What Does a Heat Pump Installation Actually Cost in 2026?

What Does a Heat Pump Installation Actually Cost?

The typical cost of an air source heat pump installation in Cornwall ranges from £8,000 to £14,000 before the government grant. After the £7,500 Boiler Upgrade Scheme grant, most homeowners pay between £2,500 and £6,500 out of pocket.

The wide range reflects genuine differences in property size, system complexity, and the amount of ancillary work required. A straightforward swap in a well-insulated three-bedroom semi will sit at the lower end, while a larger detached property needing new radiators or cylinder pipework will be towards the top.

For a more detailed breakdown, see our dedicated heat pump costs guide.

What Affects the Price?

Several factors determine where your installation falls within that range:

• Property size and heat loss — Larger homes need larger heat pumps, which cost more. We carry out a full heat loss calculation during the free home survey to size the system correctly.
• Radiator upgrades — Heat pumps operate at lower flow temperatures than boilers, so some radiators may need upsizing. Not every radiator needs replacing — often only a handful do.
• Hot water cylinder — If your current cylinder is old or undersized, a new heat pump-compatible cylinder will be part of the quote.
• Pipework modifications — Older pipework in microbore copper may need upgrading in certain areas of the house.
• Underfloor heating — If you are adding underfloor heating at the same time, this adds to the overall project cost but improves heat pump efficiency significantly.

The £7,500 BUS Grant

The Boiler Upgrade Scheme provides a £7,500 voucher towards the cost of a heat pump when replacing a fossil fuel heating system. As MCS certified installers, we apply for this grant on your behalf — the amount is deducted directly from your quote, so you only pay the balance.

The scheme is available in England and Wales and covers air source heat pumps. You need a valid EPC and must be replacing an existing fossil fuel boiler (gas, oil, or LPG). Read our full grants and funding guide for all available schemes.

Running Costs Compared to Gas and Oil

A properly installed heat pump typically costs £500–£900 per year to run for a medium-sized home. This compares to around £800–£1,200 for gas and £1,400–£2,000 for oil at current prices.

The advantage grows further if you pair a heat pump with solar panels — using free solar electricity to run the heat pump during daylight hours can reduce running costs by another 30–40%. Add battery storage and you can shift solar generation into the evening too.

For a full side-by-side comparison, see our heat pump vs gas boiler guide.

Is a Heat Pump Worth It Financially?

With the £7,500 grant, most homeowners see a return on investment within 6–10 years through lower energy bills. After that, you are saving money every year for the remaining 15+ years of the heat pump's lifespan. Oil and LPG households typically see faster payback due to higher existing fuel costs.

Beyond the financial case, a heat pump future-proofs your home against rising gas prices and the planned phase-out of fossil fuel boilers. It also improves your EPC rating, adding value to your property.

Getting a Quote in Cornwall

We install heat pumps across Cornwall including St Austell, Bodmin, Truro, Newquay, Fowey, and Wadebridge. See all areas we cover.

Every quote starts with a free home survey where we assess your property, calculate heat loss, and design a system tailored to your home. Book your free survey or call us to discuss your project.