How Much Is a Heat Pump

Why heat pump prices vary

A heat pump is a system, not a single product. The unit is one part, and the work around it is often just as important. Your home's size, insulation and existing heating decide how much work you need. That is why two neighbours can receive very different quotes.

The type of heat pump also matters. Air-to-water, air-to-air and ground source systems each involve different equipment and installation work. A ground source system needs pipes laid in the ground, which adds groundwork. A heat-loss survey shows which type and size suits your home.

The parts that make up a quote

Ask every installer to price each part of the job separately. An itemised quote lets you compare firms fairly. It also shows where one quote differs from another. The list below covers the parts most quotes include.

• The heat pump unit, sized from a heat-loss survey.
• Radiator or pipework upgrades for lower flow temperatures.
• A hot water cylinder suited to a heat pump.
• Insulation work that reduces heat loss.
• Electrical work to supply the system safely.
• Siting the outdoor unit, including space and pipe runs.
• Design, commissioning and paperwork by an MCS-certified installer.

Running costs depend on your home, your tariff and how you use your heating. Ask your installer to explain the assumptions behind any running cost estimate they give you.

How grants and loans lower what you pay

The Boiler Upgrade Scheme grant takes £7,500 off an air-to-water or ground source heat pump in England and Wales. The value is £9,000 when you replace oil or LPG in an off-gas-grid home. An air-to-air heat pump receives £2,500. The scheme does not cover Scotland or Northern Ireland, so check official advice from Home Energy Scotland or the Energy Saving Trust.

The Warm Homes Loan Scheme sets maximum loans of £20,000 for air-to-water, £10,000 for air-to-air and £35,000 for ground source. You can combine the loan with the grant, which lowers the amount you borrow. Three details are not yet confirmed. The Government has not published the eligibility rules. It has not confirmed how or when you apply. Each lender has not yet published its rates.

1. Book a heat-loss survey with two or three MCS-certified installers.
2. Ask for written, itemised quotes.
3. Check that each quote shows the grant deducted, where you qualify.
4. Work out the balance you need to fund.
5. Compare savings, loans and installer finance on total cost.