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Green Homes Grant - Extended until 31 March 2022
Last updated: 22 January 2021

Air Source Heat Pumps: A Top Green Home Solution

Air Source Heat Pump

An air source heat pump can provide efficient heating and cooling solutions for your home in any climate. This type of heat pump is a green home solution converts solar energy stored in the air into energy, providing heat for domestic purposes.

Domestic air source heat pumps are affordable and are becoming increasingly popular among individual households.

In fact, of all heat pumps sold in the UK, air source heat pumps account for 87%. Going forward, air source heat pumps will play a key role in the UK's goal of reaching Net Zero by 2050.

The total cost of installing an air source heat pump ranges from £8,000 to £18,000. These costs depend on many factors, including:

  • The size of your home
  • How well insulated your home is
  • The brand of the pump
  • The pump size
  • The performance/efficiency of the pump

Interested in purchasing an air source heat pump? GreenMatch provides you with up to four quotes from reliable suppliers. This service is free and without any obligation. Compare heat pumps today by filling in the form at the top of the page.

How Do Air Source Heat Pump Systems Work?

Air source heat pumps work much like refrigerators. Heat from the air is gathered and absorbed into a loop with refrigerant fluid. After the energy, or rather the heat is extracted from the air it passes through a compressor. The compressor does as it sounds; it compresses, which results in a higher temperature. 

Another important part of the air source heat pump is the heat exchanger, which transfers the heat through piping to the needed locations such as radiators, underfloor heating systems, hot water circuits, or air conditioners in the house.

There are two types of heat pumps:

  • air to air heat pumps
  • air to water heat pumps

Air to air heat pumps generate energy by moving air from one place to another. This process requires electricity. During the warmer seasons, heat gets extracted from the inside, and this warm air will then be released outside, leaving the inside of the house cooler. In this case, the heat pump functions as an air conditioner.

During the cooler seasons, the pump takes air from the outside. The pump presses the air together, a process that heats the air. The warmer air will then be released inside the house through an air conditioner unit, warming up the home.

Air to air heat pumps only provide space heating. However, when combined with other heating systems, for example, a boiler, the produced heat can be used to heat water.

The interactive graphic below illustrates how the process works. You can click on each point to read about the steps in more detail:

1 2 3 4 5 6 7 8
Air Source Heat Pump

Air to water heat pumps, on the other hand, can provide both space and water heating, making it the more versatile heat pump type. For this reason, it is also the more commonly used type of air source heat pump in the UK.

Both types work more or less the same manner, however, with air to water heat pumps the heat gets transported to the wet central heating system, such as radiators, underfloor heating, or showers.

It works based on hydronic technology and functions like a boiler when it is supposed to provide a home with heat and hot water.

The interactive graphic below illustrates how the process works. You can click on each point to read about the steps in more detail:

1 2 3 4 5 6
Air Source Heat Pump

The Pros and Cons of an Air Source Heat Pump

Investing in an air source heat pump can be beneficial, as they have many advantages, such as:


  • Reasonable capital costs
  • Easy installation process for both air to air and air to water systems
  • Low carbon heating system
  • High efficiency. With an average COP of 3.2, air source heat pumps perform well without wasting energy
  • Low running costs, meaning lower energy bills
  • Eligibility for the Renewable Heat Incentive scheme


  • Condensed air can produce water that can freeze at low temperatures, interrupting the heat flow
  • The outdoor fan can be somewhat noisy
  • Lower maximum tap water temperature than with traditional heating systems

Many of the downsides above can be prevented by having professional installers to plan and install the air source heat pump system. Keep in mind that you will need to take proper care of your heat pump to ensure that the efficiency stays up to par and the running costs remain low.

There are several more notable benefits and drawbacks, which you can read about in our dedicated guide on the pros and cons of air source heat pumps.

What Are Air Source Heat Pump Prices?

Air source heat pump prices range between £8,000 to 18,000. This wide range in price is due to the fact that there are different types of air source heat pumps (air to air and air to water), many brands, and varying sizes, and performance strengths that all determine the price.

When you invest in a heat pump system, in this case, an air source heat pump, you have to take into account installation and possible home altering costs.

It is difficult to predict the installation and running costs of an air source heat pump. These will vary depending on many factors, like the size of your home, how well insulated it is, and what room temperature you are aiming to achieve.

An air source heat pump is both efficient and affordable. It is slightly more expensive than a condensing boiler, however, when it comes to heat pump types, air source heat pumps are less expensive than ground source heat pumps. The starting price of an air source heat pump is 50% cheaper than that of a ground source heat pump.

What Is the Installation Cost?

The installation cost of air source heat pumps should generally be in the range of £8,000-£18,000 mentioned previously. This depends on your existing heating system, though.

As air source heat pumps are easy to install, they are very common in the retrofit market. That being said, if you need to also have new radiators or pipework done before you can install an air source heat pump, then the installation costs will rise.

Currently, there is a grant available to homeowners and landlords in England that can reduce installation costs by two-thirds: the Green Homes Grant.

What Are the Running Costs?

The cost to run an air source heat pump depends on a number of factors:

  • the system size
  • the system's efficiency (SCOP)
  • the outside temperature
  • your energy expenditure 
  • how well insulated your home is
  • RHI tariffs

When it comes to the system itself, the size and efficiency will naturally play a huge part. The bigger the size, the more energy it will generate, and the more expensive it will be to run. The efficiency of the system is equally as important to consider. To read more about this, you can read our analysis of how much you can save depending on efficiency.

The outside temperature also plays a role. Though as air source heat pumps are capable of running in air as cold as -20°C, they generally start to function slightly worse in temperatures lower than 0°C. Fortunately, the UK winters typically do not drop far below 0°C.

Moreover, your home's insulation and your own energy needs will also impact the running costs. To begin with, your home should be well-insulated to get the most out of your heating system (out of any heating system, as a matter of fact). Additionally, how much heating you require will also determine how much you spend on your bills.

Finally, you can lower the running costs of your air source heat pump by taking advantage of the Renewable Heat Incentive.

Financing a Heat Pump System with a Grant

If you decide to buy an air source heat pump, you are eligible to receive some government support in the form of a grant. The specific grant you can apply for is the Renewable Heat Incentive (RHI). Keep in mind that in order to be eligible for this grant, the air source heat pump has to be an air-to-water heat pump.

This incentive was established April 9th, 2014 to help the UK government meet environmental goals and targets through the support of domestic consumers of renewable energy sources. If you are a homeowner, landlord, or home-builder you can apply for this incentive.

The following table breaks down the RHI tariff rates per heating system.

RHI Earnings
Heating System RHI Tariff
Air source heat pumps  10.85 p/kWh
Biomass boilers 6.97 p/kWh
Ground source heat pumps 21.16 p/kWh
Solar thermal 21.36 p/kWh

More in-depth information can be found on the Ofgem website.

Another government incentive is the 5% VAT reduction on energy-saving products, which includes air source heat pumps. You need to be over 60 years of age and a recipient of income of disability benefits to qualify.

In addition, the Green Homes Grant can reduce the installation cost of your air source heat pump by two-thirds.

Green Homes Grant Extended Until 2022

The Green Homes Grant, which provides homeowners and landlords with £5,000 - £10,000 vouchers for energy-saving renovations, has been extended for a year until 31 March 2022.

Air source heat pumps are included under the primary measures of the grant scheme.

Read our guide about the Green Homes Grant for full details about how to apply.

Note: the Green Homes Grant is only available in England, and works can continue in all tiers under the current restrictions.


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How Much Can You Save With an ASHP?

If you purchase an air source heat pump you will be able to save energy as well as money. This is due to the efficiency levels at which air source heat pumps produce energy. You could save up to £1,335.

High Efficiency Means Saving Money

The efficiency of an air source heat pump is measured by the Coefficient of Performance (COP). This refers to the maximum efficiency with which the heat pump can run. Most air source heat pumps have a COP between 2 to 4, but in some cases, it can be as high as 5.

The COP refers to how many kilowatts of heat 1 kilowatt of electricity can produce. An air source heat pump with a COP of 4 will produce 4 kilowatts of heat. Meaning the heat pump will provide you with four times more heat than if you would heat your home using electricity.

Air _source _heat _pump _COP_SCOP

If the temperatures outside of a house are around 7°C, the average air source heat pump will have a COP of 3.2. In most parts of the UK, the average temperature is between 5 - 8°C. This means an air source heat pump will generally perform quite well in the UK.

In order to save money, the efficiency of your green home solution is very important. Efficiency is one of the aspects that determines the running costs. Two other key players when it comes to running costs are:

  • The amount of heat needed in your home.
  • The temperature your source of energy can generate.

A Scenario: Running Costs Savings

In our example, we will look at how much energy is generally needed and used, and how much a household consisting of four people will spend on running costs. We will look at a detached house that is 200m2.

A house that is 200 m2 will most likely need around 11,000 kWh for heat and 4,000 kWh for hot water.

The running costs of an air source heat pump for a three bedroom house are approximately £750. For a detached house, like the one from our main example, the running costs would be around £975. Now compare this to your current energy bill.

The average running cost of a condensing boiler in a 200 m2 house, with an efficiency of 85%, is £1005. For a boiler it is £1615.

An average home in the UK is around 76 m2. Meaning that for most houses the running costs will most likely be lower than the ones from our example.

Types of Air Source Heat Pump Systems

 How _do _ashp _work

Air source heat pumps (also known as ASHPs) use a natural source of heat - air - to produce energy. They absorb warmth from the outside air and convert it into heat.

Depending on whether you purchased an air-to-air or air-to-water heat pump, the heat that is produced can be used for an underfloor heating system, radiators, warm air convectors and to heat water. An air source heat pump can also be used as an air conditioner.

There are two main types of air source heat pump systems:

  • Air to water heat pump: this type of air source heat pump distributes heat via a wet central heating system. This type of system is able to heat your space while also providing hot water.
  • Air to air heat pump: this type of air source heat pump system produces heat by using fans to circulate outside air into your home. With this type of heat pump, only space heating is possible, unless combined with another heating system, such as a boiler or similar system.

Air source heat pumps are said to be more efficient in warmer climates, however, this does not mean that they are not cost-effective in colder climates. An air source heat pump, just as a thermodynamic water heating system, can get heat from the air even when the temperature outside drops down to around minus 20°C.

Air source heat pumps have some impact on the environment, as they require electricity in order to run. However, they extract heat from the air, which is constantly being renewed naturally. This makes them an environmentally friendly and green solution nevertheless.

If you would like to have an even lower impact on the environment and lower running costs, you should think about combining your air source heat pump with a solar panel system to generate the electricity for the pump to run.

Factors to Consider about Air Source Heat Pumps

Before you take the step of buying an air source heat pump, it would be smart to consider your current situation and the possibility of implementing changes.

The first factor you should think about is space. Air source heat pumps need some space for the outdoor module, which is placed either on a wall or directly on the ground. What is important, is that the system needs some space around it in order to create a good flow of air. Therefore, placing an air source heat pump near a sunny wall is preferable.

Air Source Heat Pump Installation

Secondly, you need to consider if your home is well insulated. Heat pumps will function better when a home is well insulated. It is important to add proper insulation and draught-proofing to the home to reach the highest level of efficiency for your air source heat pump.

Next, you need to think about the current energy source and the fuel it uses. If your home currently uses electricity or coal to fuel your heating system, an air source heat pump will pay for itself much quicker.

You might also want to think about the heating systems that are part of your home. Purchasing an air to water heat pump can be more beneficial if it's used with an underfloor heating system or warm air heating, because of the lower water temperatures needed.

Finally, you should think about options to complement the air source heat system. Combining an air source heat pump system with other building work could reduce the costs of installing the system. 

Combining an air source heat pump with other green home solutions will also greatly benefit you. A secondary system will be able to function as a backup or boost the performance of the heat pump. Although not necessary, you can combine an air source heat pump with a condensing boiler.

As mentioned before, it is also a good idea to combine an air source heat pump with a solar panel system. The heat pump will run on the electricity provided by the solar panels.

Find the Right Air Source Heat Pump Installer

If you would like to compare heat pumps and receive free air source heat pump quotes, Greenmatch can help you get what you need. Just fill in the form at the top of this page and you will receive up to four quotes from our trusted suppliers. This service is completely free and non-binding.

Get Your Quotes Now! It only takes 1 minute
Written by Attila Tamas Vekony UX Manager Attila is the UX Manager at GreenMatch. He holds a degree in international business with four years of coordination experience in marketing, user experience, and content creation. Attila likes to write about solar energy, heating technology, environmental protection, and sustainability. His and his team's articles appeared in well-known sites such as The Conversation, Earth911, EcoWatch, and Gizmodo.
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