Heat pumps are rapidly emerging as a popular heating solution in the UK, though many homeowners still have questions about their efficiency, costs, and overall benefits. As the nation transitions to cleaner energy alternatives, supported by government grants like ECO4 and GBIS among others, heat pumps are becoming a crucial technology in reducing household carbon emissions and energy bills.
According to the Microgeneration Certification Scheme (MCS), nearly 60,000 certified heat pump installations were completed in 2024—an impressive 43% increase from the previous year. This surge brings the total number of certified installations in homes and small businesses to over 275,000.
Heat pumps saw a significant and record-breaking rise in 2024, with almost 60,000 certified installations – a 43% increase on 2023.
Government Incentives and Future Targets
The UK government has set an ambitious goal: 600,000 heat pump installations per year by 2028 as part of its broader strategy to cut carbon emissions from domestic heating. To encourage adoption, the Boiler Upgrade Scheme offers grants of up to £7,500 to homeowners in England and Wales, reducing the cost of installing a heat pump to a level comparable to a gas boiler.
Energy Minister Graham Stuart stated in a recent debate:
Heat pumps and heat networks are the two principal technologies that we believe will achieve that. (…) heat networks (…) energy can be drawn from large, efficient heat pumps or even from heat that would otherwise be dumped into the air, such as from data centres and waste incinerators.
Despite these efforts, adoption remains slower than expected due to installation costs and home suitability concerns. Industry experts suggest that further financial incentives and public education campaigns are needed to accelerate adoption.
How Much Do Heat Pumps Cost to Install?
Installation costs vary depending on property size, type of heat pump, and any necessary modifications. On average:
- Air source heat pumps: £7,000 – £14,000
- Ground source heat pumps: £15,000 – £35,000
The Boiler Upgrade Scheme helps offset costs, reducing air-source heat pump prices to as low as £5,000 in some cases. However, additional expenses—such as improving insulation or upgrading radiators—can affect the final price.
Can Heat Pumps Reduce Energy Bills?
One of the most common questions homeowners ask is whether heat pumps truly save money. According to Octopus Energy, a well-optimized air-source heat pump can reduce heating bills by £213 to £500 per year compared to gas boilers. Savings depend on:
- Electricity tariffs: Heat pumps are most cost-effective when paired with time-of-use tariffs.
- Home insulation: Well-insulated homes require less energy, improving heat pump efficiency.
- Gas meter removal: Households that eliminate their gas connection avoid standing charges, further increasing savings.
Do Heat Pumps Work in Cold Weather?
A common myth is that heat pumps fail in freezing temperatures, but studies show they remain twice as efficient as gas boilers even in sub-zero conditions. Modern heat pumps function effectively at temperatures as low as -25°C, making them suitable for UK winters.
To ensure minimal noise from heat pumps, homeowners should:
✔ Choose a Quiet Mark-certified model
✔ Install the unit away from bedroom windows
✔ Schedule regular maintenance checks
Heat pumps offer a sustainable and cost-effective alternative to gas boilers, with lower running costs, reduced carbon emissions, and long-term financial savings. While upfront costs remain a barrier, government grants and energy-efficient home improvements can make the switch worthwhile.
If you believe an air source heat pump could be the right solution for your home, why not find out if you qualify for a free installation under the ECO4 grant? The Energy Company Obligation (ECO4) scheme helps eligible households upgrade to energy-efficient heating systems at no cost. Simply fill in our application, and we’ll assess whether you qualify for an air source heat pump grant and other home heating upgrades. Don’t miss out on the opportunity to improve your home’s efficiency and cut your energy bills—apply today!
