Installation cost and Scottish funding

Around £12,000 before funding—not necessarily £12,000 from your savings

Energy Saving Trust gives around £12,000 as a typical air source heat pump installation cost. Your quote can be lower or higher depending on your home and the heating-system changes needed. This is a guide price, not a fixed FLO quote.

How a £7,500 grant could change that

For an eligible installation costing £12,000, an approved £7,500 Home Energy Scotland grant would leave £4,500 to cover:

£12,000Example eligible installation cost before funding
− £7,500Example approved grant—you do not repay this
£4,500Remaining cost—pay yourself or apply for an optional loan

You may be able to cover that £4,500 balance with Home Energy Scotland’s optional interest-free loan. The loan must be repaid; credit and affordability checks and an administration fee apply. Both the grant and loan depend on eligibility, approval and available funding.

Check Funding & Get a Quote

Seven things that change the price

Heat loss and required output

A larger or leakier building needs more heat. A room-by-room heat-loss calculation should drive the design rather than floor area alone.

Radiators and underfloor heating

Some existing emitters may work; others may need to be resized for lower flow temperatures. The answer should be room specific.

Hot-water cylinder

Air-to-water heat pumps normally need stored hot water. Cylinder size, location and pipe routes affect materials and labour.

Pipework and hydraulic changes

Flow rates, pipe sizes, zones, buffers and separation from old equipment can add complexity.

Outdoor-unit position

Access, base construction, drainage, airflow, noise and pipe distance all matter.

Electrical work

The supply, consumer unit, cable route and network notification or application need to be considered.

Removal and making good

Decommissioning an oil tank, boiler or old cylinder and restoring disturbed areas may be separate parts of the scope.

What should your heat-pump quote include?

  • The proposed heat pump make, model and output.
  • The design conditions and room-by-room heat-loss basis.
  • Radiator, cylinder, controls, pipework and electrical changes.
  • Outdoor positioning, access and practical assumptions.
  • Estimated performance and expected flow temperatures.
  • Commissioning, handover, warranties and aftercare.
  • The price before funding, with exclusions stated clearly.
  • The remaining cost after any approved grant, and how deposits and staged payments work.

Can I finance the remaining cost?

Potentially, yes. Alongside its heat pump grant of up to £7,500, Home Energy Scotland offers an optional interest-free loan of up to £7,500 towards further eligible installation costs. You can apply for only the amount you need: in the example above, that would be £4,500.

  • The grant is not repaid. The loan is borrowing that you repay over an agreed term, subject to credit and affordability checks.
  • The loan administration fee is 1.5%, capped at £150. For a £4,500 loan, that is £67.50, included in your repayments. Grant-only applications have no administration fee.
  • The scheme is for eligible owner-occupiers of existing Scottish homes used as their main residence. Funding is subject to approval and availability.
  • You must receive a written funding offer before installation work starts. An application alone does not reserve funding.

Qualifying rural and island homes may receive an additional £1,500 grant, taking the grant up to £9,000. Home Energy Scotland confirms eligibility, including any rural uplift.

Funding is provided through Home Energy Scotland, not by FLO. We can provide your installation quote and help you understand the steps. Agree deposit and payment arrangements before booking: this example is not a promise of a zero-upfront-cost installation.

See more about Scottish heat pump funding, or ask FLO for a quote with funding in mind.

Independent sources

Scheme rules and guidance can change. Check these sources before making a financial or planning decision.