Quick answer: In 2026, an air source heat pump in Grimsby or Cleethorpes typically costs £8,000–£14,000 installed before grants. After the £7,500 Boiler Upgrade Scheme grant, most NE Lincolnshire homes pay a net £2,500–£6,500, with 0% VAT applying until 31 March 2027.
What a heat pump costs in NE Lincolnshire after the grant
Heat pump pricing depends on your property's heat demand, the radiators or underfloor heating already in place, and the size of the unit needed. The headline saving for Grimsby and Cleethorpes homeowners is the government's £7,500 Boiler Upgrade Scheme, which an MCS-certified installer applies for on your behalf and deducts from the bill before you pay. On top of that, supply-and-install of a domestic heat pump carries 0% VAT until 31 March 2027, after which it reverts to 5% (HMRC VAT Notice 708/6 — note many rivals wrongly state 31 January 2027).
The table below shows indicative installed costs for common property types across NE Lincolnshire. Figures are typical ranges, not quotes — your air source heat pumps Grimsby survey will confirm the exact heat-loss calculation and unit size.
| Property type | Typical heat pump size | Installed cost (0% VAT) | After £7,500 BUS grant |
|---|---|---|---|
| 2-bed terrace / semi | 5 kW | £8,000–£10,000 | £500–£2,500 |
| 3-bed semi-detached | 6–8 kW | £9,500–£12,000 | £2,000–£4,500 |
| 4-bed detached | 8–12 kW | £11,000–£14,000 | £3,500–£6,500 |
| Larger / poorly insulated home | 12–16 kW | £13,000–£17,000+ | £5,500–£9,500+ |
To qualify for the grant you need a valid EPC (with no outstanding insulation recommendations in most cases) and you must be replacing a fossil-fuel system — gas, oil or LPG. The £7,500 figure is the current grant amount in England and Wales; we do not assume future changes. Batteries are not BUS-eligible, but if you pair a heat pump with solar PV, the solar element also benefits from 0% VAT.
Running costs: heat pump vs gas, oil and LPG
The real saving in Grimsby and Cleethorpes comes after install, and it depends heavily on what you heat with today. A heat pump delivers roughly 3–4 units of heat for every unit of electricity (a seasonal coefficient of performance, or SCOP, of 3.0–4.0). That efficiency is what lets a heat pump compete with — and often beat — mains gas, and comfortably beat oil and LPG.
| Heating fuel | Indicative unit cost | Efficiency | Relative running cost |
|---|---|---|---|
| Mains gas boiler | ~6.5p/kWh | ~90% | Baseline |
| Air source heat pump | ~27p/kWh (electricity) | SCOP ~3.5 | Similar to / below gas |
| Heating oil (kerosene) | ~8–10p/kWh equiv. | ~90% | Higher than heat pump |
| LPG | ~11–13p/kWh equiv. | ~90% | Much higher than heat pump |
Indicative — based on Ofgem price-cap-era electricity and gov.uk fuel data, verified June 2026; your actual unit rates and tariff will vary. Because a heat pump runs on electricity at roughly 27p/kWh but produces around 3.5 kWh of heat per kWh used, its effective heat cost is around 7–8p/kWh — broadly level with gas and well below oil and LPG.
Cutting running costs further with a heat-pump tariff
Specialist time-of-use tariffs can sharpen the maths considerably. Suppliers including Octopus, OVO and others offer heat-pump or off-peak electricity rates that let the system pre-warm your home cheaply overnight. Pairing a heat pump with solar PV and a battery pushes self-generated electricity into the heat pump, lowering the effective unit cost still further.
Why off-gas Grimsby & Cleethorpes homes save the most
NE Lincolnshire has a notable share of off-gas-grid properties — rural plots around Humberston, Waltham, Holton le Clay and the surrounding villages, plus older coastal housing in Cleethorpes that still runs on oil or LPG. These homes see the largest savings from switching, because they're replacing expensive oil or LPG rather than cheap mains gas.
- Off oil: typical detached homes spend £1,800–£2,800/yr on oil heating; a heat pump can cut that meaningfully, especially on a good tariff.
- Off LPG: LPG is one of the most expensive heating fuels in the UK — heat pump running costs are frequently 40–60% lower.
- No more deliveries: no oil or gas top-ups, no tank, and no exposure to volatile fuel-delivery pricing.
For off-gas homes, combining the £7,500 grant with the elimination of high oil/LPG bills can deliver a payback measured in single-digit years — a stronger case than for most mains-gas homes.
Worked example: 3-bed semi in Cleethorpes (off mains gas)
- 7 kW air source heat pump, installed cost £10,500 (0% VAT)
- Less £7,500 Boiler Upgrade Scheme grant
- Net cost to homeowner: £3,000
- Estimated annual running cost on a heat-pump tariff: comparable to the gas boiler it replaces, with lower maintenance and no boiler-replacement bill in 10 years' time
Getting an accurate quote
Every figure above is a guide. The only way to know your number is an MCS heat-loss survey, which sets the unit size, radiator changes and grant eligibility. YEERS is a Hull-based, MCS-certified installer covering Grimsby, Cleethorpes and the wider Lincolnshire coast, and we handle the £7,500 Boiler Upgrade Scheme paperwork for you and deduct it up front. All our work carries a 10-year workmanship warranty. To get a property-specific cost for air source heat pumps Grimsby and Cleethorpes, request a quote through our online form and we'll arrange a survey.
Frequently asked questions
How much does a heat pump cost in Cleethorpes after the £7,500 grant?
Most Cleethorpes homes pay a net £2,500–£6,500 after the Boiler Upgrade Scheme grant. A typical 3-bed semi at around £10,500 installed drops to roughly £3,000 once the £7,500 grant is deducted by your MCS-certified installer. Larger or poorly insulated homes cost more; small terraces less.
Are heat pumps cheaper to run than gas in Grimsby?
They can be comparable to, or cheaper than, mains gas. A heat pump produces around 3.5 units of heat per unit of electricity, giving an effective heat cost of roughly 7–8p/kWh — broadly level with gas at around 6.5p/kWh, and much cheaper than oil or LPG. A heat-pump tariff improves the savings further.
Do I pay VAT on a heat pump in 2026?
No. Domestic heat pump supply-and-install carries 0% VAT until 31 March 2027, after which it reverts to 5% (HMRC VAT Notice 708/6). Many providers wrongly quote 31 January 2027 — the correct date is 31 March 2027, so installs completed before then are zero-rated.
Will an off-gas home in NE Lincolnshire save more with a heat pump?
Yes. Off-gas homes around Grimsby and Cleethorpes running on oil or LPG see the biggest savings, because they replace expensive fuel rather than cheap mains gas. Switching off LPG can cut heating running costs by roughly 40–60%, and there are no more fuel deliveries or tank costs.
Who applies for the Boiler Upgrade Scheme grant?
Your MCS-certified installer applies for the £7,500 Boiler Upgrade Scheme grant on your behalf and deducts it from your bill before you pay. You need a valid EPC and must be replacing a fossil-fuel system (gas, oil or LPG). The scheme covers air source and ground source heat pumps in England and Wales.
Last updated June 2026 · YEERS — MCS-certified renewable installers, Hull & Yorkshire.
