In Peterborough the average household spends £1,000 a year on heating — 4% higher than the UK average of £960. Typical homes are 100.0 m² with 6.0 rooms. The local population is around 1,540 residents (Census 2021). Switching to an air-source heat pump could save up to £400 a year for an average home after the £7,500 Boiler Upgrade Scheme grant.


Areas covered

Ailsworth, Castor, Sutton

See more in the PE 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 Peterborough are broadly in line with the UK average.

CategoryNational cost range Adjusted for PE5 (×0.98) Net after £7,500 BUS grant
Small flats / simple installs £ 6,000 – £ 7,000 £ 5,880 – £ 6,860 from ~£ 1,000*
2–3-bed semis / moderate upgrades £ 8,000 – £ 12,000 £ 7,840 – £ 11,760 from ~£ 1,000*
Large detached / extensive work £ 13,000 – £ 18,000 £ 12,740 – £ 17,640 £ 5,240 – £ 10,140

* 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 £2,953 for a typical 3-bedroom home after the £7,500 grant.

How much can I save on heating bills?

Roughly £400 per year for the average home at current price-cap rates.

  • £1,000 Average Heating Cost UK avg £960
  • 100.0 m² Median Floor Area UK avg 84.7 m²
  • 6.0 Average Rooms UK avg 4.4

Local energy snapshot

Latest tariff window: 2025Q4

Ofgem region & price cap

Eastern · 26.53p/kWh · 48.25p/day

PV potential (south-facing)

1,007 kWh per kWp/year

Dwelling mix

House 75.5% Flat 2.3% Bungalow 22.1% Detached 55.7% Semi-detached 27.2% Terraced 17.1%

EPC certificates

298 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 ~£1,004/year
Payback: 12.2 years

With heat pump:

Solar saves ~£1,204/year
Payback: 10.1 years

  • Typical system 6 kW
  • Installation cost ~£12,200
  • Annual generation 6,043 kWh

See detailed solar data for PE5 →

Data from our sister site, Solar By Postcode UK

Compare nearby areas: PE2 (Huntingdonshire, Peterborough) · PE3 (Peterborough) · PE4 (Peterborough) · PE6 (South Kesteven, Peterborough, South Holland) · PE7 (Fenland, Huntingdonshire, Peterborough) · PE8 (Huntingdonshire, North Northamptonshire, Peterborough)

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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