If you are looking to replace an old, inefficient gas or oil boiler, an air source heat pump (ASHP) is undoubtedly the smartest upgrade for your home. They are incredibly energy-efficient, environmentally friendly, and provide reliable year-round heating.

But let’s talk about the elephant in the room: the upfront cost.

Historically, the initial price tag of a heat pump has made homeowners hesitate. However, thanks to current government incentives in 2026, installing a heat pump in the UK is now cheaper and more accessible than ever before. In fact, it can often cost you less than a premium gas boiler replacement.

Here is a transparent breakdown of what you can expect to pay for an air source heat pump in Derbyshire today.

The Average Cost of a Heat Pump Before the Grant

Every home in Derbyshire is different, from modern new builds in Derby to traditional stone farmhouses in the Peak District. Because every heat pump system is custom-designed for the specific property, there is no single “one-size-fits-all” price.

However, on average, the total cost to supply and install an air-to-water air source heat pump in the UK typically ranges between £10,000 and £14,000.

This price usually includes:

The external air source heat pump unit.
A new, highly insulated hot water cylinder.
Professional installation, pipework, and electrical wiring.
Upgraded radiators (if your current ones are too small to run efficiently at lower flow temperatures).

At first glance, £10,000+ sounds like a significant investment. But that is before you factor in the Boiler Upgrade Scheme.

The Game Changer: The £7,500 Boiler Upgrade Scheme (BUS)

To help the UK reach its Net Zero targets, the government is actively helping homeowners transition away from fossil fuels. Through the Boiler Upgrade Scheme (BUS), eligible homeowners in England and Wales can receive a massive £7,500 upfront grant toward the cost of an air source heat pump.

When you subtract this £7,500 grant from the average installation cost, your personal contribution drops drastically—often bringing your total out-of-pocket expense down to between £2,500 and £6,500.

Suddenly, the cost of a state-of-the-art renewable heating system is comparable to—or even cheaper than—installing a standard replacement gas boiler!

How do I claim the £7,500 grant?

You don’t have to navigate endless government portals or fill out complex paperwork. As certified, BUS-approved installers at Derbyshire Renewables, we handle the entire grant application for you. During your home survey, we will confirm your property’s eligibility. We then apply for the voucher on your behalf and simply deduct the £7,500 directly from your final quote. You only pay the remaining balance.

(Bonus: Heat pump installations are also currently subject to 0% VAT, saving you an additional 20% on the total cost!)

Running Costs: Heat Pump vs. Gas Boiler

The savings don’t stop at the installation. Because heat pumps don’t generate heat but rather transfer it from the outside air, they are remarkably efficient.

A modern gas boiler operates at around 90% efficiency. A modern air source heat pump operates at around 320% to 450% efficiency. This means for every 1 unit of electricity you pay for, you get 3 to 4 units of heat into your home.

When your heat pump is paired with a well-insulated home and a smart, off-peak electricity tariff designed for heat pumps, your annual heating bills can drop significantly compared to running an older, less efficient gas or oil boiler.

Get a Fixed Price for Your Derbyshire Home

Online estimates are helpful, but the only way to know exactly how much an air source heat pump will cost for your specific property is to have a professional home survey.

At Derbyshire Renewables, we provide honest, transparent quotes with no hidden fees and no high-pressure sales tactics. We will assess your insulation, measure your rooms, design a bespoke system, and show you exactly what your final price will be with the £7,500 grant applied.

Ready to find out exactly how much you could save?

Book Your Free Home Survey Today