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Energy Review
Last updated: 10 August 2026

What are air source heat pumps?

Read our guide to what are air source heat pumps? with practical UK-focused context.

What are air source heat pumps?

What is an air source heat pump?

Key takeaways
Air source heat pumps take heat from the outside air to warm your home and hot water.
They are highly efficient, producing three to four units of heat for every unit of electricity they use.
Average installation costs are around £12,000, but the Boiler Upgrade Scheme offers £7,500 in England and Wales, rising to £9,000 for eligible off-gas-grid homes replacing oil or LPG.
A heat-loss survey will show whether insulation improvements or larger radiators are needed for the system to work efficiently.

An air source heat pump is a low-carbon way to heat your home. It sits outside your property and absorbs natural heat from the air, which it then uses to warm your rooms and your hot water cylinder. They look a bit like standard air conditioning units and come in different sizes based on how much heat your household needs.

A common misunderstanding is that heat pumps generate their own electricity. They do not. Instead, they use a small amount of electricity from your supplier to extract and move heat from the outside air into your home. Using solar panels can reduce the emissions associated with its electricity use. A renewable electricity tariff can support renewable generation, but it does not make the system completely carbon-free. Unlike burning gas, oil, or wood, an air source heat pump produces no carbon emissions on site.

Because they run on electricity, which currently costs more per unit than gas, a heat pump will not automatically slash your energy bills. However, because they are so efficient, they use far less energy overall. Switching to one can reduce your exposure to volatile fossil fuel prices and, if you no longer need a gas supply, allow you to avoid the gas standing charge while helping to future-proof your home.[1]

Our verdict

An air source heat pump is a smart long-term investment if your home is well-insulated, especially with a £7,500 Boiler Upgrade Scheme grant available in England and Wales, rising to £9,000 for eligible off-gas-grid homes replacing oil or LPG.

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How does an air source heat pump work?

The technology inside a heat pump is very similar to the system used in your kitchen fridge, just working in reverse. Instead of pushing heat out to keep the inside cold, it pulls heat in from the outside to keep your house warm.

The process happens in a continuous cycle. First, the unit draws in outside air and passes it over a network of tubes filled with a special refrigerant fluid. This fluid has a very low boiling point, meaning it turns into a gas even when the outside air is cold. A compressor then squeezes this gas. When you compress a gas, its temperature rises significantly. This concentrated heat is then passed through a heat exchanger into your home's central heating system and hot water cylinder. Finally, the gas cools back down into a liquid, and the cycle starts again.

One of the biggest worries people have is whether a heat pump works in the middle of winter. The reality is that modern air source heat pumps can extract useful heat from the air even when temperatures drop to -15°C or lower. While they have to work slightly harder in freezing weather, they are designed to cope with harsh winters.

The main reason heat pumps are so popular is their efficiency. A brand-new gas boiler is usually around 90% to 95% efficient, meaning it turns most of the gas into heat but loses a little bit in the process. An air source heat pump operates at roughly 300% to 400% efficiency. This means that for every 1 unit of electricity it uses to run the compressor, it gathers 3 to 4 units of heat from the outside air. You get much more energy out than you put in.

Types of air source heat pumps

There are two main types of air source heat pump available in the UK. They both extract heat from the outside air in exactly the same way, but they distribute that heat around your home differently. The right choice depends on your current heating setup and what you want the system to do.

Air-to-water heat pumps

Air-to-water systems are the most common models used in the UK. They take heat from the outside air and feed it into a wet central heating system. This means the hot water travels through pipes to your radiators or underfloor heating, just like a traditional gas boiler system. They also connect to a hot water cylinder to provide the hot water for your taps, baths, and showers.

Air-to-air heat pumps

Air-to-air systems take heat from the outside and blow it directly into your rooms through wall-mounted fans, rather than using water and radiators. As well as heating your home in winter, many of these systems can operate in reverse during the summer, acting as air conditioning to cool your house down. The main drawback is that an air-to-air heat pump cannot heat water, so you will need a separate system, such as an electric immersion heater, for your hot water.

FeatureAir-to-waterAir-to-air
Works with radiatorsYesNo
Provides hot waterYesNo
Can cool in summerRarelyYes
BUS grant in England and Wales£7,500 (£9,000 for eligible off-gas-grid oil or LPG homes)£2,500

Is your home suitable for an air source heat pump?

Not every home is immediately ready for a heat pump. Because they work differently from gas or oil boilers, you need to check a few practical details before going ahead with an installation.

Outdoor space
You need a spot outside your home for the main unit, with clear space around it for good airflow.
Indoor space
Air-to-water systems require a hot water cylinder inside the house, which means you need an airing cupboard or utility space.
Insulation
Good insulation helps a heat pump run efficiently, but a heat-loss survey should determine whether any upgrades are needed.
Radiator size
Because the water flowing through the pipes is cooler than a gas boiler, you often need larger radiators to heat the room properly.

The flow temperature is the biggest practical difference. A standard gas boiler sends water to your radiators at around 65°C to 70°C, which makes the radiators hot to the touch and heats a room quickly. A heat pump works best when it sends water at around 35°C to 45°C. To get the same amount of heat into the room at a lower temperature, the heat needs a larger surface area to escape from. This is why underfloor heating works so well with heat pumps, and why installers often recommend swapping your existing radiators for larger ones.

Planning permission rules have also changed to make installations easier. In most cases, installing a heat pump falls under Permitted Development, meaning you do not need to apply for full planning permission. In England, the strict rule that required the pump to be at least one metre from your property boundary was scrapped on 29 May 2025. To qualify for Permitted Development, your installation must pass a strict noise assessment known as MCS 020a. For installations under England's Permitted Development right, MCS 020a is the required sound calculation and noise limit. If you live in a listed building or a conservation area, stricter rules still apply, and you will usually need specific consent from your local authority.[1]

Installation costs and government grants

£12,000
Avg install cost
Pre-grant average
£7,500
Standard BUS grant
England & Wales
300-400%
System efficiency
Typical performance
£855-£1,700
Annual running cost
Varies by home

Installing an air source heat pump is a major investment. In 2026, the average cost of a full installation in the UK is roughly £12,000 to £12,500. Depending on the size of your property, the complexity of the plumbing, and whether you need to upgrade your radiators or hot water cylinder, quotes typically range from around £7,000 to £15,000 before any grants are applied. Ground source heat pumps cost significantly more because they require extensive digging or boreholes in your garden.

To help with these upfront costs, the government offers financial support. The old Renewable Heat Incentive scheme closed in 2022, and the current support system in England and Wales is the Boiler Upgrade Scheme (BUS), which is administered by Ofgem and has government funding allocated through March 2030. This scheme provides a one-off grant that is deducted directly from your installer's quote, meaning you do not have to pay the full amount upfront and wait for a refund.

Current Boiler Upgrade Scheme grants in England and Wales:

  • £7,500 for a standard air-to-water or ground source heat pump.
  • £9,000 for off-gas-grid properties replacing heating oil or LPG with an air-to-water or ground source heat pump (a temporary uplift introduced on 21 July 2026, running until 31 March 2027).
  • £5,000 for an eligible biomass boiler in a rural property that is off the gas grid.
  • £2,500 for air-to-air heat pumps (added to the scheme in April 2026).

Once the system is installed, your annual running costs will depend entirely on how well-insulated your home is and how much heating you use. Typical running costs range from £855 to £1,700 a year. Because electricity is more expensive per unit than gas, a heat pump must run efficiently to save you money on your bills. If your home is draughty, the pump will have to work harder, and your electricity bills will rise. However, a well-designed and well-controlled system can cost less to run than a typical gas boiler, particularly on a heat-pump time-of-use tariff. Savings compared with oil or direct electric heating also depend on your tariff, system design and how you use it.

The advantages and disadvantages

Switching your heating system is a big decision. It helps to weigh up the practical benefits against the drawbacks before you commit.

The main benefits:

  • Highly efficient, producing far more heat than the electricity it consumes.
  • Can cut your home's heating emissions by up to 70%, depending on system design and electricity supply.
  • Removes the need for a gas connection, saving you the daily gas standing charge.
  • Safer than combustion boilers, with no risk of carbon monoxide leaks or need for fuel deliveries.
  • Long lifespan of around 15 years, which is longer than a typical gas boiler.

The main drawbacks:

  • High upfront costs, even with government grants applied.
  • Requires outdoor space for the main unit and indoor space for a water cylinder.
  • Some homes may benefit from insulation upgrades to help the heat pump run efficiently.
  • You may face the cost and disruption of replacing your existing radiators with larger ones.
  • Slower to warm up the house from cold compared to a gas boiler, meaning you need to leave it running at a low, steady temperature.
Heads up: If you live in a flat or a terraced house with no garden, an air source heat pump may not be practical due to the outdoor space required. A heat network or an alternative electric heating system might be more suitable.

What happens during the installation?

Fitting an air source heat pump is more complex than simply swapping a gas boiler for a new one. It usually takes a few days, and you will experience some disruption to your heating and hot water while the work takes place. Use a qualified installer. To claim a Boiler Upgrade Scheme grant, your installer must be MCS-certified for the technology being installed.

The typical installation process:
1
Home survey and design
The installer visits your home to measure your rooms, check your insulation, and calculate your heat demand. They use this to design a system that is exactly the right size for your property.
2
Removing the old system
Your old boiler and any redundant pipework are safely disconnected and removed.
3
Fitting the outdoor unit
The heat pump is secured to a solid base outside your home or mounted on a sturdy wall bracket. The installer ensures there is plenty of space around it for airflow.
4
Indoor plumbing and radiators
The outdoor unit is connected to your indoor hot water cylinder. If your survey showed you need larger radiators or underfloor heating, these are fitted now.
5
Testing and handover
The installer fills the system, tests it thoroughly, and explains how to use the new controls. They will show you how to set the thermostat for a low, steady temperature.

Maintenance and lifespan

Once installed, air source heat pumps require very little day-to-day maintenance. They do not burn fuel, so there is no soot or ash to clean out, and they are generally very reliable. Most units come with a warranty lasting between five and ten years, and a well-maintained heat pump has a typical lifespan of around 15 years.

To keep the system running efficiently, you just need to keep the outdoor unit clear. Check it occasionally to make sure leaves, dust, or garden debris are not blocking the airflow around the fans. If the fan blades look dirty, you can turn the unit off and wipe them down. The manufacturer will also recommend an annual service by a qualified engineer. They will check the electrical connections, clean the internal filters and coils, and ensure the refrigerant fluid is at the correct pressure before winter sets in.

An air source heat pump is an excellent choice for well-insulated homes, offering a highly efficient way to cut emissions and protect against volatile gas prices.

If your home has good insulation and space for the equipment, switching to a heat pump is a smart long-term move. The current Boiler Upgrade Scheme offers £7,500 towards eligible installations in England and Wales, rising to £9,000 for eligible off-gas-grid homes replacing oil or LPG.

However, if your property is draughty, lacks outdoor space, or requires a complete overhaul of the pipework, a heat pump might not be the right fit just yet. You should focus on improving your insulation first to get the best results from any future heating upgrade.

Pros
Highly efficient (300-400%)
Cuts heating emissions by up to 70%
£7,500 BUS grant, rising to £9,000 for eligible off-gas-grid oil or LPG homes
Could remove your gas standing charge if you no longer need a gas supply
Cons
High upfront cost without grants
Requires good home insulation to run cheaply
Needs outdoor space for the unit
May require new, larger radiators

Frequently asked questions

Do air source heat pumps work in freezing weather?

Yes. Modern air source heat pumps are designed to extract heat from the air even when temperatures drop to -15°C or lower. While they use slightly more electricity to run in freezing conditions, they will still keep your home warm throughout a harsh UK winter.

Are heat pumps noisy?

No, modern units are generally very quiet, sounding similar to a low hum or a standard kitchen fridge. To qualify for Permitted Development, installations must pass a strict sound assessment (MCS 020a) to ensure they do not cause a noise nuisance to you or your neighbours.

Can I get a grant for an air source heat pump?

Yes. In England and Wales, the Boiler Upgrade Scheme offers a £7,500 grant for standard installations, or £9,000 if you live off the gas grid and are replacing an oil or LPG system (available until March 2027). Air-to-air systems are also now eligible for a £2,500 grant.

Do I need planning permission for a heat pump?

In most cases, no. Domestic installations usually fall under Permitted Development in England, provided they meet certain size limits and pass the required noise assessment. Listed buildings and conservation areas can have additional restrictions, so check with your local planning authority before installation.

Will a heat pump lower my energy bills?

It depends on what heating system you are replacing and how well-insulated your home is. Heat pumps use electricity, which costs more per unit than gas, but they are incredibly efficient. A well-designed and well-controlled heat pump can be cheaper to run than a gas boiler, particularly on a heat-pump time-of-use tariff. Savings compared with oil or direct electric heating depend on your tariff, system design and how you use it.

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Rob Gibbs

Written by

Rob Gibbs

Hi, I'm Rob, and I run Energy-Review.co.uk. I initially started this project in 2018 when I was looking to switch energy suppliers and found there wasn't a website that provided simple, data-backed reviews on all the suppliers available. Since then, I have spent a lot of time (too much, some may say!) looking at all publicly available data about each supplier and writing reviews using this information. These reviews are updated as regularly as possible, and any data is backed up by a source where necessary. I have also started writing guides on various energy-related topics, which hopefully you will find useful. If you find any issues, please use our contact form to let us know.