Things to know
A proper heat loss survey, room by room and not an estimate from the boiler size alone, is what a correctly sized heat pump depends on. It deserves its own priced line, not treatment as a free add-on to the quote. Undersizing a heat pump based on guesswork is one of the most common causes of a cold-house complaint months after installation, and a documented survey protects you from that blame.
MCS accreditation is what makes a customer eligible for the Boiler Upgrade Scheme grant. Stating this clearly on the quote is a real financial detail for the customer, not merely a credential. Be explicit about whether the price shown is before or after the grant is applied, since grant approval timing doesn't always line up neatly with when you'd like to start the job.
Heat pumps run at lower flow temperatures than a gas boiler, which often means existing radiators are undersized for the new system and need upsizing to heat the room properly. This is a genuinely easy detail to leave out of an early conversation, and a hard one to explain after the event. Flag it as a likely additional cost during the survey stage, not as a surprise on the final invoice.
State the system type, air source or ground source, and expected running temperature on the quote. These affect both the customer's day-to-day experience and how the system compares to the boiler they're replacing. A customer who expects their heat pump to behave identically to a gas boiler is more likely to call you back with a complaint that isn't actually a fault.
Typical heat pump installer line items and UK prices
Indicative ranges, excluding VAT. Rates vary by region (London and the South East run higher) and by job size.
| Item | Unit | Typical range |
|---|---|---|
| Air source heat pump (8–10kW), supplied + installedBefore the Boiler Upgrade Scheme grant. | per system | £9,000–£14,000 |
| Hot water cylinder (heat pump compatible, 200–250L) | per unit | £1,200–£2,200 |
| Radiator upgrade | per radiator | £250–£500 |
| Heat loss survey + designOften deducted if the install goes ahead. | per property | £150–£400 |
| Pipework upgrade (microbore replacement) | per job | £500–£2,500 |
| Electrical supply + isolator | per job | £300–£700 |
| Annual heat pump service | per visit | £120–£250 |
Common heat pump installer jobs and how to price them
- Gas boiler to ASHP replacements
- Fixed price including design, unit, cylinder, radiator and pipe upgrades, commissioning and the BUS deduction.
- Oil and LPG replacements
- As above plus decommissioning and tank removal.
- New-build installs
- Per plot, with underfloor heating design.
- Annual servicing
- Fixed price per visit, needed for many manufacturer warranties.
Regulations and certificates to reference
- MCS certification and heat loss calculation — installs must be MCS-certified for the Boiler Upgrade Scheme and must be designed from a room-by-room heat loss calculation. Attach the design summary.
- Boiler Upgrade Scheme (England and Wales) — a grant (currently £7,500 for air and ground source heat pumps) claimed by the installer and deducted from the customer’s price. Show it clearly on the quote.
- Permitted development — in England, since 29 May 2025, most air source heat pumps don't need planning permission if they meet the permitted development conditions: a unit of up to 1.5 m³, installed to the MCS 020(a) noise standard (there's no longer a 1 m boundary rule), and up to two units on a detached house. Listed buildings, scheduled monuments and some protected areas still need consent, and Scotland, Wales and Northern Ireland have their own rules.
- F-Gas certification — split systems need refrigerant handled by F-Gas certified engineers; sealed monoblock units typically do not need refrigerant work on site.
Payment terms heat pump installers commonly use
- Deposit on acceptance (often 10–25%), balance on commissioning, net of the BUS grant.
- If the grant is refused, the quote should state what happens to the price.
Read more: Invoice payment terms explained · Payment methods to offer clients
VAT and CIS for heat pump installers
VAT
Heat pumps installed in homes are zero-rated (0%) as energy-saving materials until 31 March 2027 in Great Britain.
Radiators and pipework fitted as part of a heat pump heating system are covered too: HMRC treats the whole installation as one zero-rated job, because the heat pump is the main element.
Construction Industry Scheme (CIS)
Heat pump installation is heating installation work, within CIS when subcontracted on construction projects.
General guidance, not tax advice — check your position with HMRC or an accountant.
Read more: Do I need to charge VAT on my invoices? · What must an invoice include? (UK legal requirements)
What this template includes
- Heat loss survey priced as its own line, not assumed
- MCS certification referenced (required for grant eligibility)
- Radiator upsizing flagged where needed
- System type and running-temperature notes included
- PDF download or shareable tracked link
Full guide
How to Start a Heat Pump Installation Business as a Sole Trader
Frequently asked questions
As a deduction. The installer applies for the voucher and claims the grant, and the customer pays the balance. Show the full price, the grant, and the net figure.
Heat pumps run efficiently at lower flow temperatures, so some radiators need to be larger to heat the room. The heat loss calculation shows which ones.
Most domestic installs fall under permitted development if they meet the size, siting and noise conditions. Listed buildings and some locations need permission. The conditions changed in 2025, so check the current rules.
Domestic heat pump installs in Great Britain are zero-rated until 31 March 2027 under the energy-saving materials relief.
A room-by-room survey is what correctly sizes the heat pump. Skipping it and estimating from the old boiler size is a common cause of a heat pump that never quite heats the house properly.
Possibly — heat pumps run at lower flow temperatures, so some existing radiators may need upsizing to heat rooms effectively. This should be flagged at survey stage, not discovered after installation.
It is required for Boiler Upgrade Scheme grant eligibility. The quote should state clearly whether the price shown is before or after that grant is applied.
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