Heat Pump Costs 2026: Purchase, Installation and Operation
A heat pump for a single-family home costs between €27,000 and €50,000 in 2026 – after deducting government subsidies, often only €12,000 to €22,000 remains. The exact costs depend on the heat pump type, the heat source development, and individual conditions on site.
This article breaks down all cost items: from the pure equipment costs through installation and development to ongoing operating costs. Additionally, a 20-year comparison shows how a heat pump pays off compared to gas and oil heating systems.
Purchase Costs by Heat Pump Type
Investment costs differ significantly depending on the heat source. Air-source heat pumps are the most affordable because no elaborate development of the heat source is required. Ground-source and groundwater heat pumps cost considerably more due to drilling or earthworks.
| Heat Pump Type | Equipment Costs | Total Costs incl. Installation |
|---|---|---|
| Air-to-water | €8,000–16,000 | €27,000–40,000 |
| Ground-source (horizontal collector) | €12,000–15,000 | €35,000–45,000 |
| Ground-source (borehole) | €12,000–15,000 | €40,000–50,000 |
| Water-to-water | €9,000–12,000 | €40,000–50,000 |
The price range within each type is explained by different capacity classes (6 to 16 kW), manufacturer brands, and regional price differences. In southern Germany, labour costs tend to be higher than in the north. Online providers like 1Komma5° or Thermondo often offer package prices below local specialist quotes – albeit with less individual consultation.
Installation Costs in Detail
The pure equipment costs make up only part of the total investment. The larger portion goes to installation and heat source development.
Installation costs typically consist of:
- Removal of old system: €500–1,500 (depending on complexity and disposal)
- Hydraulic connection: €1,500–3,000 (piping, pumps, valves)
- Electrical installation: €800–2,000 (supply line, fusing, Smart Grid Ready)
- Foundation work for outdoor unit: €500–1,500
- Commissioning and instruction: €300–600
For ground-source and groundwater heat pumps, development costs are added:
- Horizontal collectors: €2,000–5,000 – approximately €40 to €60/m² of laid area. Depending on heating load, 200 to 400 m² of garden space is required.
- Boreholes: €6,000–18,000 – approximately €50 to €100/metre drilled. For a single-family home, 80 to 150 metres of drilling is usually required.
- Groundwater wells: €4,000–7,000 – two drillings (extraction and injection well) at €100 to €150/metre each.
Note permit requirements: Water law permits are required for boreholes and groundwater wells. The processing fee is €200–500, processing time is 4–12 weeks.
Operating Costs: Electricity and Maintenance
The running costs of a heat pump consist of electricity costs and maintenance. Both items are significantly lower than the fuel costs of a gas or oil heating system.
Calculating Electricity Costs
Annual electricity costs can be determined with a simple formula:
Annual electricity costs = Heat demand ÷ SPF × Electricity price
A single-family home with 20,000 kWh heat demand (heating and hot water) and an air-source heat pump with a Seasonal Performance Factor (SPF) of 3.5 consumes 5,714 kWh of electricity per year. At a heat pump electricity tariff of €0.27/kWh, this results in annual costs of around €1,540.
The electricity price has a significant impact on profitability. With your own photovoltaic system, operating costs drop even further:
| Electricity Source | Price per kWh | Annual Costs (at 5,714 kWh) |
|---|---|---|
| Heat pump tariff | €0.27 | €1,543 |
| Household electricity | €0.36 | €2,057 |
| PV self-consumption | €0.10–0.15 | €571–857 |
Maintenance Costs
Heat pumps are low-maintenance. An annual inspection costs between €150 and €250 – less than gas or oil heating because no chimney sweep is required. The savings compared to a gas heating system amount to about €80/year.
Refrigerant refills are rare with modern systems. If necessary, costs are €200 to €400. Many manufacturers provide warranties of 5 to 10 years on the compressor.
Subsidies 2026: Up to 70% Grant (Germany)
The Federal Funding for Efficient Buildings (BEG) makes heat pumps economically attractive. The subsidy consists of several components:
The basic funding is 30% of eligible costs. The following bonuses are added:
- Climate speed bonus: +20% when replacing a functional fossil heating system (oil, gas, coal, night storage). The bonus drops to 15% from 2027.
- Income bonus: +30% for households with taxable annual income below €40,000.
- Efficiency bonus: +5% for heat pumps with natural refrigerant (propane, CO₂) or for ground-source and groundwater heat pumps.
The maximum subsidy is 70% of eligible costs, capped at €30,000. The highest possible grant is therefore €21,000.
Calculation Example
A family replaces their 20-year-old gas heating with an air-source heat pump for €30,000. Household income is €55,000 (no income bonus). The subsidy consists of:
- Basic funding: 30% = €9,000
- Climate speed bonus: 20% = €6,000
- Total grant: 50% = €15,000
The personal investment is reduced to €15,000.
KfW Supplementary Loan
Those wishing to finance the investment can additionally use the KfW supplementary loan (Programme 358/359). It offers up to €120,000 at favourable interest rates. Households with income below €90,000 receive a particularly low interest rate of currently under 2%.
New requirement from 2026: Outdoor air-source heat pumps must be at least 10 dB below EU Ecodesign limits to be eligible for funding (previously: 5 dB). Pay attention to sound power specifications when selecting equipment.
Total Cost Comparison Over 20 Years
The higher initial investment of a heat pump is put into perspective by lower operating costs and rising CO₂ prices for fossil fuels. A 20-year comparison shows the true profitability.
| Heating System | Purchase | Subsidy | Annual Costs | 20-Year TCO |
|---|---|---|---|---|
| Heat pump | €30,000 | –€15,000 | €1,700 | €49,000 |
| Gas heating | €11,000 | – | €2,400 | €59,000 |
| Oil heating | €12,000 | – | €2,600 | €64,000 |
The annual costs of gas heating already include the CO₂ levy, which is €55/tonne in 2025 and will continue to rise. Over 20 years, the CO₂ levy on gas amounts to an estimated €6,000. Additionally, from 2029 there is a legal obligation to gradually blend in biogas or hydrogen – with uncertain additional costs.
The heat pump saves about €10,000 compared to gas over 20 years, about €15,000 compared to oil. When combined with a photovoltaic system, operating costs drop to €800–1,000/year, further increasing the advantage.
Frequently Overlooked Ancillary Costs
These items are often missing from quotes: In addition to equipment and installation, further costs may arise that are not always included in the initial offer.
- Energy consultant for subsidy application: €400–800 (partially eligible for funding)
- Buffer tank (300–500 litres): €1,000–2,500 (not always required, but recommended with utility blocking times)
- Adaptation of heating hydraulics: €500–2,000 (hydraulic balancing according to Method B is mandatory for funding)
- Meter conversion for heat pump tariff: €100–300
- Permit for borehole drilling: €200–500
These ancillary costs add up to €2,000 to €6,000. They should be planned in advance to avoid unpleasant surprises.
Conclusion
Summary: The investment in a heat pump is between €27,000 and €50,000 in 2026 – after deducting government subsidies of up to 70%, often only €12,000 to €22,000 in personal contribution remains. With operating costs of €1,200 to €1,800 per year, the heat pump is cheaper in the long term than gas or oil. The cost advantage grows with rising CO₂ prices and decreases further when a photovoltaic system partially covers electricity demand. Those who meet the subsidy requirements and ensure efficient operation will recoup the additional costs compared to a gas heating system within 5 to 8 years.
This Series at a Glance
- Heat Pump: The Complete Guide – Overview and introduction
- The Reverse Refrigerator: How Does a Heat Pump Work? – Physical fundamentals
- The Components: Heat Exchanger, Compressor and Expansion Valve – Components in detail
- Key Figures and Sizing – COP, SPF, design
- Operating Modes: Monovalent, Bivalent and Hybrid – Operating modes explained
- Heat Pump Types and the Dream Team with Solar Systems – Types & combination with PV
- SCOP Explained: Evaluating Heat Pump Efficiency – Seasonal coefficient
- Heat Pump Costs: Purchase, Installation and Operation – You are here
You Might Also Be Interested In
Calculating Heat Pump Capacity · SCOP Explained · Heat Pump Guide
Sources
- ADAC: Heat Pump Purchase – Costs and Subsidies 2026
- Thermondo: Heat Pump Costs 2026
- 1Komma5°: All Costs for Heat Pumps 2026
- co2online: Heat Pump – Costs, Function & Subsidies
- KfW: Heating Subsidies for Private Individuals (Programme 458)
- BAFA: Federal Funding for Efficient Buildings
- BWP: BEG Funding 2026 – New Sound Requirements
Calculate Your Operating Costs Now
With our free Heat Pump Calculator, determine the seasonal performance factor and operating costs for your individual situation according to VDI 4650.