Heat Pump Costs and Grants in Leicester
Start by checking whether you'd pay anything at all, then see typical prices, the grants available and what a heat pump costs to run compared with what heats your home now.
Last reviewed: 2 October 2026
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Could be free
Leicester City Council has over £4.5m of Warm Homes funding for low-income households in homes rated EPC D–G.
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£7,500 for everyone else
the Boiler Upgrade Scheme grant, with no income test.
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Biggest savings from storage heaters
homes switching from electric storage heaters typically save over £1,000 a year.
First: could you get it free?
If your household income is under £36,000 and your privately owned home (owner-occupied or rented) has an EPC rating of D to G, Leicester City Council's Warm Homes: Local Grant may pay for insulation, solar panels or a heat pump in full. Leicester's incomes are lower than in many cities, so it reaches more households here.
Outside the city boundary, Leicestershire County Council has paused new applications; residents of Oadby, Wigston and Birstall can register interest through the government's Warm Homes: Local Grant service.
Typical prices
| Home | Before grant | After £7,500 grant |
|---|---|---|
| Clarendon Park terrace | about £11,200 | about £3,700 |
| Knighton interwar semi | about £10,800 | about £3,300 |
| Stoneygate villa | about £16,300 | about £8,800 |
The national median for Boiler Upgrade Scheme installations in 2025/26 was £13,041. Build your own budget step by step with how to budget for a heat pump in Leicester.
The Boiler Upgrade Scheme
- £7,500 off an air source or ground source heat pump
- £9,000 if you're replacing oil or LPG, on applications from 21 July 2026 to 31 March 2027
- £2,500 for an air-to-air heat pump
- No income test and, since 28 April 2026, no EPC needed
- Your MCS-certified installer applies and deducts it from your bill
More: heat pump grants in Leicester, eligibility questions, application timeline.
Running costs compared
For a three-bedroom Leicester semi needing about 11,000 kWh of heat a year, at October 2026 prices:
| Current heating | Its yearly cost | Heat pump, standard tariff | Heat pump, heat pump tariff |
|---|---|---|---|
| Gas boiler | about £1,080 | about £905 | about £620 |
| Oil boiler | about £800–£1,100 | about £905 | about £620 |
| Storage heaters | about £2,000–£2,300 | about £905 | about £620 |
Detail in the running cost guide, the payback guide and the 15-year comparison.
Before you accept a quote
Ask about radiators, microbore pipework, cylinder space, back-yard access and electrics. Our hidden costs questions help you compare quotes fairly.
Cost questions
How much does a heat pump cost in Leicester?
Usually £10,000–£12,000 before the grant for a terrace or semi, more for a large villa. After the £7,500 grant, most households pay roughly £3,000–£4,000, and some pay nothing through the council's Warm Homes funding.
Who qualifies for a free heat pump in Leicester?
Households with an income under £36,000 in privately owned homes rated EPC D to G may qualify for Leicester City Council's Warm Homes: Local Grant.
Is the £7,500 grant available to landlords?
Yes, private landlords can claim it.
Will a heat pump save money compared with gas?
Usually, by around £180 a year on a standard tariff and £460 on a heat pump tariff for a typical semi. Savings are much larger if you're replacing storage heaters.
Can I combine the grant with free council funding?
Not for the same heat pump. If you qualify for the free route, use that.
Get a quote for your Leicester home
Tell us about your home and current heating. A local heat pump installer from our network will be in touch to arrange a survey.