Understanding the Costs and Incentives for Air Source Heat Pumps

For many Dorset homeowners, the decision to upgrade a heating system often comes down to two main factors: the initial price tag and the long-term running costs. As energy prices fluctuate and environmental concerns grow, air source heat pumps (ASHPs) have moved from being a niche “eco-friendly” option to a mainstream financial strategy.

But what does it actually cost to get started, and what help is available to lower that investment? At 2Brothers, we believe in complete transparency. We want you to understand exactly where your money goes and how government schemes can help you get it back.

Let’s break down the costs, the savings, and the grants available for UK homeowners in 2025.

The True Cost of Installation

One of the most common misconceptions about heat pumps is that they are prohibitively expensive. While complex, whole-house systems can represent a significant investment, modern air-to-air heat pump technology (often referred to as air conditioning) is surprisingly affordable.

At 2Brothers, our installation packages start from £1,045 + VAT (subject to site survey). This entry-level price typically covers a high-efficiency single-room system, perfect for living areas, home offices, or bedrooms where you spend the most time.

What Influences the Price?

Every home is unique. Several factors will determine the final quote for your property:

• System Type: Are you looking for a simple single-split system (one indoor unit) or a multi-split system to heat multiple rooms?
• Property Size & Insulation: Larger, less insulated spaces require more powerful units to maintain efficiency.
• Complexity of Installation: Simple back-to-back installations are cheaper than projects requiring extensive pipework or electrical upgrades.
• Brand Choice: We partner with premium manufacturers like Mitsubishi Electric and Mitsubishi Heavy Industries to ensure longevity and performance.

Government Incentives and Rebates

The UK government is actively encouraging the shift away from fossil fuels. To support this, there are financial incentives available to help homeowners make the switch to low-carbon heating technologies.

The Boiler Upgrade Scheme (BUS)

One of the primary schemes currently available is the Boiler Upgrade Scheme. This initiative offers upfront grants to help cover the cost of replacing fossil fuel heating systems (like oil, gas, or electric resistance heating) with a heat pump.

While this scheme focuses heavily on air-to-water heat pumps (which replace traditional boilers and radiators), it is crucial to check the latest eligibility criteria and apply for the Boiler Upgrade Scheme on the official GOV.UK website.

Long-Term Financial and Environmental Benefits

Beyond the upfront incentives, the real value of an air source heat pump lies in its daily operation.

Slash Your Energy Bills

Traditional electric heaters operate at a 1:1 ratio—1kW of electricity gives you 1kW of heat. In contrast, a modern air source heat pump can deliver 3 to 4kW of heat for every 1kW of electricity used. This efficiency rating of 300-400% means you are buying far less energy to achieve the same level of comfort.

For a typical household in Dorset, switching from old electric storage heaters or oil boilers to a high-efficiency heat pump can result in significant annual savings, protecting you from volatile energy markets.

Future-Proofing Your Home

As regulations surrounding energy efficiency tighten—especially for landlords needing to meet EPC ratings—installing a heat pump is a smart way to future-proof your asset. A renewable heating system not only lowers your carbon footprint but can also increase the desirability and value of your property.