An air-source heat pump typically costs about £10,000 more than a gas boiler, according to the National Infrastructure Commission, external (NIC). Installation costs can vary greatly depending on the changes needed to fit the pump into a property.
To encourage people to make the switch, the Boiler Upgrade Scheme provides a grant of £7,500 to help with the extra costs in England and Wales, external.
With the grant, some energy companies offer heat pumps for as little as £500, but the UK’s spending watchdog warned in 2024 that costs were too high for many.
The grant can be used for existing homes and non-domestic buildings in England and Wales. The property must have an eligible Energy Performance Certificate (EPC), external issued in the last 10 years.
Changes to the rules mean homes are no longer required to have existing loft or cavity wall insulation, which could save around £2,500 in upfront costs, but a well-insulated home can help the heat pump to perform more efficiently.
The scheme is not available if you live in social housing or a new-build property. Tenants in private rented accommodation are also eligible but the landlord has to apply.
Scotland, external and Northern Ireland, external have separate schemes to help make homes more efficient.