Air Source Heat Pump Cost, 2026 Complete Guide
The total installed cost of an air source heat pump typically ranges from £10,000 to £15,000 before the up to £9,000 Boiler Upgrade Scheme grant is applied. After the grant, most homeowners pay between £1,000 and £7,500 net, depending on the property, existing heating system and any additional work required.
This guide explains the full installation cost, annual running costs, worked examples, and realistic payback periods based on current UK energy prices, so you can make an informed decision before requesting your free quote.
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Boiler Upgrade Scheme Eligibility: Who Qualifies for the Up to £9,000 ASHP Grant?
Up to £9,000 Deducted Upfront – Not Paid as Cashback
The BUS grant is deducted directly from your air source heat pump installation cost. You pay the reduced price on day one.
We Handle Every Step of Your BUS Application.
As an approved Boiler Upgrade Scheme installer in Shropshire, Princes LHS manages the entire application. Check your BUS grant eligibility with us for free.
Over 70% of Shropshire Homes Qualify.
Homeowners in England and Wales who are replacing a fossil fuel or electric heating system may qualify for the full up to £9,000 grant. Eligibility takes around ten minutes to confirm.
Global energy prices remain unpredictable in 2026
Oil and LPG prices continue to be affected by international supply disruption. Homeowners still on fossil fuel heating are exposed to these fluctuations every winter. The up to £9,000 BUS grant reduces the cost of switching now to a fixed, efficient alternative.
Installation Costs
Air Source Heat Pump Installation Costs in Shropshire: Full Breakdown
Installation costs vary depending on your property size, heat demand, insulation levels, emitter upgrades, cylinder requirements, and how straightforward the installation is. In most cases, the total installed cost of an air source heat pump falls between £10,000 and £15,000 before grant.
Typical installed cost before grant
£10K to £15K
Includes the full air source heat pump installation, not just the outdoor unit
Boiler Upgrade Scheme grant
Minus up to £9,000
Applied upfront to reduce the amount you pay
Typical net cost after grant
£2.5K to £7.5K
The final amount depends on property requirements and additional works
Cost Component
Typical Range
Notes
Air source heat pump unit, controls and standard installation works
£8,000 to £12,000
Includes the heat pump unit, controls, pipework, commissioning and standard installation labour
Radiator upgrades, where required
£500 to £2,000+
Only needed if existing radiators are undersized for efficient low temperature operation
New unvented heat pump cylinder, supply and installation
£1,500 to £2,000
Typical cost depending on size and specification
Electrical upgrades or distribution board work, if required
£300 to £1,000+
Only applicable where the existing electrical setup needs modification
Underfloor heating (if upgrading)
£1,500 to £6,000
Optional. ASHPs pair extremely well with underfloor heating. Cost depends on floor area and property layout.
Total before BUS grant
£10,000 to £15,000
Typical range for a standard property. Your fixed quote will confirm the exact figure.
Boiler Upgrade Scheme grant
minus up to £9,000
Applied upfront by Princes LHS. No cashback, no waiting.
Your net cost
£1,000 to £7,500
Final confirmed cost after grant. Fixed price - no changes after installation.
All Princes LHS quotes are fixed price. The amount confirmed after survey is the amount you pay. We do not add hidden extras later. Your survey confirms exactly what is included before you proceed.
What You Get
What Is Included in a Princes LHS ASHP Installation?
Your fixed-price quote from Princes LHS covers every element of your air source heat pump installation in Shropshire. Nothing is left out and nothing is added afterwards.
Free Home Energy Assessment
A full heat loss calculation and system sizing survey at your property, carried out by an MCS accredited surveyor at no charge.
Full BUS Grant Application
We submit and manage your entire Boiler Upgrade Scheme application. The up to £9,000 grant is deducted from your invoice before you pay.
Smart Controls and Commissioning
Full system commissioning including controls configuration, weather compensation setup and handover walkthrough for you.
Hot Water Integration
Your ASHP will heat your domestic hot water as well as your central heating circuit. We confirm cylinder requirements at survey.
MCS Accredited Installation
Required for your Boiler Upgrade Scheme application. Every Princes LHS installation is completed to full MCS standards.
Manufacturer-Approved Heat Pump Unit
We install leading manufacturer-approved systems with full warranty. We select the correct output capacity for your property's heat demand.
All Certification and Documentation
MCS certificate, building regulations notification and all documentation required for warranty, insurance and future property sale.
Aftercare Support
Our Ellesmere-based team are available after installation. No call centres, no automated systems, just our own engineers.
Running Costs
Air Source Heat Pump Running Costs vs Gas and Oil Boilers: 2026 Comparison
Running costs depend on your property size, insulation level, the system's SCOP (Seasonal Coefficient of Performance) rating and your electricity tariff. The comparison below is based on a medium-sized three-bedroom property in Shropshire with average insulation, using current UK energy prices.
Air Source Heat Pump (SCOP 3.2)
Annual electricity use
3,500 to 5,000 kWh
Cost per kWh (electricity)
approx. 24p
Estimated annual running cost
£840 to £1,200
Efficiency rating
300%+ (SCOP)
Carbon emissions
Significantly lower
Exposed to fossil fuel price spikes
No
Oil or LPG Boiler
Annual fuel use
1,500 to 2,500 litres
Cost per litre (oil/LPG)
approx. 65p to 85p
Estimated annual running cost
£1,200 to £2,100+
Efficiency rating
80 to 90%
Carbon emissions
High
Exposed to fossil fuel price spikes
Yes
Running cost estimates are indicative. Your actual costs will depend on your property's heat demand, insulation levels and the electricity tariff you are on. Princes LHS provides property-specific running cost projections as part of your free home assessment.
Shropshire properties on oil or LPG heating typically see the greatest annual saving after switching to ASHP, as oil and LPG prices remain directly exposed to international supply events. Check if your property is suitable for ASHP here.
Payback Period
How Long Does an Air Source Heat Pump Take to Pay Back?
The payback period depends on the fuel being replaced, energy prices, and whether a lower-cost electricity tariff is used.
Replacing LPG Heating
approx. 2.1 yrs
LPG running costs of approx. £3,000/yr versus ASHP at approx. £1,028/yr on a standard tariff gives a saving of around £1,972 per year. At a net cost of £5,000 after the BUS grant, payback is approximately 2.1 years. One of the strongest financial cases for switching.
Replacing Oil Heating
approx. 5 yrs
Oil running costs of approx. £1,635/yr versus ASHP at approx. £1,028/yr gives a saving of around £607 per year. Properties with solar PV or on a dedicated heat pump tariff (e.g. Octopus Cosy at approx. 15p/kWh, reducing ASHP running costs to approx. £643/yr) will see faster payback still.
Replacing Electric Heating
approx. 2 yrs
Direct electric heating uses 1 unit of electricity for every 1 unit of heat. An ASHP at SCOP 3.5 uses one unit of electricity to deliver 3.5 units of heat. That efficiency gap makes switching from electric heating one of the fastest paybacks of all, often under two years after the BUS grant.
Replacing a New Condensing Gas Boiler
approx. 11.9 yrs
A new condensing gas boiler at 90% efficiency costs approx. £1,062/yr (including standing charge). On Octopus Cosy at approx. 15p/kWh, ASHP running costs fall to approx. £643/yr, a saving of £419/yr and a payback of around 11.9 years.
Replacing a Non-Condensing Gas Boiler
approx. 8.2 yrs
A non-condensing gas boiler at 75% efficiency costs approx. £1,253/yr (including standing charge). Against ASHP running costs of approx. £643/yr on Octopus Cosy, the saving is around £610/yr and payback approximately 8.2 years.
With Solar PV or Higher Heat Demand
Even faster
Properties with solar panels can use generated electricity to run the heat pump at near-zero marginal cost during daylight hours. Properties with higher heat demand than 15,000 kWh/yr will see proportionally larger savings and faster payback across all fuel types.
All payback figures above use a net installation cost of £5,000 after the up to £9,000 BUS grant, 15,000 kWh annual heat demand, and current fuel and electricity prices. Your actual payback will vary. Princes LHS provides a property-specific payback estimate as part of your free cost assessment.
Cost Factors
What Affects the Cost of an Air Source Heat Pump Installation?
No two properties are identical. The factors below determine where your installation cost falls within the typical £10,000 to £15,000 range before the BUS grant. Your Princes LHS surveyor will assess each of these during your free home visit and confirm the exact cost in your fixed-price quote.
Property Size and Heat Demand
Larger properties require a higher output ASHP unit, which costs more. Your surveyor carries out a full heat loss calculation to size the system correctly, oversizing wastes money, undersizing reduces efficiency.
Insulation Level
Well-insulated properties need a smaller, lower-cost system and achieve a higher SCOP rating. Poor insulation increases heat demand and system size. We identify insulation improvements that deliver the best return before recommending a system.
Existing Radiator Compatibility
If your current radiators are well-sized for low flow temperature operation, no upgrades are needed and cost stays lower. Where upgrades are required, we confirm the number of radiators and include the cost in your fixed quote upfront. Find out more in our ASHP suitability guide.
Hot Water Cylinder Requirement
If your property does not have a suitable hot water cylinder, one will need to be installed. This is confirmed during survey and included in your fixed quote. Typical cost is £600 to £1,200 depending on size.
Location of the External Unit
Straightforward ground-level or wall-mounted installation costs less than complex siting, for example, where extended pipework runs or scaffolding are required. Our surveyors assess access and confirm any additional costs before you proceed.
Underfloor Heating Addition
If you are considering adding underfloor heating at the same time, this can be done as part of the same installation. ASHPs are highly efficient with underfloor heating. Costs vary by floor area and whether it is a new build or retrofit.
Your Questions Answered
Air Source Heat Pump Cost FAQs: Shropshire and North Wales
How much does an air source heat pump cost in the UK in 2026?
The total installed cost of an air source heat pump in the UK typically ranges from £10,000 to £15,000 in 2026 before the up to £9,000 Boiler Upgrade Scheme grant is applied. After the grant, most homeowners pay between £1,000 and £7,500 net.
The exact figure depends on your property size, heat demand, and whether additional works such as radiator upgrades or a hot water cylinder are needed. Princes LHS provides a free fixed-price cost assessment with no obligation to proceed.
Is the up to £9,000 Boiler Upgrade Scheme grant still available in 2026?
Yes. The Boiler Upgrade Scheme grant of up to £9,000 is available to eligible homeowners in England and Wales in 2026. The grant is applied upfront to your installation cost by Princes LHS as your approved BUS installer, so you do not need to claim it back or wait for a rebate.
The BUS is funded by the UK Government and is subject to review, so it is worth applying while the full amount remains available.
How much does an air source heat pump cost to run per year?
Annual running costs for a well-specified ASHP with a SCOP of 3.5, heating a property with 15,000 kWh of annual heat demand, are approximately £1,028 per year on a standard electricity tariff of 24p/kWh. On a dedicated heat pump tariff such as Octopus Cosy at approximately 15p/kWh, this falls to around £643 per year. The key advantage over gas, oil or LPG is that a heat pump delivers 300 to 400% efficiency, whereas a condensing gas boiler is around 90% efficient and an oil boiler 80 to 85% efficient. Princes LHS provides a property-specific running cost projection as part of your free assessment.
Does the air source heat pump cost include removal of my old boiler?
Your Princes LHS fixed-price quote will confirm exactly what is included for your specific property. Removal and responsible disposal of your existing boiler is typically included as part of the installation. This is confirmed at your free home survey so there are no unexpected extras after you agree to proceed.
Can I get finance for an air source heat pump installation?
Princes LHS does not currently offer finance for air source heat pump installations. The up to £9,000 Boiler Upgrade Scheme grant is applied directly to your installation cost, which significantly reduces the upfront amount you need to pay. If you have questions about managing your net cost after the grant, speak to our team when requesting your free quote and we will discuss your options.
Is there VAT on an air source heat pump installation?
Air source heat pump installations in the UK currently benefit from a 0% VAT rate on both the supply and installation of the system. This VAT relief was introduced by HMRC in April 2022 and significantly reduces the overall cost. All Princes LHS quotes reflect this 0% VAT rate. Standard VAT terms apply to any additional works not covered by this relief.
Get in Touch
Get Your Free Air Source Heat Pump Cost Assessment in Shropshire
Find out exactly what your installation will cost, confirm your up to £9,000 BUS grant eligibility, and receive a fixed-price quote from our MCS-accredited team. No obligation. No hidden costs.
Related Guides From Princes LHS
Air Source Heat Pump Installation in Shropshire
Full overview of our MCS accredited ASHP installation service, the BUS grant process and why Princes LHS are Shropshire's trusted choice.
Boiler Upgrade Scheme Eligibility: Who Qualifies?
Full eligibility criteria for the up to £9,000 BUS grant, property types, EPC requirements, heating systems and how to apply with Princes LHS.
Is My Home Suitable for an Air Source Heat Pump?
Radiators, insulation, property type, outdoor space, find out if your Shropshire home is ASHP-ready before you book a survey.
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