Christian Guthier

30 October 2025

More than 200 million heat pump systems are now in use worldwide, and that number is rising fast. They’re proven to work efficiently even in cold countries such as Norway and Canada, showing what’s possible when homes move away from fossil fuels.

In the UK, switching to a heat pump isn’t only about cutting carbon. It’s also about comfort, lower bills, and greater energy independence. Every home that makes the change helps reduce demand for imported gas and builds a more resilient energy system for the future.

Heat pumps offer clean, efficient heating powered by electricity. For many households, they can cut both running costs and emissions – though the upfront cost and questions of suitability can be confusing.

What is a heat pump, and how does it work? 

Heat pumps aren’t new. They’ve been used for decades in countries with far harsher winters than ours. A heat pump transfers existing heat from the air, ground, or water into your home – even when it’s cold outside. There’s always some warmth in the air, even at low temperatures, which the system captures and concentrates to provide heating and hot water. 

Think of a fridge in reverse: it extracts warmth from outside and moves it indoors to heat your home and hot water system. 

There are two main types – air source and ground source. Both are highly efficient, typically producing three to four units of heat for every unit of electricity used. By comparison, a modern gas boiler produces less than one unit of heat for each unit of gas energy it burns. In other words, while a gas boiler’s efficiency is around 90%, a heat pump’s can reach 300–400%. 

Heat pumps deliver steady, low-temperature heat. They work best in well-insulated homes with radiators or underfloor systems designed for gentle, continuous warmth.

What costs to expect 

Installing a heat pump is a significant investment, but there’s growing support to help reduce upfront costs. 

• Air source heat pumps typically cost between £8,000 and £12,000 to install. 

• Ground source heat pumps are more expensive, at around £18,000 to £30,000. 

The exact figure depends on your home’s size, insulation, layout, and the heating system you already have. Older radiators designed for high-temperature gas systems may need upgrading so they can deliver enough warmth at lower water temperatures. 

With the £7,500 Boiler Upgrade Scheme (BUS) grant, the out-of-pocket cost for an air source heat pump can come down to roughly £500–£4,500, depending on the system and property. (For comparison, a standard gas boiler replacement usually costs around £2,500–£4,500.) 

Well-insulated homes generally require smaller systems, reducing both installation and running costs. 

Running costs and savings 

Once installed, a heat pump can be cheaper to run than a gas boiler – particularly if you combine it with a good tariff and sensible energy use. 

At current prices, running costs are roughly comparable to gas, but with time-of-use tariffs or dedicated heat pump tariffs, you can save substantially by running the system when electricity is cheapest. 

If you have solar panels or a home battery, the savings go even further. You can use solar power generated during the day to run your heat pump, or store electricity overnight when tariffs are low and use it during peak hours. 

Together, these smart systems can significantly reduce your bills while cutting your home’s carbon footprint. 

Beyond cost: other benefits 

Heat pumps bring more than just savings. They offer: 

• Comfort – steady, even warmth throughout your home, and cooling in summer if designed for it. 

• Health – improved air quality and reduced damp. 

• Future value – efficient homes are increasingly attractive to buyers. 

• Carbon reduction – emissions can be cut by 60–70% compared with a gas boiler. 

They also future-proof your home as the UK transitions to a cleaner, more flexible energy system. 

What to check before installing 

A heat pump isn’t right for every home, but many can benefit with the right preparation, including homes traditionally seen as ‘difficult’ like listed or older properties.  

Before installing, consider: 

• Insulation and draught-proofing: these make the biggest difference to performance and comfort. 

• Radiators or underfloor heating: ensure they can deliver heat effectively at lower flow temperatures. 

• Outdoor space: air source heat pumps need room for an external unit; ground source systems need space for buried loops. 

• Planning rules: recent changes have made installations easier, though in some dense urban areas noise or space limits may still apply. 

A professional assessment is vital. A qualified installer or Retrofit Coordinator can model your home’s heat demand, estimate costs, and recommend the right system for your needs. 

Planning ahead 

Unlike replacing a gas boiler, installing a heat pump usually takes more time and planning. The system needs to be properly sized for your home, and sometimes radiators or insulation need upgrading first. 

That’s why it’s best to start planning before your current boiler fails. Too often, people end up making a quick “distress purchase” – replacing a broken boiler with another gas system simply because it’s the fastest fix. 

If you’re thinking about switching to a heat pump in the future, take time now to understand your home’s heating needs, check eligibility for grants, and plan the work properly. You’ll have more choice, less pressure, and a system that’s designed to work efficiently for years to come. 

Funding and finance options 

Financial support is improving, helping more households make the switch. 

• Boiler Upgrade Scheme – £7,500 grant for air or ground source heat pumps. 

• Local and community schemes, including the Warm Homes Grant available in some areas. 

• Find energy grants for your home (Help to Heat) – a government tool to check what funding you may be eligible for. 

• Green finance products – an increasing number of lenders now offer low-interest “green loans” or mortgage incentives for energy efficiency upgrades. 

With these supports in place, a well-designed heat pump system can often pay for itself within 8–12 years, through lower energy bills and the long-term savings of moving away from gas. 

The bigger picture: homes, energy, and the grid 

Heat pumps are part of a bigger change in how we use and share energy. When combined with renewable generation such as solar and supported by smart tariffs, they help balance supply and demand – reducing strain on the grid and reliance on imported fuels. 

Each home that switches contributes to a more resilient, locally powered energy system for Oxfordshire and beyond. 

See for yourself 

If you’re curious about heat pumps, the best way to learn is to see them in action. The national Visit a Heat Pump scheme lets you visit real homes, meet people who use them every day, and hear what they think. It’s a great way to cut through the noise and see for yourself how well they work – rather than relying on headlines or opinions from those with vested interests in keeping things as they are. 

Once you’ve seen what’s possible, you can talk to a trusted local supplier to understand what would work best for your home. 

A heat pump isn’t just a heating upgrade – it’s a step towards a warmer, cleaner, and more future-ready home.