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Last updated: 15 May 2025

Heat Pump Water Heater in the UK: Prices, Installation, Benefits

Heat Pump Water Heater
  • A heat pump water heater extracts heat from the air and uses it to heat water with less electricity, compared to traditional heating methods.
  • The cost of heat pump water heaters in the UK ranges from £5,075 to £8,300, depending on your chosen model, its capacity, and other factors.
  • The biggest benefit of heat pump water heaters is energy efficiency. They use much less electricity to lower bills and cut carbon emissions.

Traditional heaters are often inefficient because they rely on outdated methods that consume far more power than necessary. Heat pump water heaters work differently. They pull in heat from the air around them and move it into the water. This mechanism uses 60–75% less electricity compared to traditional water heaters.

This guide takes a look at the costs of heat pumps for water heating, how the installation works, and the benefits that make these heaters a solid option to think about.

Interested in getting a heat pump water heater? We can help you get free quotes from installers near you. Don’t waste hours searching on your own. Simply fill in our 30-second form, and we’ll do the rest. You’ll receive up to 4 free quotes with no obligations.

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What is a heat pump water heater?

A heat pump water heater is a system for heating your home's hot water using a heat pump instead of a boiler or electric heating. It pulls warmth from the air and uses that heat to warm up water for your taps, shower, bath, and appliances.

It's basically a specific kind of air source heat pumps designed for hot water. It works on the same principles as a heat pump used for home heating, but it’s all about a heat pump hot water tank instead of your radiators.

This is a very effective and environmentally friendly method for generating hot water for daily activities such as bathing, washing dishes, and doing laundry. 

Actually, heat pumps can achieve efficiency levels of 300-400%, which is quite impressive when you compare it to the average A-rated gas boiler that operates at around 92%. These efficiency levels indicate that heat pumps generate 3 to 4 times more heat for each unit of energy consumed.

How do heat pump water heaters work? 

Heat pump water heaters work like a refrigerator in reverse. They pull heat from the surrounding air and pass it into water stored in a heat pump water tank. The process goes through the following steps:

  • Heat absorption: A fan pulls in air and blows it over a coil filled with refrigerant. The refrigerant absorbs heat from the air.
  • Compression: A small pump compresses the warm refrigerant gas, which makes it much hotter.
  • Heat release: This hot gas runs through a coil around the water tank and gives off heat to the water.
  • Cycle repeats: The refrigerant cools down, becomes a liquid again, and goes back to pick up more heat. The process keeps repeating.

Here is the visual that illustrates this process:

Heat Pump Water Heater

Heat pump water heater prices

The average cost of a heat pump water heater in the UK is between £5,075 and £8,300. They are usually cheaper than air to water heat pumps or ground source heat pumps. Here’s a breakdown of typical heat pump water heater prices in the UK:

Heat pump hot water heater costs in the UK
Household size Equipment cost Installation cost Maintenance cost (annual)
1 bedroom £2,500 £2,500 £100
2 bedrooms £3,500 £4,000 £150
3 bedrooms £5,000 £5,000 £180
These costs are estimates. Get a local installer QUOTE now!

The equipment cost in the table covers the heat pump water heater unit, including the hot water tank and integrated components. Installation cost covers labour and any additional work needed, such as drilling for air ducts or wiring the system into your electrics.

In most cases, heat pump quotes bundle equipment and installation together.

These systems don’t need fuel deliveries or frequent filter changes. Maintenance usually involves an annual service check to inspect the refrigerant circuit and components, costing around £100–£200 per year, similar to a boiler service.

Some manufacturers or installers include the first year or two of free servicing. Keep in mind that skipping annual checks can void your warranty.

There are currently no grants for heat pump water heaters in the UK

Heat pump grants in the UK, like the Boiler Upgrade Scheme, fund systems that provide both heating and hot water, such as air-to-water or water the source heat pumps, but not heat pump water heaters.

The cost of heat pump water heaters will be affected by potential extras and installation costs, which vary by installer. That’s why it’s best to compare several installers in your area. 

Instead of spending days on research and comparisons on your own, why not fill out our 30-second form and let us do the rest? We’ll find you up to 4 free quotes from trusted installers in your area. Click below to get started!

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Air source heat pump water heater installation

Installing a heat pump for hot water should be carried out by a qualified heating or plumbing installer, typically MCS-certified. The process usually includes these steps:

Air source heat pump water heater installation
  • Home survey and planning: The installer will assess where the unit can be placed, available space, and how to route air ducts or refrigerant pipes. Heat pump water heaters are about the size of a tall hot water cylinder, so spaces like utility rooms, airing cupboards, or garages are ideal.
  • Positioning and airflow setup: The installer will talk through which setup would work out best for your home. The choice will be between ducted indoors or a separate outdoor heat pump unit which hooks up to the indoor hot water tank.
  • Water and electrical connections: The installer will connect a cold water feed to the heat pump water heater and the hot water outlet to your home’s system. 
  • Commissioning and testing: The system will be powered up and tested to ensure proper operation. The installer will check the heat pump, airflow, water heating, and refrigerant pressure if it's a split system.
  • Post-installation and maintenance: Maintenance is easy. Homeowners should keep the area around the unit clear for airflow and clean any air intake filters every few months. An annual professional service is also recommended to check the refrigerant circuit, compressor, fan, and backup element.

Heat pump water heater pros and cons

Heat pump water heater advantages
  • Environmentally friendly: Uses electricity to transfer heat, which is a great alternative to traditional fossil fuels.
  • Lower running costs: Uses 60–75% less electricity than electric immersion heaters and can be cheaper than gas in well-insulated homes.
  • High efficiency: Delivers 3–4 times more heat per unit of electricity used.
  • Good for solar PV: Can store excess solar energy as hot water.
  • Long lifespan: Often lasts up to 15 years with simple maintenance.
  • Quiet operation: Sound levels similar to a fridge or freezer.
Heat pump water heater disadvantages
  • High upfront cost: Purchase and installation typically range from £5,075 to £8,300 for a heat pump water heater, compared to around £1,000 to £2,500 for a standard gas or electric heater.
  • Slower water heating: Takes about 2 to 3 times longer to reheat a full tank compared to a gas or direct electric system.
  • Space requirements: Needs about 28 cubic metres of air volume around it to work efficiently.
  • Hot water only: Does not provide space heating for radiators or rooms.
  • Temperature sensitivity: Works best in moderate temperatures. Its efficiency drops in cold spaces.

Should I get a heat pump water heater 

Heat pump water heating is a strong option if you want to save energy and are ready for the upfront investment. It’s a smart choice, if environmental benefits and long-term efficiency matter to you. Because it uses electricity more efficiently than traditional systems, it produces far fewer carbon emissions.

If you’re unsure, getting a quote and site survey from a reputable installer is a good first step. Many quotes are free, and a professional can assess your home’s suitability and give you a clear cost breakdown.

Trying to find local heat pump installers on your own can take hours of unwanted hassle. Luckily, we can connect you with up to 4 local installers for free! Just fill in our 30-second form, and we’ll do the rest.

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