In Caerphilly the average household spends £1,154 a year on heating — 20% higher than the UK average of £960. Typical homes are 85.0 m² with 4.5 rooms. The local population is around 4,640 residents (Census 2021). Switching to an air-source heat pump could save up to £462 a year for an average home after the £7,500 Boiler Upgrade Scheme grant.


Areas covered

New Tredegar

See more in the NP area hub.

Typical air-source heat-pump installation costs range from about £6,000 at the low end to roughly £18,000 at the high end. Most homes fall somewhere between £7,000 and £15,000. These prices are before the £7,500 BUS grant (in addition, qualifying rural and island homes in Scotland may receive a further £1,500 uplift under the Home Energy Scotland scheme, for up to £9 000 of grant funding).

Installation costs in Caerphilly are broadly in line with the UK average.

CategoryNational cost range Adjusted for NP24 (×0.96) Net after £7,500 BUS grant
Small flats / simple installs £ 6,000 – £ 7,000 £ 5,760 – £ 6,720 from ~£ 1,000*
2–3-bed semis / moderate upgrades £ 8,000 – £ 12,000 £ 7,680 – £ 11,520 from ~£ 1,000*
Large detached / extensive work £ 13,000 – £ 18,000 £ 12,480 – £ 17,280 £ 4,980 – £ 9,780

* Minimum net costs rarely fall below £1,000 after grant, since most installs incur at least minor extra work.

Lower end
  • Minimal groundwork or plumbing modification required
  • Well-insulated homes that only need a compact ASHP unit
Mid end
  • Moderate radiator or underfloor-heating upgrades
  • Typical pump size (8–12 kW)
Upper end
  • Large detached houses or older properties needing major pipework
  • Extensive insulation or radiator replacement
  • Multi-zone controls and bespoke system design

Heat pump FAQs

How much does a heat pump cost here?

About £2,740 for a typical 3-bedroom home after the £7,500 grant.

How much can I save on heating bills?

Roughly £462 per year for the average home at current price-cap rates.

  • £1,154 Average Heating Cost UK avg £960
  • 85.0 m² Median Floor Area UK avg 84.7 m²
  • 4.5 Average Rooms UK avg 4.4

Local energy snapshot

Latest tariff window: 2025Q4

Ofgem region & price cap

South Wales · 26.83p/kWh · 51.69p/day

PV potential (south-facing)

881 kWh per kWp/year

Dwelling mix

House 83.8% Flat 9.3% Bungalow 6.5% Detached 4.4% Semi-detached 9.4% Terraced 86.1%

EPC certificates

1,392 on record

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Also in Your Area: Solar Panel Potential

Heat pumps increase electricity usage. Solar panels can offset your higher bills.

Without heat pump:

Solar saves ~£589/year
Payback: 13.8 years

With heat pump:

Solar saves ~£708/year
Payback: 11.4 years

  • Typical system 4 kW
  • Installation cost ~£8,100
  • Annual generation 3,523 kWh

See detailed solar data for NP24 →

Data from our sister site, Solar By Postcode UK

Compare nearby areas: NP20 (Newport) · NP22 (Blaenau Gwent, Caerphilly) · NP23 (Blaenau Gwent) · NP25 (Herefordshire, County of, Monmouthshire, Forest of Dean) · NP26 (Newport, Monmouthshire) · NP44 (Torfaen, Monmouthshire)

Heat Pump Installation & Ownership Guide

Timeline, planning rules, maintenance and what to expect
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Official Heat Pump Resources & Data Sources

BUS, Ofgem, planning rules, MCS and the data behind the numbers
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