Thinking about lowering your energy bills or cutting your carbon footprint? A heat pump could be the upgrade your home needs. It’s an energy-efficient alternative to gas boilers — and one of the best ways to prepare your home for the future.
In this guide, we break down the real cost of installing a heat pump. You’ll learn what affects the price, what kind of support is available through government grants, and how to reduce running costs.
What’s the Average Cost of a Heat Pump?
The cost of installing an air source heat pump typically falls between £7,000 and £13,000 before any financial support is applied. However, with the Boiler Upgrade Scheme (BUS) offering a £7,500 grant, many homeowners end up paying far less out of pocket.
Typical costs after the grant:
| Home Type | Average Cost After Grant |
| 2-bedroom bungalow | £4,850 |
| 3-bedroom semi-detached | £6,175 |
| 4-bedroom detached | £6,400 |
These figures include the heat pump unit and installation costs based on a straightforward installation. Some homes may require additional upgrades, which we’ll explore next.
What Affects the Final Price?
Every home is different, which means the final cost of installing a heat pump can vary depending on a few key factors:
1. Home Size and Heat Demand
Larger homes require more powerful systems to ensure even and efficient heating. A heat loss survey helps determine the correct-sized system for your space.
2. Insulation Quality
Well-insulated homes need less energy to stay warm, meaning a smaller, more affordable system can be used. If your loft or cavity walls aren’t insulated, we might recommend upgrades first. You may qualify for additional funding through energy-saving schemes to help cover this cost.
3. Radiator and Pipework Upgrades
Heat pumps operate at lower temperatures than traditional boilers. That means you may need to upgrade to larger radiators or install underfloor heating to maintain comfort. In some cases, we may also need to replace older, narrow pipes to improve flow.
4. Installation Complexity
If your property has limited outdoor space, older pipework, or needs a complete system upgrade, installation can take longer and cost more. These factors can affect labour time and materials. Pyramid Eco provides a detailed quote after a free home survey, so you’ll know exactly what to expect before any work begins.
What’s Included in a Pyramid Eco Installation?
When you choose Pyramid Eco, you’re not just getting a heat pump. You’re getting a fully supported move toward low-carbon, energy-efficient heating for your home.
Here’s what a typical installation includes:
- A high-quality heat pump, selected and sized for your home’s energy needs
- A compatible hot water cylinder for efficient hot water delivery
- Radiator upgrades, where needed, to maintain comfort with lower flow temperatures
- All necessary electrical and plumbing work
- Full grant application support, including managing the Boiler Upgrade Scheme paperwork
- A 24-month retrofit guarantee for added peace of mind
- Ongoing aftercare and technical support
- Certified installation by professionals accredited with PAS 2030, MCS, and Gas Safe Register
We believe in clear communication and no surprises. We’ll explain everything if extra work is needed and help you choose the best path forward before starting any additional work.
How Much Does It Cost to Run a Heat Pump?
One of the biggest advantages of air-source heat pumps is their high efficiency. Although electricity costs more per unit than gas, a well-installed heat pump uses three to four times less energy to produce the same amount of heat. This efficiency is reflected in your energy bills over time.
Estimated annual running costs (based on average usage):
| Home Size | Estimated Annual Cost |
| 1–2 bedroom | £850–£950 |
| 3–4 bedroom | £1,000–£1,300 |
| 5+ bedroom | £1,400–£1,700 |
These figures are averages and will depend on factors such as:
- Insulation levels: Well-insulated homes retain heat better, reducing the workload on your system.
- Electricity tariff: Choosing the right energy tariff can make a noticeable difference in your monthly bills.
- Desired indoor temperature: Warmer settings require more energy output from your heat pump.
Want to save even more?
You can boost the savings from your heat pump with a few smart upgrades and decisions:
- Switch to a heat pump-specific energy tariff: Some suppliers offer lower-cost electricity rates during off-peak hours designed especially for heat pump users.
- Pair with solar panels: Generate your own electricity during the day and reduce reliance on the grid.
- Remove your gas meter: If you no longer use gas in your home, disconnecting the meter can eliminate the standing charge — saving around £100 per year.
During your consultation, we’ll walk you through these energy-saving options and tailor recommendations based on your home’s needs and your energy goals.
Heat Pump Maintenance Costs: What to Expect
Air source heat pumps are low-maintenance compared to gas boilers, but like any heating system, they benefit from regular servicing to stay efficient.
Annual maintenance checklist:
Professional service: £150–£300
- Visual checks for debris and airflow blockages
- Filter cleaning or replacement
- System performance check
Pyramid Eco provides guidance on simple upkeep you can do yourself, and we recommend an annual service to keep your warranty valid and your system running at its best.
Government Support: The Boiler Upgrade Scheme
The Boiler Upgrade Scheme (BUS) offers homeowners in England and Wales a £7,500 grant toward the cost of installing an air source heat pump.
Key details:
- Available to owner-occupied homes and private landlords
- Property must have a valid EPC (Energy Performance Certificate)
- The application must be made through an MCS-certified installer, like Pyramid Eco
- Available until March 2028
We’ll handle the application process for you, making it easy to claim your grant with minimal paperwork.
Is a Heat Pump Worth It?
Absolutely — and not just for your wallet.
Installing a heat pump means:
- Long-term savings on energy bills
- Lower carbon emissions (up to 70% less than a gas boiler)
- A quieter, more future-proof heating system
- Reduced reliance on gas, which has prices that are becoming increasingly volatile
- Increased property appeal for eco-conscious buyers
Many homeowners report saving £200–£400 per year on energy bills compared to older gas systems. Over 15–20 years, those savings really add up.
Book Your Free Heat Pump Survey Today
At Pyramid Eco, we know every home is different. That’s why we offer free, no-obligation surveys to help homeowners understand their options, access government grants, and receive a clear, personalised quote.
With certified installers, full grant support, and a 24-month retrofit guarantee, we make switching to low-carbon heating simple and stress-free.
Ready to lower your bills and future-proof your home? Book a free heat pump survey with Pyramid Eco today.
Frequently Asked Questions
In most cases, you don’t. Air source heat pumps are classed as permitted development in England and Wales, meaning you can install one without formal planning permission — as long as specific conditions are met.
As of 29 May 2025, the rules have become even more homeowner-friendly. The government has removed the requirement for air source heat pumps to be at least one metre from your property boundary and increased the maximum allowable unit size under permitted development from 0.6 m³ to 1.5 m³. This change is especially beneficial for people living in terraced houses, flats, or homes with small outdoor spaces.
However, different rules may apply if you live in a listed building or conservation area or are installing multiple units in a non-detached property. That’s why we’ll assess your property during your free home survey and let you know if any permissions are needed.
Possibly. Air source heat pumps operate at lower flow temperatures than traditional boilers, so to keep your home warm and energy-efficient, larger or more efficient radiators may be needed. Many homes are already suitable, but we’ll evaluate your current system during your survey and recommend any necessary upgrades in your tailored plan. It’s all part of ensuring your system performs at its best.
Most installations are completed in 2 to 4 days, depending on the complexity of your current heating setup and any additional upgrades like radiators or cylinders. Our team handles everything — from removing your old boiler to installing the heat pump and testing the system — with care to minimise disruption.
Absolutely. Today’s heat pumps are designed to function reliably in sub-zero temperatures, with many models operating efficiently down to –20°C. Combined with good insulation and proper sizing, your home will stay warm even in the depths of winter — all while using far less energy than a traditional boiler.
