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20th January, 2025

Heat Pumps: The Ultimate UK guide

Heat Pumps: The Ultimate UK guide

Key takeaways

  • Heat pumps capture heat from the air outside and transfer it to the inside of a property, supplying very efficient central heating.
  • Heat pumps can be very expensive in terms of initial costs, with some being into the tens of thousands.
  • Many properties are more suited to a new gas boiler, this represents the most efficient.
  • Try a new boiler quote, finance available including 0% APR.

As energy efficiency and environmental concerns continue to shape our choices, heat pumps have emerged as a popular option for heating and cooling homes.

What is a Heat Pump and How Do They Work?

A heat pump is an energy-efficient system that moves heat from the outside air, ground, or water into your home. Using refrigerants and compressors, heat pumps absorb heat even from cold air, compress it to raise the temperature, and transfer it indoors to heat your space or water.

The refrigerant circulates in a loop, absorbing and releasing heat to provide consistent, renewable heating for your home.

Heat pumps are well-suited for energy-conscious homes as they reduce reliance on fossil fuels and lower carbon emissions.

The installation of heat pumps is typically more expensive than traditional heating options, but they offer high energy efficiency and long-term cost savings. For optimal results, heat pumps work best in well-insulated homes.

Energy Efficiency and Cost Savings

Heat pumps are incredibly energy-efficient, especially in moderate climates or well-insulated homes. For every unit of electricity consumed, they can produce multiple units of heat, making them more efficient than traditional heating methods.

This efficiency can lead to considerable savings on your energy bills, potentially covering the initial higher costs over time. With a heat pump, you’re also lowering your carbon footprint, as they use renewable energy sources and produce fewer emissions.

Advantages of Heat Pumps

  1. Eco-Friendly Heating: By using renewable energy sources, heat pumps reduce household carbon emissions and support sustainable living.

  2. Year-Round Comfort: Heat pumps offer both heating and cooling, making them versatile for all seasons.

  3. Durable System: Properly maintained heat pumps can last 15-20 years, providing reliable service for a long period.

  4. Boosts Property Value: Homes with energy-efficient systems like heat pumps are often more appealing in today’s eco-conscious market.

Types of Heat Pumps

Air-Source Heat Pumps

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These extract heat from the air and are available in two main types:

Air-to-Air

  • This type heats the air indoors through a fan system and is suitable for homes with ductwork.

Air-to-Water

  • This system transfers heat to water-based systems, such as radiators or underfloor heating, making it ideal for homes without ductwork.

Ground-Source (Geothermal) Heat Pumps

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By extracting heat from the ground through buried pipes, ground-source heat pumps offer a stable source of heat due to the consistent temperature underground. Although installation costs are higher, they provide dependable energy savings, making them a worthwhile investment for certain properties.

When a Gas Boiler Might Be a Better Choice

While heat pumps offer efficient, renewable heating, there are still scenarios where a gas boiler might be more practical, particularly in many UK homes:

  1. Cold Climates: In extremely cold weather, heat pumps can struggle to reach high temperatures, whereas gas boilers provide strong heating even in freezing conditions.

  2. Existing Gas Infrastructure: If you already have a well-functioning gas system, installing a new boiler can be a straightforward and cost-effective solution.

  3. Lower Initial Investment: Gas boilers generally come with a lower upfront cost than heat pumps, making them an appealing option for budget-conscious households.

UK Government’s Boiler Upgrade Scheme

The UK Government’s Boiler Upgrade Scheme incentivises the switch to eco-friendly heating systems by offering financial support to eligible homeowners. Through this scheme, homeowners can receive grants to cover part of the installation costs for heat pumps and other renewable heating systems.

  • Air-Source Heat Pump Grant: £5,000 off installation costs

  • Ground-Source Heat Pump Grant: £6,000 off installation costs

  • Biomass Boiler Grant: £5,000 off installation costs

Despite an initial underperformance, the scheme continues with £300 million allocated over two years to help more homeowners make the switch to heat pumps and reduce their carbon footprint.

Advantages of Both Heat Pumps & Modern Gas Boilers

Heat Pump Pros

Modern Gas Boiler Pros


  • Potential savings - Heat pumps have generated a lot of buzz due to their potential to generate long term savings for prospective buyers. Heat pumps are extremely efficient in the production of heat energy, meaning a reduction in heating bills, saving prospective buyers what could turn out to be a significant amount of money each year.


  • Very efficient - Modern gas boilers are extremely efficient with most having an ErP classification of A with an energy efficiency percentage in the 90s. Upgrading an older, antiquated boiler to a new efficient combi, could save a homeowner in the region of £400 a year (per Energy Savings Trust) 


  • Reduces carbon emissions - The efficiency of a heat pump’s conversion rate and the fact it does not burn a fuel to operate, lowers a household's carbon emissions. This not only helps the planet, but also increases the safety of the home’s occupants.


  • Cheap to run - Gas is one of the cheapest types of fuel available, ensuring low running costs for modern, efficient combi boilers. This is especially beneficial in these times of unprecedented energy prices.


  • Long lifespan - On average the lifespan of a heat pump installation is around 15 years, some can however last up to 50 years!


  • Abundant - modern combi and system boilers are extremely popular in the UK, meaning their parts are easily replaced should an issue occur.


  • Can provide cooling air - When it’s hot outside, certain heat pumps are actually capable of reversing their operational process to perform like an air conditioning unit.


  • Easy to install - modern gas boilers are a relatively easy install for a trained engineer, between 1-2 days is the average time for a new gas boiler, offering minimal disruption and property upheaval 


  • Government help initiatives - The government introduced the boiler upgrade scheme. This £450 million initiative comes as part of the Heat and Buildings Strategy that offers a £6,000 reduction of the supply and installation of a ground source (£5000 for air source) heat pump for property owners in England and Wales.


  • Low unit cost - modern gas boilers are comparatively cheap per unit, especially when compared to some heat pumps, with some models costing up to 20 times less!

Disadvantages of Both Heat Pumps & Modern Gas Boilers

Heat Pump Cons

Gas Boiler Cons


  • High initial system cost  - Heat pumps demand a very high initial purchase price with some units costing upwards of £45,000! This can negate the idea of savings offered by installing a heat pump for many people.


  • No cooling function - Gas boilers don’t have a cooling or air conditioning modality or setting


  • Electricity cost - Electricity, as mentioned, is one of the most costly types of fuel available, especially when compared to gas.


  • Not the most environmentally friendly - Gas boilers rely on the combustion of carbon based fuel, even though gas boilers have made great green strides, they are still not carbon neutral


  • Not entirely carbon neutral - Despite being reliant upon electricity to function, heat pumps are not totally carbon neutral, this is because the process of producing the electricity can be quite a carbon intensive task.


  • Servicing - Gas fuelled boilers can require a yearly inspection, known as servicing, not a legal requirement but an encouraged proactive measure.


  • Not every property is suited for heat pumps - Some properties don’t have sufficient insulation to be an ideal heat pump location. Without considerable insulation, the heat generated from a pump would be lost. Loft and cavity wall insulation can bump up the cost of a heat pump installation considerably.

New Boiler Costs

Boilers can be a daunting purchase for many people as they’re an appliance with a lot of responsibility, providing heat for you and your family is something you want to get right. Boilers aren’t exactly a quickly disposable item either, potentially lasting you a decade.

Boiler costs can be split into two segments: the first is the actual boiler itself (unit price), and the second is the cost of the boiler being installed (set up) in your property by an expert engineer. 

Here at iHeat, we want to remove all of this undue stress and make the decision making process of upgrading to a new central heating system, as easy as possible.

Boiler costs can vary depending on a number of factors including their brand, model, fuel, output, warranty, labour and installation type. Typically a new boiler will cost between £1,845 and £3,500, below is a list of average boiler installations offered by iHeat.

Installation Type

Price (inc VAT)

Combi to combi swap

£1,845

Get a quote

System to combi conversion

£2,499

Get a quote

New boiler install

£2,899

Get a quote

Back boiler to a combi

£3,299

Get a quote

System to system

£1,945

Get a quote

Some location factors that can influence the price of your new boiler

You will be given a specific quote from the boiler installation company based on:

The type of home you have (i.e. terraced, semi-detached, etc.)

  • How many bedrooms you have

  • How many bathrooms you have

Hybrid Heat Pump: The best of both worlds

Alpha E-TEC Hybrid Heat Pump

The Alpha E-Tec Hybrid heat pump is a heating solution that its manufacturers claim to be both a gateway into renewable heating, while never compromising on the reliability provided from a traditional gas boiler.

Key Features:

This boiler is a highly efficient and modern combi and can run off traditional mains gas or LPG (ideal for off-grid properties).

Alpha have designed this boiler to be installed without the requirement of an airing cupboard for housing, making this type of install extremely simple for a Gas Safe registered engineer.

An Alpha E-Tec Hybrid can be fully synchronised with modern and convenient smart tech controls, allowing for instant and efficient temperature regulation. 

A small temperature control dial is included with the installation, simple to use and portable to a bedside table, kitchen side top or coffee table next to a sofa, meaning you can warm up your home from wherever you like.

The E-Tec boiler uses a feature called ‘outdoor temperature and demand’ to monitor and adjust flow temperature. Sensors on the outdoor heat pump will detect low temperatures and switch your heating on to combat the cold, including radiators in any room you require!

The heat pump will switch on at a certain temperature removing unnecessary strain from your boiler, a highly cost effective route as energy and gas tariffs are analysed in order to ascertain the most efficient and financially responsible way to heat your home.

Your current energy consumption data is put into the Alpha software and smartphone app to produce the best possible heating strategy for you, and any time your needs or bills change you can filter in new data to re-calibrate your plan.

Alpha studied annual energy usage and have determined 60% of the year the heat pump will be the most financially viable heating option, allowing for huge potential savings on your gas bill as heat pumps run on electricity.

Is It Worth Getting A New Gas Boiler?

Despite recent misconceptions that there is a looming ‘ban’ on gas boilers, this is actually incorrect!

It’s still completely legal to buy and install a new gas boiler in any type of property, the supposed ‘ban’ only applies to new build properties after 2025.

There is no current financial penalty to keeping an existing gas boiler in any type of property past 2025, or installing a new gas boiler in any pre existing property past 2025.

New gas boilers blend efficiency, safety, cost effectiveness and versatility, hence their constantly rising popularity.

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Frequently Asked Questions

What is the downside to a heat pump?

One downside of a heat pump is that its efficiency decreases in very cold temperatures. In extremely cold climates, a heat pump may require supplementary heating. The installation cost is also higher than traditional heating systems, and the outdoor unit can generate noise, which might be a concern in some areas.

Are heat pumps worth buying?

Heat pumps can be worth buying, particularly for homes that need both heating and cooling. They are energy-efficient and can reduce carbon emissions. Over time, they may also lower heating costs, especially in well-insulated homes. However, the high upfront cost and installation complexity may not make them suitable for all properties.

What houses are not suitable for heat pumps?

Houses with poor insulation or those located in extremely cold climates may not be suitable for heat pumps, as they may struggle to maintain efficient operation. Additionally, properties without space for the outdoor unit or homes with an existing incompatible heating system may also face challenges when integrating a heat pump.

Is it expensive to run a heat pump?

The running costs of a heat pump depend on the type, size of the property, and the efficiency of the unit. While heat pumps are more energy-efficient than traditional heating systems, they can still lead to higher electricity bills, particularly in colder weather when they need to work harder to maintain indoor temperatures.

Why is my electric bill so high with an air source heat pump?

A high electric bill with an air source heat pump can be caused by running the system at higher temperatures, especially in very cold weather. Poor maintenance, such as dirty filters, or an undersized unit for your home can also make the system work less efficiently. Supplementary heating may also be needed in colder months, increasing the running costs.

What is cheaper to run, a boiler or a heat pump?

Heat pumps are generally cheaper to run than gas or oil boilers, as they are more energy-efficient. They use less electricity to transfer heat, making them a more cost-effective option for heating. However, the cost of running a heat pump can vary depending on electricity rates and the climate. Boilers, on the other hand, may be cheaper to install initially, but they tend to have higher ongoing fuel costs.

How much does it cost to install a heat pump in the UK?

The installation cost of a heat pump in the UK typically ranges from £6,000 to £8,000 for an air-source heat pump, including installation. Ground-source heat pumps tend to be more expensive, ranging from £10,000 to £18,000. The cost can vary depending on the size of the property, system type, and any necessary adjustments to your existing heating infrastructure.

Stephen Day profile photo
Article by
Stephen Day

Co-founder

Gas Safe registered and FGAS certified engineer with over 20 years experience in the heating and cooling industry.