COST GUIDES
Heat pump water heater cost: 2026 UK prices
Updated 07/26

Fast Facts
Typical installed cost: £8,750–£12,500 for most homes
Biggest pricing factor: Home size and hot water demand
Installation: Should be carried out by a qualified heating engineer, with electrical work completed by a qualified electrician where required
If your hot water bills are climbing, you might be wondering whether there's a more energy-efficient way to keep the hot taps running.
A heat pump water heater uses heat from the air around it to warm your hot water, rather than generating heat directly with an electric element.
While the upfront installation cost is higher than a standard electric water heater, they're significantly cheaper to run and can reduce your household's energy bills over time.
This guide explains typical installation costs for a heat pump water heater, running costs, what affects the price and whether it's worth the investment.
How much does a heat pump water heater cost?
Most homeowners can expect to pay between £8,750–£12,500 to supply and install a heat pump water heater.
The exact cost depends on the size of your home, your hot water demand and whether additional plumbing or electrical work is required.
| Home Size | Low | High | Average |
|---|---|---|---|
| Small Bungalow (2 bed) | £7,450 | £8,900 | £8,250 |
| Terraced House (2-3 bed) | £7,950 | £9,700 | £9,450 |
| Semi-Detached House (2-3 bed) | £8,950 | £10,925 | £10,615 |
| Detached House (3-4 bed) | £10,650 | £14,500 | £12,900 |
| Last updated: July 2026 Our costs are ballpark averages - get a local tradesperson to quote now | |||
Heat pump water heater supply costs
A typical heat pump water heater costs between £1,950 and £3,500, with an average supply-only cost of around £2,750.
Installation costs
Heating engineers typically charge labour rates comparable to plumber day rates of around £325–£375 per day.
Most installations take one to two days, depending on the complexity of the installation.
Compare quotes for a heat pump water heater
Every property is different, so the best way to understand what your installation will cost is to compare quotes from a selection of checked heating engineers.
When requesting quotes, it helps to know:
The number of bathrooms in your home
Whether you already have a suitable hot water cylinder
Where you'd like the unit installed
Whether any plumbing or electrical upgrades may be needed
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What's included in a heat pump water heater quote?
A full installation quote will usually include:
The heat pump water heater
A compatible hot water cylinder (where required)
Pipework connecting the system to your existing plumbing
Electrical connections
Commissioning and testing
Removal of the existing water heater (where agreed)
Some quotes may exclude the hot water cylinder, so it's always best to check exactly what's included before accepting a quote.
If you need a new cylinder, expect to pay around £400–£2,000, depending on its size and specification.

What affects the cost of a heat pump water heater?
Several factors influence the overall installation cost of a heat pump water heater, including:
Home size: Larger homes generally require higher-capacity systems to meet greater hot water demand, increasing both equipment and installation costs
Number of bathrooms: More bathrooms and hot water outlets usually mean a larger cylinder or higher-output system is needed
Existing hot water cylinder: If your current cylinder is compatible, you may avoid the cost of purchasing a replacement
Installation complexity: If additional plumbing, electrical work or alterations to the installation location are required, labour costs will increase
Property location: Labour rates are typically higher in London and the South East than elsewhere in the UK

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Additional costs to consider
Alongside the installation cost, there may be a few additional expenses to budget for.
Hot water cylinder
If your existing cylinder isn't compatible, replacing it could add around £400–£2,000 to the project cost.
Annual servicing
To keep your system operating efficiently and maintain the manufacturer's warranty, it's sensible to budget around £150–£300 per year for servicing.
Electrical upgrades
Some installations may require additional electrical work, such as upgrading wiring or installing a new electrical connection, which can increase the overall installation cost.

How much does it cost to run a heat pump water heater?
One of the biggest advantages of a heat pump water heater is its efficiency.
Based on average household hot water use, a heat pump water heater typically costs around £140 per year to run, compared with approximately £420 per year for a standard electric water heater.
Actual running costs will depend on your electricity tariff, household hot water usage and how efficiently your system operates.

Why are heat pump water heaters cheaper to run?
Unlike a traditional electric water heater, a heat pump water heater doesn't generate heat directly.
Instead, it extracts heat from the surrounding air and transfers it into your hot water cylinder.
This allows it to produce around two to three units of heat for every unit of electricity used. This efficiency is measured using the Coefficient of Performance (COP). The higher the COP, the more heat the system produces for each unit of electricity it consumes.
That's why heat pump water heaters are significantly more efficient than traditional electric water heaters. If you'd like to learn more, see our air source heat pump cost guide, where we explain COP in more detail.
Running costs will vary depending on:
Your electricity tariff
Your household's hot water usage
Whether you heat water during off-peak electricity periods
The temperature of the room where the unit is installed
How long does a heat pump water heater take to heat water?
Most heat pump water heaters take around two to four hours to heat a full hot water cylinder from cold, although this will vary depending on the size of the cylinder, the unit's output and the surrounding air temperature. Many models also include a boost mode, which uses a built-in immersion heater to heat water more quickly when demand is high. This uses more electricity than normal operation, but it can be useful if you've unexpectedly used more hot water than usual. Most systems can also be programmed to heat water on a timer, allowing you to take advantage of off-peak electricity tariffs and ensuring hot water is ready when you need it.

How long does it take to install a heat pump water heater?
Most heat pump water heater installations take one to two days.
If significant plumbing alterations are required or you're installing a new hot water cylinder at the same time, the work may take longer.

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Is a heat pump water heater worth it?
For many households, a heat pump water heater is a worthwhile investment, particularly if you're replacing an ageing electric immersion heater or looking to cut your hot water bills without switching to a gas boiler.
Although installation costs are higher than a standard electric water heater, ongoing running costs are significantly lower.
They're particularly well suited to homes that use large amounts of hot water or are looking to improve energy efficiency without replacing their entire central heating system.
Can a heat pump water heater replace a boiler?
No, not on its own. A heat pump water heater provides domestic hot water only. It doesn't handle space heating.
If you want to replace your boiler entirely, look at an air source heat pump or a hybrid heat pump system, which handle both heating and hot water.

Heat pump water heater cost calculator
The quickest way to estimate your project cost is to consider the size of your home, whether a new hot water cylinder is required and any additional plumbing or electrical work needed.
Job Estimate Calculator

This calculator provides a guide price only. For a more accurate estimate, compare quotes from checked heating engineers working in your area.
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Can I install a heat pump water heater myself?
No. Heat pump water heaters should be installed by a qualified heating engineer to ensure they operate safely and efficiently. Depending on the system, electrical work may also need to be completed by a qualified electrician.
Professional installation also helps protect your manufacturer's warranty and ensures the system complies with the relevant regulations.
Heat pump water heater installation checklist
Before requesting quotes:
Find a checked heating engineer near you
Installing a heat pump water heater requires careful planning to ensure it's correctly sized and suitable for your household's hot water demand.
When requesting quotes, tell installers:
The size of your home
The number of bathrooms
Whether you have an existing hot water cylinder
Any planned renovation work taking place at the same time
Comparing quotes from a selection of checked heating engineers is the easiest way to understand your options and choose the right installer.
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Heat pump water heater cost FAQs
The main downside is the higher upfront installation cost compared with a standard electric water heater. Heat pump water heaters also need enough surrounding air to operate efficiently, so they require more installation space than a traditional hot water cylinder.
Yes. An air source heat pump water heater is one of the most efficient ways to heat domestic hot water. It costs around a third as much to run as a direct electric heater and produces no direct carbon emissions if you're on a renewable electricity tariff.
No. A heat pump water heater produces domestic hot water only. To replace a gas boiler for both heating and hot water, you'd need a full air source heat pump system or a hybrid heat pump.
No. They use around a third of the electricity that a standard electric immersion heater uses for the same amount of hot water. Running costs are approximately £140 per year, compared with around £420 for a conventional electric water heater.
Yes, that's exactly what it's designed for. Unlike a full air source heat pump system, a heat pump water heater is a standalone unit that heats domestic hot water only. It doesn't connect to your radiators or underfloor heating.
An electric water heater uses a heating element to convert electricity directly into heat: one unit of electricity produces one unit of heat. A heat pump water heater moves heat from the surrounding air into the water, producing two to three units of heat for every unit of electricity used. This makes it two to three times more efficient and significantly cheaper to run.

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