Costs, Savings & Long-Term Returns
The complete financial picture for air source heat pumps in Scotland. Real numbers, transparent methodology, no spin.
What Does Installation Cost?
A full breakdown of what's included and what affects the price.
What's Included in the Price
Equipment
- Heat pump outdoor unit£3,000-£5,000
- Hot water cylinder£800-£1,500
- Controls & thermostat£300-£600
- Pipework & materials£500-£1,000
Installation
- Labour & installation£2,000-£4,000
- System design & commission£500-£1,000
- Radiator upgrades (if needed)£1,000-£3,000
- Electrical work (if needed)£500-£1,500
After grants: Most Scottish homeowners pay £4,000-£9,000 after applying government grant support (up to £9,000 grant).
Factors That Affect Cost
Property Size
Larger homes need bigger, more powerful (and more expensive) heat pumps. A 2-3 bed home costs less than a 5-bed.
Current Heating System
Replacing gas vs oil vs electric has different requirements. Some existing infrastructure can be reused.
Insulation Level
Better insulated homes may need smaller, cheaper systems. Poor insulation may require insulation work first.
Radiator Compatibility
Modern radiators may be compatible as-is. Older single-panel radiators typically need upgrading.
Your Heating Bill Comparison
Real Scottish energy prices for 2024. Electricity ~28p/kWh, gas ~7p/kWh, oil ~60p/litre.
| Home Type | Heat Pump | Gas Boiler | Oil Heating | LPG | Save vs Oil |
|---|---|---|---|---|---|
| 3-Bed Semi | £900-£1,100 | £1,200-£1,400 | £2,000-£2,400 | £2,200-£2,600 | £1,000-£1,400/yr |
| 4-Bed Detached | £1,200-£1,500 | £1,600-£2,000 | £2,800-£3,400 | £3,000-£3,600 | £1,600-£2,000/yr |
| Bungalow | £800-£1,000 | £1,000-£1,200 | £1,800-£2,200 | £2,000-£2,400 | £900-£1,300/yr |
Important Notes on Running Costs
- Based on 2024 Scottish energy prices
- Assumes heat pump COP of 3.0-3.5 in Scottish conditions
- Well-insulated properties will achieve lower costs
- Economy 7 or smart tariffs can reduce costs by 20-30%
Total Cost of Ownership
The complete picture including installation, running costs, and replacement over 20 years.
| Heating System | Initial Cost | 20-Year Running | Replacement | 20-Year Total |
|---|---|---|---|---|
| Heat Pump | £6,500 | £20,000 | £0 | £26,500 |
| Gas Boiler | £2,500 | £26,000 | £2,500 | £31,000 |
| Oil Heating | £3,000 | £44,000 | £3,000 | £50,000 |
| LPG Heating | £2,800 | £48,000 | £2,800 | £53,600 |
Save vs Gas (20yr)
Save £4,500
Save vs Oil (20yr)
Save £23,500
Save vs LPG (20yr)
Save £27,100
Key Assumptions
- Based on typical 4-bed detached Scottish home
- Includes all maintenance, servicing, and repairs
- Assumes current energy prices (conservative estimate)
- Heat pump lasts 20-25 years; boilers need replacement after 12-15 years
- Heat pump initial cost shown after government grant
- Does not include future energy price rises (which favour heat pumps)
Your Investment Over Time
Cumulative spend comparison vs key alternatives (4-bed detached, after grants)
Bars represent relative cumulative cost over 20 years. Heat pump shown after £5,000 grant deduction.
See Your Specific Numbers
Every home is different. Use our calculator to get personalised estimates based on your property and current heating system.
