Heat Pumps — Low-Carbon Heating for Your Home
An air source heat pump takes heat from the outside air and uses electricity to raise it to a useful temperature for your radiators and hot water.
Heat pumps are much more efficient than gas or oil boilers — the Energy Saving Trust says more than three times as efficient. But electricity costs several times more per unit than gas, so whether a heat pump lowers your bills depends on what you are replacing, how efficient your current system is, and whether you move to a heat pump electricity tariff.
- Boiler Upgrade Scheme grant (England and Wales)
- £7,500
- Typical installed cost before the grant
- ~£12,000
- More efficient than a gas or oil boiler
- 3×+
- Extra grant until March 2027 for oil or LPG homes off mains gas
- +£1,500
What Is Heat Pumps?
An air source heat pump is an outdoor unit that works like a fridge in reverse: a refrigerant absorbs heat from the outside air and a compressor raises its temperature to heat your home and hot water. Heat pumps work best at lower flow temperatures, so some radiators may need to be larger, and a well-insulated home helps them run efficiently.
How It Works
Heat Loss Survey
An MCS-certified installer works out how much heat each room needs and checks your insulation, radiators and where the outdoor unit can go.
System Design
The heat pump is sized for your home, with any radiator upgrades and a hot water cylinder if needed.
Installation
The outdoor unit is fitted and connected to your heating and hot water. In England and Wales the installer applies for the Boiler Upgrade Scheme grant.
Set-Up and Handover
The system is commissioned and you are shown how to run it efficiently. Ask about heat pump tariffs from your electricity supplier.
Is It Right for My Home?
Air source heat pumps suit most houses with space outside for the unit. Good insulation helps them run efficiently. The Boiler Upgrade Scheme is for property owners in England and Wales replacing fossil fuel heating (gas, oil, LPG or electric); most new builds and social housing are not eligible, and the installer must fit the heat pump within 120 days of applying. Scotland has separate grants and interest-free loans through Home Energy Scotland.
Key Benefits
£7,500 Grant
The Boiler Upgrade Scheme gives £7,500 towards an air or ground source heat pump in England and Wales.
Highly Efficient
The Energy Saving Trust says heat pumps are more than three times as efficient as gas or oil boilers.
Bigger Savings Off Oil, LPG or Electric
The Energy Saving Trust's estimates show the largest savings when replacing LPG or electric heating.
Heat Pump Tariffs
Switching to a heat pump time-of-use tariff can cut running costs significantly, according to the Energy Saving Trust.
Low-Carbon Heating
Heat pumps run on electricity, so their emissions fall as the grid uses more renewable power.
Works With Solar
Solar panels can supply some of the electricity a heat pump uses.
Ask for a Free Heat Pumps Quote
Typical Costs and Savings
Typical figures to help you compare, not a quote for your home. Your costs and savings depend on the property, how you heat it and how you use energy.
| Example | Typical Cost | Typical Saving a Year |
|---|---|---|
| Replacing a gas boiler | ~£12,000 (£4,500 after the £7,500 grant) | −£110 to £220 on a standard tariff; £204–£530 on a heat pump tariff with gas disconnected |
| Replacing an oil boiler | ~£12,000 (£4,500 after the £7,500 grant) | −£90 to £260 on a standard tariff; £110–£460 on a heat pump tariff |
| Replacing an LPG boiler | ~£12,000 (£4,500 after the £7,500 grant) | £290–£780 on a standard tariff; £560–£1,050 on a heat pump tariff |
| Replacing electric heating | ~£12,000 (£4,500 after the £7,500 grant) | £800–£1,200 on a standard tariff; £1,000–£1,400 on a heat pump tariff |
Energy Saving Trust estimates for a standard air source heat pump in a three-bedroom semi-detached home in Great Britain, including radiator upgrades as needed, based on fuel prices as of July 2026. Each range runs from replacing the most efficient to the least efficient existing system; a negative figure means higher running costs. Oil and LPG homes off mains gas can get an extra £1,500 grant until March 2027. Source: Energy Saving Trust — air source heat pumps. Last reviewed September 2026.
Help With the Cost
Funding depends on where you live, your income and your home, and schemes change. We are not a government body — check the official scheme before relying on it.
Boiler Upgrade Scheme
£7,500 towards an air or ground source heat pump for property owners in England and Wales, applied for by an MCS-certified installer.
Read more on our grants guide →Scotland and Wales
Home Energy Scotland offers grants and interest-free loans for heat pumps; in Wales, Nest can fund improvements for eligible lower-income households.
Read more on our grants guide →Frequently Asked Questions
Your next step
Thinking about Heat Pumps?
It is free to ask and there is no obligation.