Price guide
How much does a heat pump cost in the Cotswolds?
Short answer
The national median cost of an air source heat pump was £12,908 in April to June 2026, before the grant. The Boiler Upgrade Scheme takes off £7,500, or £9,000 for oil and LPG homes until 31 March 2027. A ground source heat pump costs much more. Prices vary; get at least three written quotes.
National heat pump costs
Government data puts a typical air source heat pump at about £13,000 before the grant. These are national figures, not Cotswold quotes. The government figures come from installations paid for under the Boiler Upgrade Scheme.
| Source | System | National cost |
|---|---|---|
| DESNZ Boiler Upgrade Scheme statistics | Air source (air to water), median, April to June 2026 | £12,908 |
| DESNZ Boiler Upgrade Scheme statistics | Ground source, median, April to June 2026 | £27,232 |
| Energy Saving Trust | Air source, typical installation | Around £12,000 |
| MCS | Air source, 2025 average from the MCS Data Dashboard | Around £13,300 |
National figures from DESNZ (Boiler Upgrade Scheme statistics, August 2026), the Energy Saving Trust (updated 23 September 2026) and MCS, checked on 15 October 2026. They are national averages, not local prices. Sources: GOV.UK: Boiler Upgrade Scheme statistics, August 2026, Energy Saving Trust: air source heat pumps (updated 23 September 2026), MCS: air source heat pumps.
The Boiler Upgrade Scheme grant
The grant is £7,500 for an air source or ground source heat pump. Homes heated by oil or LPG with no mains gas get £1,500 more, so £9,000, until 31 March 2027.
You must own the home in England or Wales, and replace oil, gas, electric or LPG heating. An MCS-certified installer applies to Ofgem for you, and the grant comes off your quote. Funding is confirmed to 2029/30.
Grant amounts from GOV.UK and Ofgem, checked on 15 October 2026. One grant per property. Hybrid systems are not eligible. Sources: GOV.UK: Boiler Upgrade Scheme, what you can get, GOV.UK: Boiler Upgrade Scheme, check if you are eligible, Ofgem: Boiler Upgrade Scheme, GOV.UK: Boiler Upgrade Scheme statistics, August 2026.
What you pay after the grant
On the national median cost, you would pay about £5,408 after the £7,500 grant. An oil or LPG home on the £9,000 rate would pay about £3,908. This is a simple sum on the national median, not a quote.
One local firm publishes guide prices. Priority One Plumbing in Gloucester gives air source prices from £8,000 to £18,000 before the grant, by home size.
Guide prices that Priority One Plumbing publishes on its own website, checked on 15 October 2026. The page marks them "+VAT" but also says no VAT applies until March 2027. GOV.UK says heat pump installation in homes is zero-rated until 31 March 2027. Ask the firm. Sources: Priority One Plumbing (Churchdown, Gloucester): air source heat pumps, GOV.UK: VAT on energy-saving materials and heating equipment (Notice 708/6).
What makes a heat pump cost more in the Cotswolds
Old stone houses often need more radiator changes. A heat pump runs at a lower temperature, so some rooms need larger radiators to stay warm.
A new hot water cylinder adds cost if you have a combi boiler now.
Listed buildings and conservation areas can need planning permission or consent. This adds time and fees.
Ground source systems need trenches or a borehole, so they cost about twice as much as air source on the national figures above.
Taking away an old oil tank adds cost. Ask if it is in the quote.
How to compare heat pump quotes
Prices vary; get at least three written quotes. Ask each MCS installer for a room-by-room heat loss calculation, so you compare like with like.
- Ask if the price is before or after the grant.
- Ask which radiators and pipes change, and if they are in the price.
- Ask if a cylinder, controls and removal of the old boiler or tank are included.
- Check the firm on the MCS register.
- Ask what flow temperature and running cost the firm expects.
Questions
Is there VAT on a heat pump?
Not at the moment. GOV.UK says installing a heat pump in a home is zero-rated for VAT until 31 March 2027. After that, the rate goes to 5%.
Can I get the £9,000 grant?
Yes, if your home is heated by oil or LPG and has no mains gas, and you apply before 31 March 2027. Your MCS installer applies for you.
Is a ground source heat pump worth the extra cost?
It can be for a large home with land. It costs about twice as much on national figures, but it can run more efficiently. Ask an installer to compare both.
Sources
- GOV.UK: Boiler Upgrade Scheme statistics, August 2026
- GOV.UK: Boiler Upgrade Scheme, what you can get
- GOV.UK: Boiler Upgrade Scheme, check if you are eligible
- Ofgem: Boiler Upgrade Scheme
- Energy Saving Trust: air source heat pumps (updated 23 September 2026)
- MCS: air source heat pumps
- Priority One Plumbing (Churchdown, Gloucester): air source heat pumps
- GOV.UK: VAT on energy-saving materials and heating equipment (Notice 708/6)