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
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£2,600–£8,500
what our four worked Cambridge examples cost after the grant, from a 1930s semi to a large Victorian villa.
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£9,000 for oil and LPG
the higher grant for village homes off the gas grid, on applications until 31 March 2027.
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£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 home | Before grant | You pay |
|---|---|---|
| 1930s semi, Chesterton | about £10,100 | about £2,600 |
| Artisan terrace, Romsey | about £10,500 | about £3,000 |
| Oil-heated bungalow, Great Shelford | about £11,500 | about £2,500 (with £9,000 grant) |
| Victorian villa, De Freville | about £16,000 | about £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 situation | Route |
|---|---|
| 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–G | Warm Homes: Local Grant via CERP and Action on Energy Cambridgeshire — potentially free |
| Council or housing association tenant | Neither; 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
Tell us about the property and its heating. A local heat pump installer from our network will be in touch to arrange a survey.