Heat Pump Costs and Grants in Cambridge

A summary of what heat pumps cost in Cambridge and South Cambridgeshire, which grants apply, how the city's colder winters affect running costs, and what landlords should know.

Last reviewed: 2 October 2026

  • £2,600–£8,500

    what our four worked Cambridge examples cost after the grant, from a 1930s semi to a large Victorian villa.

  • £9,000 for oil and LPG

    the higher grant for village homes off the gas grid, on applications until 31 March 2027.

  • £8.5m for free upgrades

    the Warm Homes funding secured by the Cambridgeshire Energy Retrofit Partnership for low-income households.

Prices for common Cambridge homes

Example homeBefore grantYou pay
1930s semi, Chestertonabout £10,100about £2,600
Artisan terrace, Romseyabout £10,500about £3,000
Oil-heated bungalow, Great Shelfordabout £11,500about £2,500 (with £9,000 grant)
Victorian villa, De Frevilleabout £16,000about £8,500

Each example is broken down item by item in Cambridge heat pump prices. Nationally, the median Boiler Upgrade Scheme installation in 2025/26 cost £13,041.

Which grant applies to you?

Your situationRoute
Owner-occupier or private landlord, gas heating£7,500 Boiler Upgrade Scheme
Oil or LPG heating (village edges)£9,000 Boiler Upgrade Scheme, until 31 March 2027
Low income, privately owned home rated EPC D–GWarm Homes: Local Grant via CERP and Action on Energy Cambridgeshire — potentially free
Council or housing association tenantNeither; social housing is funded separately

Since 28 April 2026 the Boiler Upgrade Scheme no longer needs an EPC, which helps owners of solid-walled gault-brick terraces. VAT on installation is 0% until March 2027. Details: the grant in six points, who can claim, how the application works.

Running costs in a frosty city

Cambridge sees around 52 air-frost days a year at the NIAB weather station, more than most English cities, so good design matters. For a typical semi needing about 12,000 kWh of heat a year, at October 2026 prices (electricity about 26p/kWh, gas about 8p/kWh):

  • gas boiler including standing charge: about £1,170 a year
  • heat pump on a standard tariff: about £1,010
  • heat pump on a heat pump tariff: about £700

See running costs through a Cambridge winter and heat pump vs gas boiler.

Landlords

Private landlords can claim the grant on the same terms as owner-occupiers, and with much of Cambridge's housing let, many do. If bills are included in the rent, the running-cost saving is yours. Our payback scenarios include a bills-included rental near Mill Road.

Reading a quote

A Cambridge quote should show the design temperature, flow temperature, a room-by-room radiator list, the cylinder spec (with hard-water protection for the city's chalk supply) and any planning consent. Our quote checklist goes through it line by line.

Questions about cost

What does a heat pump cost in Cambridge?

Typically £10,000–£13,000 before the grant for most homes, more for large villas. After the £7,500 grant, most households pay £2,500–£6,500.

Do Cambridge's cold winters make heat pumps expensive to run?

They make good design more important. A well-sized system with suitable radiators still usually costs less to run than gas, especially on a heat pump tariff.

Can landlords claim the grant?

Yes, private landlords are eligible on the same terms as homeowners.

Where do I find free retrofit help?

Action on Energy Cambridgeshire is the councils' route into the Warm Homes: Local Grant, delivered by the Cambridgeshire Energy Retrofit Partnership.

Is a listed building eligible for the grant?

Yes. You'll need listed building consent for the outdoor unit and external work, but the grant is the same.

Request a quote for your Cambridge home

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