP) of 3.0 delivers 3 units of heat. This makes them 3 times more efficient than electric resistance heating.

Types of Heat Pumps

Air Source Heat Pumps (ASHP)

Air source heat pumps extract heat from outside air, even at temperatures as low as -15°C. They’re the most common type in the UK:

  • Cost: £8,000-£12,000 installed (before £7,500 grant)
  • COP Rating: 2.5-3.5 (typically 3.0)
  • Installation: 1-2 days, less disruptive than ground source
  • Space Required: Small outdoor unit (1-1.5m x 1m), wall or ground mounted
  • Best for: Most UK properties, especially newer homes

Ground Source Heat Pumps (GSHP)

Ground source heat pumps extract heat from the ground, which maintains consistent temperature year-round:

  • Cost: £15,000-£25,000 installed (higher installation complexity)
  • COP Rating: 4.0-5.0 (significantly more efficient)
  • Installation: 2-3 weeks, requires digging (borehole or horizontal loops)
  • Space Required: Requires 1,500-3,000m² of land for horizontal loops, or deep borehole
  • Best for: Properties with large gardens, rural locations

How Heat Pumps Compare to Gas Boilers

FactorAir Source Heat PumpGas Boiler
Installation Cost£8,000-£12,000 (- £7,500 grant)£1,500-£3,500
Lifespan15-20 years10-15 years
Running Cost (4,000 kWh/yr)£295 @ 28p/kWh / COP 3.0£210 @ 7p/kWh (gas)
Annual Maintenance£150-£200£100-£150
Boiler Upgrade Scheme Grant£7,500 (2026)£0
Key Fact: Despite higher running costs per year initially, heat pumps break even in 8-12 years when you account for the £7,500 grant and expected increases in gas prices.

Pros and Cons of Heat Pumps

Advantages

  • £7,500 government grant available
  • Low running costs (COP 3.0+ = 2-3x more efficient)
  • No gas supply required
  • Environmentally friendly (especially with renewable electricity)
  • Long lifespan (15-20 years)
  • Low maintenance requirements
  • Can provide summer cooling (reversible systems)
  • Quieter than older boilers

Disadvantages

  • High upfront cost (£8,000-£18,000)
  • Works best with good insulation and large radiators
  • Slightly higher running costs than gas in some scenarios
  • Requires electricity supply upgrade (sometimes)
  • Outdoor unit noise (35-45dB typical)
  • May need to upgrade radiators or underfloor heating
  • Ground source requires significant garden space
  • Not ideal for poorly insulated properties

Check if You Qualify for the £7,500 Grant

Get free quotes from approved heat pump installers and find out your grant eligibility.

Get Free Heat Pump Quotes

FAQ: Heat Pumps

How long do heat pumps last? +
Modern air source heat pumps typically last 15-20 years with minimal degradation. Ground source systems can exceed 25 years. The inverter may need replacement after 10-15 years (£1,500-£3,000).
Will my home’s insulation affect heat pump performance? +
Yes significantly. Well-insulated homes (EPC D or better) require smaller, less expensive systems and benefit from lower running costs. Poorly insulated homes may need insulation upgrades (£5,000-£15,000) before heat pump installation to maintain comfort and COP ratings.
Can I keep my existing radiators? +
Most modern radiators work fine with heat pumps, but older small radiators may not deliver enough heat. You may need additional radiators (£100-£200 each) or to increase radiator sizes. Underfloor heating works excellently with heat pumps.
How much will it cost to run a heat pump? +
A 4-bedroom home using 4,000 kWh/year will cost approximately £295/year to run a heat pump (at 28p/kWh with COP 3.0). This is lower than many gas boiler scenarios when accounting for rising gas prices and the grant subsidy.
Will the outdoor unit be noisy? +
Modern air source heat pumps operate at 35-45dB (similar to an air conditioning unit), which is quieter than many refrigerators. Placement away from neighbour’s windows minimises impact. Some models offer ultra-quiet operation (30dB).