Heat pump or new boiler?
A new gas boiler costs roughly £1,800 to £3,500 installed; an air source heat pump £8,000 to £14,000. But the £7,500 Boiler Upgrade Scheme grant (England and Wales) brings most heat pump installs to £500 to £6,500, with 0% VAT until 31 March 2027. The maths has genuinely changed.
The comparison, honestly
- New boiler: £1,800 to £3,500 installed, familiar, fast.
- Heat pump before grant: £8,000 to £14,000 installed.
- After the £7,500 grant: £500 to £6,500, comparable to a premium boiler.
- 0% VAT on installations until 31 March 2027.
Replacing like-for-like anyway? Price it in the boiler cost guide. Renovating the whole house is the natural heat pump moment: insulation, radiators and system design in one plan.
Frequently asked questions
Is my house suitable for a heat pump?
The honest test is insulation and radiator sizing, not age: a heat pump runs at lower temperatures, so poorly insulated homes or undersized radiators need upgrades first. A proper heat loss survey answers it; be wary of anyone quoting without one.
How do I get the Boiler Upgrade Scheme grant?
Through an MCS-certified installer, who applies on your behalf and deducts the grant from the quote. Conditions: England and Wales, replacing a fossil fuel system, and a valid EPC without outstanding loft or cavity insulation recommendations in most cases.
What about running costs?
A well-designed heat pump delivers three or more units of heat per unit of electricity, which beats gas on efficiency but not always on price per kWh. The design quality decides it; a badly sized system disappoints in exactly the way the sceptics predict.