Air source heat pumps provide efficient, low‑carbon heating by extracting heat from the outside air.
An air source heat pump (sometimes called an air-to-water heat pump) transfers heat from the outside air to the water in your central heating system. This heats rooms in your home via radiators or underfloor heating. It can also heat water stored in a hot water cylinder for your hot taps, showers, and baths.
Let’s look at the benefits, their installation costs and how much you could save on your energy bills.
The Warm Homes Plan is set to invest close to £15 billion in improving the UK’s homes to cut energy bills.
For people on low incomes, there’ll be fully funded government support to install heat pumps.
There’ll also be low and zero-interest loans available for homeowners regardless of income.
We’ll update this guide when we know more.
For more information, read our blog on what the Warm Homes Plan means for you.
Air source heat pumps take heat from the air and transfer it to a fluid refrigerant. This fluid passes through a compressor, which raises the fluid’s temperature and transfers the heat to your central heating system.
For a more detailed look at how they work, see our in-depth heat pump guide.
There are several benefits of air source heat pumps:
Air source heat pumps are the most common type of domestic heat pump in the UK and are suitable for most types of homes. There are a few things you should consider before deciding whether a heat pump is right for you.
The typical cost of installing an air source heat pump is around £11,000.
The cost of installation varies depending on:
If you live in England and Wales, you can get £7,500 towards an air source heat pump with the Boiler Upgrade Scheme.
For Scotland, you might be able to get an interest-free loan or a grant to make your home more energy efficient.
If you live in Northern Ireland, there isn’t a specific grant currently available but you can still ‘get heat pump ready’ and apply for funding for insulation via NI Energy Advice.
Heat pump running costs can vary depending on:
How much you could save on your energy bills also depends on what heating system you’re replacing.
At the moment, they generally cost slightly more to run compared to new gas and oil boilers.
This is because electricity is around four times more expensive than gas or oil.
But, because heat pumps are so much more efficient, as electricity prices change over time, we expect to see these savings improve. And if you’re replacing any other kind of heating system, you should see savings on your energy bills.
Here are the potential annual savings of installing a standard air source heat pump, including any recommended radiator upgrades, in an average sized, three-bedroom semi-detached home.
Most heat pump installations are considered ‘permitted developments’, meaning you don’t need planning permission.
However, there are exceptions, and it’s best to check with your local planning department. This is especially important if you live in a listed building or conservation area.
Get quotes from certified installers who are both accredited through the Microgeneration Certification Scheme (MCS). We recommend getting quotes from at least three different installers to make sure you’re getting the best value for money.
We’ve got a step-by-step guide that takes you through the whole heat pump installation process, from finding funding all the way to ongoing heat pump maintenance.
Case study
Case study
Case study
Case study
Sign up to Energywire, our monthly newsletter full of news, advice and tips on energy saving and low carbon energy options.
Energy Saving Trust is authorised and regulated by the Financial Conduct Authority (716195) and delivers the Home Energy Scotland Grant and Loan mentioned on this page via Home Energy Scotland on behalf of Scottish Government. Loans are subject to eligibility and terms and conditions.
New energy labels for tumble dryers came into effect in Northern Ireland on 1 July 2025. Here’s what you need to know.
What is Measure, Plan, Act and how can it help get you to corporate net zero?
You should give your energy supplier at least 48 hours’ notice before you move. We walk you through what to do before…
Last updated: 8 May 2026
Get free, monthly energy advice you can trust
Subscribe
