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Glossary

What is an Air Source Heat Pump?

By Home Energy Quotes · Updated March 2026

A heat pump that extracts heat from outdoor air and transfers it inside your home

An air source heat pump (ASHP) works like a fridge in reverse – it extracts heat from outdoor air even at temperatures as low as -20°C. ASHPs are cheaper to install than ground source (£7,000-£15,000) and qualify for the Boiler Upgrade Scheme's £7,500 grant in England and Wales (£9,000 for homes heated by oil or LPG with no mains gas, until 31 March 2027).

Where it wins

  • Lower install cost than ground source (£7,000-£15,000)
  • No garden excavation needed
  • Qualifies for the Boiler Upgrade Scheme grant (£7,500 in England and Wales)
  • Can provide heating and hot water year-round

Where it struggles

  • Less efficient than ground source in very cold weather
  • Outdoor unit produces some noise
  • Requires adequate outdoor wall or ground space
  • Best paired with underfloor heating or oversized radiators

How it works

01

Fan draws outside air over an evaporator coil containing refrigerant

02

Refrigerant absorbs heat and evaporates to gas

03

Compressor increases gas pressure and temperature

04

Hot gas passes through condenser releasing heat to home's water circuit

Air Source Heat Pump: common questions

What is an Air Source Heat Pump?
A heat pump that extracts heat from outdoor air and transfers it inside your home
How does an Air Source Heat Pump work?
An air source heat pump (ASHP) works like a fridge in reverse – it extracts heat from outdoor air even at temperatures as low as -20°C. ASHPs are cheaper to install than ground source (£7,000-£15,000) and qualify for the Boiler Upgrade Scheme’s £7,500 grant in England and Wales (£9,000 for homes heated by oil or LPG with no mains gas, until 31 March 2027).

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