ASHP Installer Margin Calculator 2025/26
Work out net margin on an air source heat pump (ASHP) installation in the UK. Enter unit cost, hot water cylinder, ancillaries, labour and the £7,500 BUS grant to calculate customer price before and after grant, and your installer margin. Updated for the 2025/26 Boiler Upgrade Scheme.
Key Inputs
- ASHP unit cost (trade price: £3,000–£6,000 depending on output)
- Hot water cylinder cost (unvented cylinder: £500–£1,200)
- Ancillaries: pipework, valves, insulation, controls (£300–£800)
- Radiator upgrades or underfloor heating additions (if applicable)
- EPC pre-survey cost (required for BUS application)
- Labour days at day rate (£/day)
- BUS grant value applied (£7,500 for ASHP in 2025/26)
What You'll Get
- Total material cost
- Total labour cost
- Total job cost before grant
- Customer retail price before grant
- Customer net price after £7,500 BUS grant
- Installer gross margin percentage
Important Notes — 2025/26 Rates & Caveats
The Boiler Upgrade Scheme (BUS) grant for air source heat pumps is £7,500 in 2025/26, paid to the MCS-certified installer who reduces the customer price accordingly. The Clean Heat Market Mechanism (CHMM), introduced in 2025, requires boiler manufacturers to meet heat pump sales quotas or pay a government levy — this is driving manufacturers to offer incentives to installers who cross-sell heat pumps. ASHP installers must hold MCS certification and a relevant F-gas qualification. A valid EPC for the property (EPC rating D or above recommended) is required for BUS applications.
Frequently Asked Questions
What is the BUS grant for heat pumps in 2025/26?
The Boiler Upgrade Scheme (BUS) provides £7,500 towards the installed cost of an eligible air source heat pump in England and Wales in 2025/26. The grant is paid directly to the MCS-certified installer, who deducts it from the customer's invoice. The customer effectively pays the net price after grant. Ground source heat pumps also receive £7,500 under BUS. The scheme is administered by Ofgem and requires the property to have a valid EPC with no outstanding recommendations for loft or cavity wall insulation.
Does the BUS grant go to the customer or the installer?
The BUS grant is paid to the MCS-certified installer, not the customer. The installer submits a voucher application to Ofgem before installation, receives a voucher, completes the installation, and then redeems the voucher through Ofgem. The customer pays the installer the net price (total price minus £7,500). This means the installer effectively fronts the grant and recoups it from Ofgem, which typically takes 4–8 weeks. Cash flow management is important for high-volume heat pump installers.
What is the Clean Heat Market Mechanism?
The Clean Heat Market Mechanism (CHMM) is a UK government policy introduced in 2025 that requires manufacturers and importers of gas boilers to ensure a minimum proportion of their products sold in the UK are heat pumps. Manufacturers who miss their target must pay a levy per boiler sold above their quota. This creates a commercial incentive for boiler manufacturers (e.g. Vaillant, Worcester Bosch, Baxi) to promote heat pump sales actively, including through installer training and incentive programmes, benefiting MCS-certified heat pump installers.
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