Heat pump cost in Shropshire 2026: prices after the grant

An air source heat pump outside a brick house

Installed prices before the grant

The most reliable figures come from the government's Boiler Upgrade Scheme statistics, which record the price of every grant-funded installation from its MCS certificate. They include equipment, labour and VAT, and are before the grant is taken off.

England and Wales, April to June 2026	Air source	Ground source
Lower quarter of jobs	£11,128	£18,136
Median job	£12,908	£27,232
Upper quarter of jobs	£15,627	£42,110
Typical size	8 kW	10.5 kW

Source: DESNZ Boiler Upgrade Scheme statistics, August 2026. The air source median has stayed close to £13,000 for over a year.

Bigger homes need bigger heat pumps

The size of heat pump you need depends on how much heat your house loses, which your installer works out in a room-by-room survey. As a guide, from the same government data:

Air source size	Usually suits	Median installed cost (2025/26)
4 to 6 kW	Flats and small, well insulated homes	£11,494
6 to 8 kW	A well insulated two or three bedroom home	£12,164
8 to 10 kW	A typical three bedroom house	£12,686
10 to 12 kW	A four bedroom house	£13,943
12 to 16 kW	Larger or older, draughtier homes	£15,365 to £15,496

"Usually suits" is a rule of thumb from installer guidance, not part of the government data. Your survey decides the size.

What the grant and VAT take off

Boiler Upgrade Scheme: £7,500 off an air source or ground source heat pump. Until March 2027 there is an extra £1,500, making £9,000, if your home is heated by oil or LPG and has no mains gas connection. Eligibility criteria apply.
How it works: your MCS certified installer applies on your behalf and takes the grant off your quote. You do not receive the money yourself.
0% VAT: installing a heat pump in your home carries no VAT until 31 March 2027, then 5%. The prices above already reflect this.

Air source, typical range	Before grant	After £7,500	After £9,000 (oil or LPG)
Most homes	£11,000 to £16,000	£3,500 to £8,000	£2,000 to £6,500
Median	about £13,000	about £5,400	about £3,900

Our estimate: the government's cost range minus the grant.

Extra work that can add to the price

Most quotes already include a new hot water cylinder, and the government figures above often include radiator changes. Depending on your house, you may also see:

Larger radiators in some rooms: about £100 to £300 each
A new hot water cylinder, if not included: about £1,200 to £2,300 fitted
A new fuse box (consumer unit): about £500 to £1,200
Loft or cavity wall insulation beforehand: about £400 to £1,800
Boreholes for ground source: about £4,000 to £6,000 each

Running costs against oil, LPG and gas

Using Ofgem's price cap for October to December 2026 (electricity 26.32p and gas 7.97p per kWh), and heating oil at a range of prices, this is our estimate of the cost to produce 12,000 kWh of heat a year, roughly a three bedroom house. Unit costs only, without standing charges.

Heating	Cost per year (our estimate)
Heat pump, well designed install	about £900
Heat pump, cautious estimate	about £1,130
Mains gas boiler	about £1,060
Oil boiler, oil at 80p a litre	about £1,030
Oil boiler, oil at 97p a litre	about £1,250
Oil boiler, oil at 120p a litre	about £1,550

Assumptions: boilers 90% efficient, heat pump efficiency (SCOP) of 3.5 for a good install and 2.8 for a cautious one, heating oil 10.35 kWh per litre. For LPG, Marches Energy Advice, quoting the Energy Saving Trust, puts the typical saving from switching an LPG boiler to a heat pump at about £270 a year, and up to £700 from an older system.

Heat pumps in Shropshire

Much of rural Shropshire is off the gas grid and heated by oil or LPG, which is exactly where heat pumps save the most and where the higher £9,000 grant applies. By June 2026, 987 heat pumps had been installed with the grant in the Shropshire Council area and 198 in Telford and Wrekin.

On a low income? Shropshire Council runs Sustainable Warmth Shropshire for eligible households. You apply to the council directly. See also our heat pumps page.

Common questions

How much is a heat pump after the grant?

Based on the government's figures for real installations, most air source heat pumps cost about £3,500 to £8,000 after the £7,500 Boiler Upgrade Scheme grant, or about £2,000 to £6,500 after the £9,000 grant for oil and LPG homes. Your price depends on the size of the house and how much work is needed.

Who gets the Boiler Upgrade Scheme grant?

Property owners in England and Wales who are replacing a fossil fuel heating system, with an MCS certified installer. It is not means tested. The installer applies for you and takes the grant off your quote. Eligibility criteria apply: see the official guidance.

Is the £9,000 grant still available?

The extra £1,500, which makes £9,000, is available until March 2027 for homes heated by oil or LPG that have no mains gas connection. After that the grant is expected to return to £7,500 for air source and ground source heat pumps.

Is there VAT on a heat pump?

No. Installing a heat pump in your home carries 0% VAT until 31 March 2027. From 1 April 2027 it goes back to 5%.

Is a heat pump cheaper to run than oil?

At current prices, usually yes, and the saving grows when heating oil is expensive. Against mains gas it is roughly break-even on a standard tariff. A good installation that is designed properly for your house makes the biggest difference.

How much does a heat pump cost in Shropshire in 2026?