Grant rules checked against Ofgem on 15 October 2026
How much does an air source heat pump cost after the £7,500 grant?
Published and last updated 15 October 2026
Your contribution is your installer's quote minus the grant: £7,500 for most homes, £9,000 for eligible off-gas homes heated by oil or LPG, or £2,500 for an air-to-air system. Installation is VAT-free until 31 March 2027, so a compliant quote should already show 0% VAT.
Heat pump cost calculator
- Quote
- £12,000
- Grant
- −£7,500
- You pay
- £4,500
VAT on heat pump installation is 0% until 31 March 2027, so check your quote doesn't add VAT.
Check eligibility and get quotesWhat does a typical installation cost before the grant?
Published UK cost guides commonly put a full air-to-water installation at roughly £8,000 to £15,000 before the grant, depending on the size of the heat pump and the work your home needs.
The only figure that matters is your own quote, which is why we recommend comparing at least three.
What's included in a heat pump quote?
A full quote should cover the outdoor unit, a hot water cylinder, any radiator upgrades, pipework, controls, electrical work, commissioning and the MCS certificate.
Your quote should include
- ✓Test 1: Outdoor unit
- ✓Test 2: Hot water cylinder
- ✓Test 3: Radiator upgrades
- ✓Test 4: Pipework
- ✓Test 5: Controls
- ✓Test 6: Electrical work
- ✓Test 7: Commissioning
- ✓Test 8: MCS certificate
Why do quotes vary so much?
Quotes vary mainly with your home's heat loss, which sets the size of heat pump and radiators you need.
- Heat pump size (kW)
- Number of radiators to upsize
- Whether you need a new hot water cylinder and space for it
- Distance from the outdoor unit to the cylinder
- Electrical upgrades
- Access and ground works for the unit's base
Are there ongoing costs?
Yes: electricity to run it and an annual service, which most manufacturers require to keep the warranty valid. Running costs depend on your home's heat loss, your electricity tariff and how efficiently the system is designed. Many energy suppliers offer heat pump tariffs that are worth comparing.
Can you spread the cost of your contribution?
Some installers offer finance on the balance after the grant; compare the APR and total repayable before you sign.
How do you make sure the grant is applied properly?
Check the written quote shows the full price, the grant deducted and the balance you'll pay. See how the application works and how to choose an installer.
Frequently asked questions
Is the £7,500 taken off before or after VAT?
Heat pump installation is currently zero-rated for VAT, so there's no VAT to add; the grant comes off the quote.
Can the grant cover the whole cost?
Occasionally a quote is close to the grant, but most homes pay a balance.
Are cheap quotes a red flag?
Not always, but make sure a heat loss survey was done and everything on the checklist is included.
Do I pay a deposit?
Ask the installer; a consumer code member must follow rules on deposits.