Working file M3.1
Air-source heat pump cost (2026)
Air-source heat pump cost: installed cost range with each end sourced, BUS grant treatment, payback shape.
Cost in 2026
Air-source heat pump cost (2026). The published installed range in 2026 is £10,500 to £18,000 installed for a 7 to 12 kW unit (DESNZ guidance and MCS Installation Database). Net after the £7,500 BUS grant: £3,000 to £10,500. Both ends of that range are stated rather than collapsed to a midpoint, because the spread reflects real differences in scope, access and grant eligibility rather than installer mark-up.
What drives the spread
- Unit kW size; oversize is the most common cost error.
- Refrigerant: R32 vs R290 propane (the R290 units are now in volume).
- Cylinder swap to indirect plus immersion.
- Pipework upgrade if microbore.
- Radiator upsize for low-temp design (often a separate £1,800 to £4,500 line).
Where it sits in the PAS 2035 sequence
Heating stratum, third in PAS 2035 sequence.
Surveyed 22 June 2026. Ofgem Q3 2026 cap applied (gas 7.33p, elec 26.11p, gas standing 29.04p). Next scheduled review 26 September 2026 (Q4 cap publication). [ref M3.1]
By Oliver Wakefield-Smith, Founder, Digital Signet. Corrections to oliver at digitalsignet dot com.