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Page last updated on 27th June 2025

An air source heat pump installed outside of a home.

What are heat pumps and how do heat pumps work?

Heating your home can be costly, so it’s no surprise that many households in Great Britain are on the lookout for more sustainable ways to heat their homes. Heat pumps have gained interest recently as an energy-efficient way of heating your home. They could help you save on your energy bills, especially when used alongside smart tariffs. But what is a heat pump, and how does it work?

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This page will walk you through what heat pumps are and how they work as well as answering questions like “how does a heat pump work in winter” and “what are the benefits of heat pump installations” so that you can make an informed decision on whether they are a good fit for your home.

What’s on this page?

What are heat pumps for homes and how does a home heat pump work?
How do heat pumps work in winter?
Types of heat pumps
Benefits of heat pumps
Is a heat pump right for me?
How a smart meter can help

What are heat pumps for homes and how does a home heat pump work?

According to Energy Saving Trust, who are an impartial and trusted organisation for energy efficiency, a heat pump is a low-carbon device that absorbs heat from the air or ground using electricity. This heat is compressed, which then increases its temperature. From there, the heat is released indoors, helping you keep your home warm and safe temperature.

How does a heat pump work in winter?

Even in below-freezing temperatures, heat pumps are able to extract some of the remaining heat from outside. So, you would still be able to keep your house nice and warm in the winter with a heat pump.

How do heat pumps work: types of heat pumps

If you’re wondering “how do domestic heat pumps work?”, there are three main types used in Great Britain:

Air source

Air source (or air-to-water) heat pumps are the most type of common domestic heat pumps. They extract heat from outdoor air and transfer it to the water in your indoor heating system. Air source heat pumps can heat your home via radiators or underfloor heating, as well as hot water stored in a hot water cylinder for baths and showers.

Ground source

Ground source (or ground-to-water) heat pumps extract heat from underground using pipes, which are then transferred into your home. Ground source heat pumps can also be used for generating hot water; however, they are less commonly used in homes as they usually require lots of outdoor space and higher installation costs than air source pumps.

Hybrid

Hybrid heat pumps use the same technology as a standard air source or ground source heat pumps but are combined with a traditional boiler. This system may be more suitable for customers who are not ready to completely switch from gas heating, or when the installation of a standard heat pump is impractical.

What are the benefits of heat pumps?

If you’re looking to upgrade your current heating system, there are several benefits of heat pumps to consider:

Energy Efficiency

Heat pumps are three times more energy efficient than traditional gas boilers. For every unit of electricity it uses, it produces three units of heat. With heat pumps, you can use less electricity while still enjoying the same amount of heating.

Lower carbon emissions

A heat pump generates heat by taking heat from the air or ground at low temperatures and increasing it using electricity. Heat pumps not only use cleaner, low-carbon electricity but also can save up to 70% of carbon emissions compared to a gas boiler. This makes heat pumps a sustainable alternative to heating your home.

Lower energy bills

Wondering what the cost of a heat pump is? Depending on the type, a heat pump can cost between £14,000 and £28,000 in Great Britain. Even though electricity tends to be more expensive than gas or oil, the efficiency of heat pumps could lead to lower energy bills in the long run, depending on energy tariffs and what heating system is being replaced.

Upgrading to a more energy-efficient system like heat pumps could benefit both your household bills and the environment.

Is a heat pump right for me?

As Great Britain continues to invest in alternative energy sources, heat pumps are expected to become more common. Understanding how does a central heating pump work can help you decide if it’s suitable for your household. Here are some factors to consider:

1. Installation costs

“What is the cost of a heat pump?” The installation costs for a heat pump can vary depending on the type of heat pump being installed in your home.

According to energy efficiency experts Energy Saving Trust, the installation of an air source heat pump typically costs around £14,000, whereas a ground source heat pump may exceed £28,000. Installation costs can vary depending on the size of the heat pump or your property.

If you’re interested in switching to a heat pump, you can receive a grant of £7,500 towards an air-source heat pump in England and Wales, and an interest-free loan or grant of the same amount if you’re in Scotland thanks to the Boiler Upgrade Scheme.

2. Household suitability

It is also worth considering if your home is suitable for a heat pump. Heat pumps are more efficient in well-insulated homes. If your home has draughts or poor roof insulation, you could experience substantial heat loss and waste energy. Before installing a heat pump, check whether your home needs upgrades to its insulation system.

Heat pumps need enough space for installation. Ground-source heat pumps need enough outdoor space to dig underground, while air-source pumps need space on a wall or the ground outside your home. So, it is essential that you have enough space around your house to install a heat pump.

3. Maintenance costs

As well as installation costs, heat pumps require regular maintenance to ensure they work efficiently, which could add to long-term expenses. Recommended maintenance steps include:

Cleaning or changing the filters every 3 months or as recommended by the manufacturer.
Regularly checking airflow and refrigerant levels.
Cleaning the coils of dust and debris.

While you can typically do most general cleaning and checks yourself, it is recommended to have your heat pump checked regularly by a professional technician.

Eligibility for government grants

With the UK’s goal of achieving net zero by 2050, the government is working to reduce our dependence on fossil fuels like gas and oil that we use to heat our homes. The Boiler Upgrade Scheme (BUS) in England and Wales has been established to help cover the cost of replacing traditional heating systems with heat pumps. Similarly, the Home Energy Scotland Grant and Loan Scheme provides Scottish homeowners financial support for installing cleaner heating systems like heat pumps.

These schemes can reduce installation costs and make heat pumps more accessible across the nation.

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How switching to a smart meter can help

If you’re thinking about energy efficiency in your home, why not get a smart meter? Smart meters come with an in-home display that shows you how much energy you use in pound and pence, which can help you to understand how efficient your home heating system is right now.

Smart meters also allow you to access time-of-use tariffs and energy flexibility schemes.These can make heating solutions that use electricity, like heat pumps, more affordable.

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Heat pumps are an energy-efficient alternative to traditional gas and oil boilers, and they are gradually becoming more common in Great Britain. This guide has explored how heat pumps work and highlighted some of the benefits of heat pumps that could improve energy efficiency and reduce carbon emissions in your home.

Find out more:

What's the most efficient way to heat a home?

A smart meter in-home display, on a coffee table, with a living room in the background.

Benefits of smart meters

What are time-of-use tariffs?

How do smart meters benefit Britain and the environment?