How to get a heat pump plus installation for around £5k

British Gas heat pump installation
(Image credit: British Gas)

Heat pump installations will be available for just £4,999 from British Gas to help make the low-carbon heating systems more affordable for homeowners.

Air source heat pumps (ASHP) and ground source heat pumps (GSHP) can help homeowners lower their carbon footprint, compared with using gas boilers, but their cost can be prohibitively expensive for some households.

Installing an ASHP usually costs between £12,000 and £17,000, according to EDF Energy. GSHPs meanwhile can cost as much as £19,000 or higher to install depending on the complexity of the heat pump system.

Centrica, the parent company of British Gas, told Homebuilding & Renovating that the £4,999 price applies once a household has applied for an ASHP on the Boiler Upgrade Scheme. 

The scheme offers £5,000 towards the cost of an ASHP, although households will be expected to pay the difference if costs exceed the grant, which will be discounted off the price you pay. ASHP cost anything from £1,600 for a small mono block air source unit to £14,000 for a top end large capacity fan unit.

The offer applies to a standard ASHP up to 7kW and a cylinder (which effectively stores hot water) with a capacity of up to 200L. Customers will also be offered five years’ interest-free credit and five years’ warranty after installation. 

Andrew Middleton, managing director, Net Zero Ventures at British Gas, said: “While we recognise that many households are being cautious with their spending in the current climate, we’re encouraging those customers who can make the move to low-carbon heating to do so now, and benefit from the government incentives for early adopters.”

An incentive for early heat pump adopters

Ministers hope that heat pumps could cost the same as gas boilers by 2030, but British Gas has introduced the additional incentive in the hope of making heat pumps even more affordable for homeowners.

Middleton added: “Heat pumps are an essential part of the UK’s journey towards a decarbonised future. Installing a heat pump is one of the single best things households can do today to lower their carbon footprint. While specifications will differ to suit a variety of homes, it’s important we act now to start customers on this journey.”

The government has set a target of installing 600,000 heat pumps in homes per year by 2028, and British Gas has committed to training 3,500 apprentices to learn heat pump installation skills over the next decade.

British Gas also has plans to incorporate Hive Active Heating controls as part of the installation so households can manage their heating remotely and improve their energy efficiency further. 

The company has already installed over 1,500 heat pumps, starting in the south west, and it is now rolling out installations nationwide. 

The Boiler Upgrade Scheme is a government incentive that launched earlier this year to help households embrace heat pump technology. It also offers £5,000 towards the cost of installing a biomass boiler and £6,000 towards installing a GSHP.

Jack Woodfield
News Editor

Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms. 


He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.