Heat pumps are a highly efficient alternative to fossil fuels and electric heating systems. Heat pumps provide up to 4-6 units of heat for every unit of electricity. However, choosing the best heat pump for your home requirements is the key.
The installation process can be a bit complex depending on the available space for the heat pump installer to play with. It also depends on the type of system whether it’s air or ground. Air source heat pumps cost less and are more effective in moderately cold weather. However, for baltic weather, ground source heat pumps work better to heat water.
What is a Heat Pump?
A heat pump is an energy-efficient heating system that provides heating and cooling for buildings. Heat pumps transfer heat from outside air to indoors using their refrigeration cycle which functions similarly to refrigerators and air-conditioners.
There are two major types of heat pumps, air source heat pumps and ground source heat pumps. But before we discuss its types in detail, let’s explore how heat pumps function.
How Does a Heat Pump Work?
Using the principles of thermodynamics, heat pumps transfer heat from the outdoor environment to the indoor. This cycle is performed with the function of four major components, compressor, condenser, expansion valve, and evaporator.
Below is the detailed functionality of all these parts in cold and hot weather:
- Compressor: this component works as the heart of the heat pump and compresses the refrigerant to raise its temperature and pressure. For cooling, the functionality of the compressor remains the same.
- Condenser: the compressed gas moves to the condenser, releasing the heat into the home and condensing it to liquid again. The same process is reversed in the cooling mode where hot air is released into the outdoor environment which is then condensed to evaporators.
- Expansion Valve: the hot air passes through the expansion valve, and reduces its pressure before going to the evaporator. This repeats the cycle all over again.
- Evaporator: for cooling, the evaporator absorbs hot air from indoors and causes it to vaporise. While for cooling, it absorbs heat from outside and changes the liquid into a low-pressure gas.
This is how the heat pump system works and provides renewable heat to your home.
Types of Heat Pumps
There are two major types of heat pumps and one less common type which is gaining popularity now:
1. Air Source Heat Pumps
Air source heat pumps extract heat from the air, compress it to raise the temperature, and provide heating and hot water for the central heating system and taps. Air source heat pumps are further divided into two main types:
- Air-to-Air Heat Pump: Takes heat from the air and transfers it to indoor air through a radiator to provide heating for the central heating system.
- Air-to-Water Heat Pump: This heat pump extracts heat from the outside air and distributes it directly into the water of underfloor ductwork.
These heat pumps are widely used, energy efficient, and low in price compared to other heat pump types.
2. Ground Source Heat Pumps (Geothermal)
Geothermal heat pumps, also known as ground source heat pumps are installed under the ground and extract heat from the ground. This heat pump produces more sustainable energy due to the constant temperature under the ground. So if you if in an area of extreme weather conditions and are thinking of getting a heat pump, you should consider geothermal heat pumps as your priority.
3. Water Source Heat Pumps
Water source heat pumps extract heat heat from the nearest water source and provide heating to the indoors. This might not be a suitable option for cold weather areas.
How Much Does a Heat Pump Cost?
There are different costs for different heat pump types, below are the details.
- Air Source Heat Pumps’ installation and system costs range from £6500 to £11500. However, some specific heat pumps cost ranges from £3500 to £6000.
- The ground source heat pumps’ typical installation costs can go up to £49,000 or above depending on the complexity of the task and installation requirements.
Type | Cost Range (USD) | Cost Range (GBP) |
Air Source Heat Pump | $7,120 – $36,000 | £6,500 – £11,500 |
Geothermal Heat Pump | $6,000 – $20,000 | Up to £49,000 |
Are there Grants for Heat Pumps Installation?
There are various government grants available for heat pump installations. Here is an overview of a few available ones.
- Renewable Heat Incentive (RHI): This incentive provides financial support to install renewable energy heating systems including heat pumps.
- Energy Company Obligation (ECO4): The ECO4 scheme provides fully funded grants for the installation of air source heat pumps. including air-to-air and air-to-water heat pumps.
- Home Upgrade Scheme 2 (HUG2): HUG2 offers partial funding to install a heat pump to make UK households more energy-efficient and save on energy costs.
- Boiler Upgrade Scheme (BUS): The boiler upgrade scheme offers funds of up to £7500 for the installation of ground source heat pumps.
- Local Authority Grants: All of the above grants have specific eligibility criteria, you need to meet these requirements to get a heat pump in the UK.
The eligibility for these grants varies for unique project circumstances.
Conclusion
In 2025, installing an air source heat pump for your heating requirements can be challenging due to higher upfront costs. Unless you avail of government grants to set off or reduce upfront installation costs. If you are considering installing a heat pump as a way to heat your home, installing a ground-source heat pump is a great option.
If you want your heat pump would provide both heating and cooling for your home, you should think of a new air source heat pump installation. This guide explores everything about heat pumps, their types, costs, and grants.
