Thinking about upgrading to a heat pump hot water cylinder, but not sure what it will cost? You're not alone. The good news is that prices are fairly predictable and there's government support that can make everything much more affordable. 

Let's break it down, without the technical jargon or the headache. 

The Cost of the Cylinder Itself

Ont he lower end, a basic air source heat pump hot water cylinder usually costs around £700 to £900. These are smaller models that suit flats or homes with lower hot water demand. 

Mid range cylinder, which are more common in family homes, typically sit between £1,000 and £1,400. These often offer better insulation, faster heat recover, and longer warranties. 

At the premium end, larger or higher specification cylinders can cost up to £1,800 or more. These are designed for bigger households, higher usage, or homeowners who want top efficiency and durability. 

Information gathered from U and I Renewables 'Air Source Heat Pump Costs UK 2025: Complete Installation & Running Cost Breakdown' 

Average Installation Costs

Installation costs vary depending on how straightforward the job is. If you are replacing an existing cylinder with a heat pump compatible one, installation usually costs between £800 to £1,500. 

If extra work is needed, such as upgrading pipework, adding controls, or improving insulation, the price can increase. When installation a full air source heat pump system alongside a new cylinder, total installation costs across the whole system often fall between £8,000 and £18,000 depending on your home. 

Government Grants That Can Help

Here's the part everyone likes. In England and Wales, the Boiler Upgrade Scheme offers up to £7,500 towards the cost of installating an air source heat pump. This grant is applied by your installer and comes straight off the final bill, which can make a huge difference. 

While the grant does not cover the cost of the cylinder on its own, it does help offset the overall system cost, including installation. Some manufacturer and installers also offer occasional cashback deals, which are worth asking about.

It is worth checking the Government website here for more information. 

Is It Worth It? 

While the upfront cost can seem high, a heat pump hot water cylinder is designed to work efficiently for many years. Combined with lower running costs, reduced carbon emissions, and available grants, it can be a smart long-term upgrade. 

Plus, once it's installed, you get reliable hot water and a system that's future-ready. Not a bad trade-off at all!