What are heat pumps and how much do they cost?

Heat pumps run on electricity instead of gas, and are more efficient than traditional boilers.

They warm buildings by absorbing and amplifying heat from the air, ground, or water.

The system consists of a box measuring about 1m x 1m x 0.4m (or 3ft x 3ft x 1.3ft) which stands outside the property, as well as a heat pump unit and hot water cylinder inside the property.

The indoor unit is about the size of a gas boiler, while the size of the cylinder depends on the property.

Ground source heat pumps are more efficient than air-source models.

However, they are typically more expensive and less commonly used, as they require either a deep bore hole or a large horizontal system dug into the ground.

How much do heat pumps cost and what funding is available?

Households typically spend an additional £5,000 on top of the grant, which the UK's spending watchdog warned is too high for many .

While the upfront costs remain substantial, heat pumps could become cheaper to run than gas boilers, according to the Climate Change Committee (CCC), which advises the UK government on cutting emissions.

Savings depend on energy prices and how efficiently the heat pump works.

Electric heat pumps use much less energy than gas boilers, but electricity typically costs more than gas.

At the moment the cost of electricity is primarily driven by gas prices in the UK and around the world, but the government expects this to change as renewable energy sources continue to expand.

What is happening to gas and electricity prices?

How the Iran war may affect your money and bills
The rule was dropped to encourage uptake.

Newer devices are also quieter, and must be below 42db, which is similar to the level of noise produced by a fridge.

Rules specifying the size and number of heat pumps which households can install have also been relaxed.

How many heat pumps have been installed in the UK?

Fewer heat pumps are installed in the UK than gas boilers.

Installation rates are also lower than in other major European countries, like France, Germany and Italy.

But sales are increasing.

Nearly 125,000 heat pumps were sold in 2025, more than double the number in 2023, according to the Heat Pump Association .

However, the CCC says this number needs to rise to nearly 450,000 a year by 2030 and 1.5 million by 2035 to help meet climate targets.

Significantly more trained heat pump installers are needed to achieve this.

A simple guide to climate change
Four ways climate change worsens extreme weather
What you can do to reduce carbon emissions