What costs could come with installing a heat pump?
Installing a heat pump in your home will bring you reliable heating and hot water, efficiencies when it comes to energy usage, and you'll be less reliant on gas - all the while turning your home into a more environmentally friendly haven. It’s win-win in our eyes!
But, as with all big decisions about your home, what you decide to do will often come down to cost.
We understand that. Which is why we’ve put together this handy guide outlining the type of costs you may expect when installing a heat pump.
What could affect the price of a heat pump installation?
There are a number of factors that can influence the cost of a heat pump:
- Size of the home: Larger homes typically need larger (or multiple) heat pump units. But we’re talking about very large houses here. In fact, most semi/detached houses in the UK will only need one heat pump
- Home insulation / site preparation: Heat pumps operate best at lower temperatures. This makes them more efficient because they don’t need to work so hard. To help the heat pump operate optimally, your home should ideally be well insulated - it’s easier to maintain internal temperatures this way. As a minimum, we’d recommend that walls should be insulated where it is relatively easy to do so – through cavity wall insulation, for example. Lofts should also be insulated. This can increase the cost - but it does mean that not only will your heat pump will be more efficient over the longer term, but you may need a system with a smaller output in the first place, reducing your upfront costs
- Brand and model: While we don’t necessarily recommend choosing a model of heat pump based purely on price, we know it will be a key factor in your decision-making. Higher-end heat pump models will of course cost more, but that’s the same with most technology. Don’t worry, our installers will help you identify the best unit for your home and your budget – and they only work with reputable manufacturers
- Installation complexity: The complexity of the installation can affect the cost. Some houses need more work than others (for example to radiators and pipework) - but that’s where we come in. We’ll conduct assessments of your home and provide you with a report to show you what you may need to do to be heat pump ready. You can kick that off today if you like, by completing our Heat Pump Readiness test. Go on, it only takes 5 minutes! https://platform.thermly.co.uk/heatpump-readiness
- Labour costs: Rates charged by installers can vary, because they all have different cost bases. However, we only work with trusted installers, who charge a fair price. We’re also transparent and committed to offering you choice, so we’ll provide you with an option of three installers to choose from and you can compare the prices yourself
Is there anything homeowners can do to reduce heat pump installation costs?
Short answer, yes.
As above, if you can insulate your home cost effectively, doing simple measures like loft and cavity wall insulation, and getting broken windows repaired, then you should definitely do so. That could reduce the size, and therefore upfront cost of the system.
Take advantage of the grant that’s currently available. In 2024 the Government extended the Boiler Upgrade Scheme, which gives every eligible homeowner up to £7,500 towards the cost of installation. This can halve the cost of installation, making it much lighter on the pocket. Head to https://www.find-government-grants.service.gov.uk/grants/boiler-upgrade-scheme-1 to find out if you’re eligible. To read more about how the grant works, here’s our handy guide: https://www.thermly.co.uk/articles/how-to-apply-for-grant
Incidentally, if you do go down the installation route with us, our installers will apply for the grant for you, taking away the hassle of all that paperwork!
Need a helping hand?
Sometimes we all need a helping financial hand. That help is out there, including some very good organisations which provide home improvement loans to support upgrades, particularly environmental/sustainable ones, to your property. Whilst we have to point out that we can’t make any financial recommendations, our team can provide you with more information.
And finally…
Just remember, while a heat pump may be more to install than a gas boiler, once it’s installed your home heating system will be so much more efficient.
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