Heat Pumps - Everything You Need to Know

We are proud to be supporting the UK government #WarmAndFuzzy campaign to grow awareness of the most energy-efficient and green way to heat your home, all year round. Let’s talk about what a heat pump is, how they work, and how you can save money from installing one in your home.

Last updated: Apr 11, 2025 4 min read

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Summary

  • Heat Pumps are an Efficient and Sustainable Heating Solution – Heat pumps transfer heat rather than generating it, making them three times more energy-efficient than gas boilers. They also integrate well with solar panels, helping to reduce carbon footprints by up to 70%.
  • Cost and Installation Factors – The cost of a heat pump varies depending on the type (air-to-air, air-to-water, or ground source) and the complexity of installation. Prices start at £3,180 with government grants, but additional costs may arise if home modifications (e.g., upgraded pipes or insulation) are needed.
  • Government Grants Make Heat Pumps More Affordable – The UK government offers a £7,500 grant to help homeowners switch from boilers to heat pumps, making them a more accessible and cost-effective option for many households.

At Pod Point, we know that an eco-friendly lifestyle doesn’t just start and end with purchasing an EV home charger. There are a whole host of other things you can do to reduce your carbon footprint, whilst also decreasing your monthly energy bills.

One such thing which achieves both is installing a trusty heat pump for your home. In this guide we will dive into what exactly a heat pump is, how they work, and how you can save money on installing one in your home.

What is a Heat Pump?

A heat pump is a device that transfers heat from one place to another – from outside your home, to inside – and uses electricity to move heat rather than generating it itself like a traditional radiator. This makes it highly efficient for both heating and cooling.

heat-pump-outside-of-a-home

How do Heat Pumps Work?

A heat pump heats your home using electricity, meaning that you can also use your solar panels to power this unit – making for a much more sustainable use of energy. It works by taking heat from the air or ground, increasing it to a higher temperature and transferring it to your home to provide heating and hot water.

The heat pump unit is fixed on the outside of a property. Contrary to popular belief, the units, when properly installed and maintained, operate quietly with sound levels similar to a boiler.

For more information and advice on heat pumps, visit the Energy Saving Trust, Nesta or The MCS Foundation.

What are the benefits of installing a heat pump?

There are myriad benefits of installing a heat pump in your home, including:

  • They’re greener – installing one can lead to carbon savings of up to 70% compared to a gas boiler
  • They’re more efficient – they’re 3 times more energy efficient than traditional gas boilers
  • They’re more secure – they remove the need for any imported gas in your home, contributing to UK energy security
  • They get better over time – they’ll become greener every year as the UK electricity grid continues to decarbonise

How much do heat pumps cost

This depends on the type of heat pump you are looking at and whether the installation is standard or something a little more complicated. There are three main types of heat pump, these are:

  • Air-to-air heat pumps
  • Air-to-water heat pumps
  • Ground source heat pumps

The prices for these units can vary quite dramatically, alongside the installation costs which can rapidly rack up depending on the layout of your home. You can get an air source heat pump from our partners at EDF. Prices start at £3,180 after the Boiler Upgrade Scheme grant has been added (more on that later).

There are some factors which will contribute to the installation cost if you want to get the most out of your unit. For example, your pipes may need to be replaced to allow for higher flow rates, or if you don’t have a fully insulated home, this can make the heat pump far less efficient.

Available Heat Pump Grants

So, how can you make purchasing and installing a heat pump in your home more affordable?

We're supporting the government's new #WarmAndFuzzy campaign, which seeks to bring more awareness to the new government grant of £7,500 for anyone to upgrade their boiler to a heat pump.


These grants work the same way they do for any of the EV grants, making these fantastic bits of kit more affordable for all UK residents. To find out more about making your home smarter, greener, and more energy efficient, visit the government campaign page.

If you want to know more about heat pumps, there are also loads of stories from real customers’ experiences on the Gov website. Even houses built in the 1930s or homes which are fully off-grid are being able to benefit from the installation of a heat pump. Read their stories here.