In Monmouthshire, Forest of Dean the average household spends £1,020 a year on heating — 6% higher than the UK average of £960. Typical homes are 85.0 m² with 4.6 rooms. The local population is around 23,550 residents (Census 2021). Switching to an air-source heat pump could save up to £408 a year for an average home after the £7,500 Boiler Upgrade Scheme grant.


Areas covered

Chepstow, Sedbury, Beachley

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 Monmouthshire, Forest of Dean are around 10% higher than the UK average.

CategoryNational cost range Adjusted for NP16 (×1.10) Net after £7,500 BUS grant
Small flats / simple installs £ 6,000 – £ 7,000 £ 6,600 – £ 7,700 from ~£ 1,000*
2–3-bed semis / moderate upgrades £ 8,000 – £ 12,000 £ 8,800 – £ 13,200 £ 1,300 – £ 5,700
Large detached / extensive work £ 13,000 – £ 18,000 £ 14,300 – £ 19,800 £ 6,800 – £ 12,300

* 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 £4,233 for a typical 3-bedroom home after the £7,500 grant.

How much can I save on heating bills?

Roughly £408 per year for the average home at current price-cap rates.

  • £1,020 Average Heating Cost UK avg £960
  • 85.0 m² Median Floor Area UK avg 84.7 m²
  • 4.6 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)

996 kWh per kWp/year

Dwelling mix

House 77.3% Flat 12% Bungalow 10.1% Detached 40.7% Semi-detached 26.5% Terraced 31.9%

EPC certificates

6,175 on record

Ready to get started?

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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 ~£834/year
Payback: 12.2 years

With heat pump:

Solar saves ~£1,001/year
Payback: 10.2 years

  • Typical system 5 kW
  • Installation cost ~£10,200
  • Annual generation 4,982 kWh

See detailed solar data for NP16 →

Data from our sister site, Solar By Postcode UK

Compare nearby areas: NP12 (Caerphilly) · NP13 (Blaenau Gwent, Caerphilly) · NP15 (Monmouthshire) · NP18 (Newport, Torfaen, Monmouthshire) · NP19 (Newport) · NP20 (Newport)

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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