Air Source Heating Cost: How Much Does It Really Cost?

Air source heat pumps (ASHP) have become a popular choice in the UK, especially as people look for eco-friendly ways to heat their homes. But while they sound like a good idea, the big question remains: how much do they actually cost?

In Brief

An air source heat pump typically costs £7,000 to £13,000 fully installed in the UK, with running costs of around £500 to £1,400 a year depending on home size, insulation and location. Systems are commonly over 300% efficient, meaning roughly three units of heat are produced for every unit of electricity used.

We’ll look at what you can expect to pay for installation, the running costs, and what factors affect the final price. You’ll also get an idea of the potential savings and benefits.

1. What Exactly Is Air Source Heating?

Before diving into the numbers, let’s quickly cover what an air source heat pump is. Essentially, it’s a system that absorbs heat from the air outside (even when it’s cold!) and uses it to heat your home and hot water.

There are two main types: air-to-water systems, which provide hot water for radiators or underfloor heating, and air-to-air systems, which deliver warm air through fans. It’s a neat, greener alternative to gas boilers and has been gaining popularity in the UK as more people look to reduce their carbon footprint.

2. The Upfront Costs: Installation and Equipment

Now, the initial price tag is one of the biggest things people want to know. For an average air source heat pump system, you can expect to pay somewhere between £7,000 and £13,000. The price depends on the size of your home and the complexity of the system.

A typical installation will include the cost of the heat pump unit itself (usually around £4,000 to £8,000), labour, and any adjustments needed to your existing heating system, like upgrading radiators or adding underfloor heating. Some homes may require extra work to get the most out of the system, which can bump the cost up even more.

3. Running Costs and How Efficient It Is

One of the main selling points of air source heating is its efficiency. Air source heat pumps are highly efficient, with some models offering an efficiency rate of over 300%. This means that for every unit of electricity used, you can get three units of heat in return – great for lowering those energy bills over time.

The exact running cost will depend on your home’s size, insulation, and how cold it gets where you live. On average, running an air source heat pump could cost you around £500 to £1,400 per year, depending on energy rates and usage. In many cases, it works out cheaper than running a traditional gas or oil boiler.

4. What Affects the Overall Cost?

A few factors will affect how much you end up paying, both upfront and in the long run.

• Your Home’s Size: Larger homes need bigger, more powerful systems, which naturally cost more.
• Insulation: Homes with poor insulation will need to work the system harder, leading to higher energy use and costs. Good insulation can make a huge difference.
• Location: If you live in colder parts of the UK, your system may have to work harder to keep your home warm, which can increase running costs.
• Government Incentives: The Boiler Upgrade Scheme (BUS) currently offers a £7,500 grant towards the cost of an air source heat pump installation, deducted directly from your installer’s invoice. If your home is off the gas grid and currently heated by oil or LPG, you may qualify for an increased grant of £9,000 until March 2027. Find out if you qualify for the £9,000 Boiler Upgrade Scheme grant.

5. Is It Worth the Investment?

Now, is it worth shelling out that initial cost? If you’re looking to reduce your environmental impact and cut down on long-term energy bills, an air source heat pump could be a great investment. While the upfront costs can be steep, the long-term savings and available grant support make it a more affordable option over time.

Plus, switching to a greener heating system can reduce your home’s carbon footprint, something that’s becoming increasingly important as the UK moves towards more sustainable living.

Looking for an Air Source Heat Pump Installation quote?

If you’re interested in having an air source heat pump installed at your property, get in touch with our team and we’d be delighted to arrange a date and time to carry out a site visit. All our quotations are free and without obligation so head over to the contact page or give us a call on: 01747 858 852

Written by Ben Smith

Director, Ace Energy

Ben leads the team at Ace Energy, with two decades of experience in plumbing, heating and renewable energy installations across Dorset, Wiltshire and Somerset.