How much does a heat pump cost in Teesside? (2026)
An air source heat pump costs £8,000 to £14,000 installed in Teesside in 2026, and the £7,500 Boiler Upgrade Scheme grant comes off that, leaving most households between £1,500 and £6,500. Running costs beat mains gas when the system is designed for a 35 to 45 degree flow temperature, and lose to it when it is not.
The net figure most Teesside homeowners pay
Headline prices mislead because the grant is fixed rather than proportional. A tidy 1960s semi in Normanby with modern radiators might be £8,500 installed, so £1,000 net after the £7,500 Boiler Upgrade Scheme payment. A big four-bed at Wynyard needing a 12kW unit, a 250 litre cylinder and six new emitters might be £13,500, so £6,000 net. Same grant, very different share of the job. That is why the honest answer to "what will mine cost" is a survey, and why the fixed grant favours simpler properties.
Running costs against gas, calculated not asserted
Take a Teesside semi with a calculated annual space and water heat demand of 12,000 kWh. On a gas boiler at roughly 85 percent seasonal efficiency, that needs about 14,100 kWh of gas. At 2026 unit rates around 6.5p per kWh that is roughly £915 a year plus the gas standing charge. Put the same house on a heat pump achieving a seasonal efficiency of 3.6 and it needs about 3,330 kWh of electricity: at 26p that is £865, and it removes the gas standing charge entirely. Push the design to a lazy 55 degree flow and the seasonal figure drops nearer 2.5, so 4,800 kWh, roughly £1,250, and now the heat pump has lost. The unit is the same in all three sums. The design is what changed.
Time-of-use tariffs move it further. Heat pump specific tariffs and off-peak windows can shave 15 to 30 percent off that electricity figure for households willing to shift hot water and pre-heating into cheap hours, which is realistic when the system has a cylinder and weather compensation.
What genuinely moves your quote
- Emitter work: £250 to £450 per radiator, and the number needed is set by your design temperature, not by fashion.
- Pipework era: 15mm microbore in a 1970s house can force partial re-piping, which is labour and floor lifting.
- Cylinder position: straight swap in an airing cupboard versus a loft installation with new primaries.
- Electrical work: a consumer unit upgrade or supply check on older terraces.
- Fabric condition: a loft at 100mm rather than 270mm raises heat demand, unit size and running cost together.
- Siting: boundary distances, condensate routing and acoustic requirements in tight terraced yards.
How to compare two heat pump quotes properly
Ask both for the same four things: the room-by-room heat loss figures, the design flow temperature, the emitter schedule, and the predicted annual electricity consumption in kWh with the assumptions listed. A quote that supplies all four can be checked. A quote that supplies a unit brand and a total cannot, and in this trade the cheaper of two such quotes is very often the one that skipped the radiators. The heat loss survey page covers what those calculations involve, and the grant guide explains the £7,500 in detail.
2026 context
Installed prices have softened slightly since 2024 as more Teesside firms gained MCS certification and competition improved, while the £7,500 grant has held. Electricity remains around four times the unit price of gas, so efficiency is everything: every degree you can take off the design flow temperature is money back every winter for the life of the system.
| Job | Typical price | Grant position |
|---|---|---|
| Air source installation, 5–7kW semi | £8,000–£11,000 | £7,500 BUS eligible |
| Air source installation, 8–12kW detached | £11,000–£14,000 | £7,500 BUS eligible |
| Hybrid system with existing boiler | £7,000–£12,000 | case by case |
| Heat pump replacement or upgrade | £6,000–£10,000 | not eligible |
| Radiator upsize, per emitter | £250–£450 | within install scope |
| Unvented cylinder, 200–250 litre | £1,200–£2,000 | within install scope |
| Annual servicing | £150–£300 | n/a |
| Heat loss survey and design | £150–£300 | deducted from install |