Heat demand has seen a significant increase of more than 30% in favor of heat pumps
The United Kingdom is witnessing a significant surge in the adoption of heat pumps, with the Boiler Upgrade Scheme (BUS) playing a pivotal role. This government initiative offers grants of £7,500 for heat pump installations, driving a record number of installations.
As of the end of January, the heat pump grant scheme has received a total of 33,424 applications and issued more than £133 million in vouchers to customers. This represents a 39% increase compared to the same period last year, with applications soaring by 40% year on year. In fact, January 2024 saw over 2,000 applications, only exceeded by October and November of the previous year.
The increased grant of £7,500 for air source and ground source heat pumps, introduced in October 2023, has been warmly received by both the sector and consumers. Charlotte Lee, chief executive of the Heat Pump Association, stated that the interest in the Boiler Upgrade Scheme has increased, supporting the installation of over 20,200 heat pumps across England and Wales.
The UK government's £1.5 billion BUS funding for 2025–2028 is expected to support approximately 206,000 installations, providing funding certainty for homeowners. Potential future scheme expansions under consultation, including more technologies (air-to-air heat pumps, heat batteries) and alternative ownership models, aim to improve accessibility.
Heat pumps are an energy-efficient, low-carbon way of heating homes. They work by moving heat from a cool space to a warm space using a refrigeration cycle. Research suggests that heat pumps help homeowners save money on their heating bills, with a standard heat pump potentially saving a three-bedroom household in the UK up to £1,500.
While the government's heat pump grants are driving historic growth in installations and supporting the UK's green heating transition, addressing application complexity, installer shortages, and upfront cost barriers remains critical to ensure widespread and equitable access. Despite increased support, many households still struggle with upfront costs, complex application procedures, and paperwork. Studies show that 75% of UK adults are unwilling to pay more than £5,000 even after grants, limiting uptake among lower-income groups.
Claire Coutinho, the energy security secretary, stated that the government's approach to heat pumps is the right one. The UK, being the first major economy to have halved its emissions, having cut them by 50% between 1990 and 2022 while also growing the economy by 79%, is setting a strong example for other countries to follow in its pursuit of a greener future.
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