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Heat pump installations continue to rise in the UK, with 2024 shaping up to be a record-breaking year. In 2023, we had about 40,426 certified installations, which then was an all-time high. By early October this year, more than 42,000 installations had been carried out from January to September 2024.
This surge forms part of the wider UK effort toward renewable energy, targeting an installment of 600,000 heat pumps annually by 2028. That seems like a pretty tall order, but this movement is gathering momentum, with many schemes in place. The ECO4 scheme and the Boiler Upgrade Scheme are just two of many schemes – so that low-income households can access them free of cost.
In this post, we will look into current heat pump installations and government grants for them to help along such ambitious goals.
UK Reaches Nearly 260,000 Certified Heat Pump Installations
The latest statistics from the MCS reveal that nearly 260,000 certified heat pumps are now installed in UK homes. Recent uptake has been strong, with over 30,000 units installed between January and July 2024, which is up 45% on the same period in 2023, putting the UK on track for a record year in heat pump installations.
And despite the growth, there’s still work to be done. In 2022, only 55,000 heat pumps were sold in the UK; to meet the government’s climate goals, installations need to rocket to 600,000 a year by 2028.
The UK government’s Boiler Upgrade Scheme (BUS) is one of the main drivers for the increase in installations. The grant offers up to £7,500 to every household replacing gas boilers with heat pumps. Applications surged since its launch, reaching an 84% year-on-year increase by March 2024, according to Ofgem.
Ian Rippin, CEO of MCS, commented,
“It’s great to see the increasing number of consumers throughout the UK switching to heat pumps in order to heat their homes. Clearly, there’s still some way to go to reach the target of 600,000 installations per year by 2028, but with the BUS running until March of that year, consumer demand looks set to keep growing.”
2024 is Officially a Record Year for Heat Pump Installations in the UK
Already, 2024 is tracking as a record year for certified heat pump installations across the UK, beating last year’s total with three months to go. This is according to the Microgeneration Certification Scheme, the MCS, which explains that average monthly installations are 39% higher this year than in 2023. This is highly attributable to the Boiler Upgrade Scheme (BUS).
Bean Beanland, Director of Growth & External Affairs at the Heat Pump Federation said,
” Surpassing the total for 2023 alone shows just how much the BUS has encouraged homeowners. We appreciate the Department for Energy Security and Net Zero for extending BUS vouchers to the end of March 2025.”
Charlotte Lee, Chief Executive of the Heat Pump Association, added:
“It’s great to see another record-breaking year. Continued government support keeps installations on a positive trajectory.”
With continued support and the ability to extend vouchers for BUS, the future for heat pumps within the UK looks promising.
Overall UK Heat Pump Statistics
The installation rates throughout the UK have gone up, including 412,000 in the Boiler Upgrade Scheme, which is worth £450 million. This figure is relatively low compared to many countries in the EU and a long way behind the rest of Europe. Where the UK presently stands is at just 412 heat pumps per 100,000 persons.
Here’s a closer look at the numbers:
- Around 55,000 heat pumps were sold across the UK in 2022, which is pretty short of what the government had targeted for the long term.
- Setting a goal of 600,000 annual heat pump installations by 2028 is ambitious on the part of the government to meet its climate goals.
- In the UK, the market for heat pumps nearly doubled in 2021, with sales increasing by 40% from 2021 to 2022. In comparison with the same period of the previous year, more than 17,000 units were sold during the year.
- However, that is not all: much faster diffusion of heat pumps can make a considerable contribution to economic development. Nowadays the sector employs 2,000 people, but if developed accordingly, they could employ as many as 55,000 people.
Government Grants for Air Source Heat Pumps
There are a number of grants that the UK government has to incentivise the switch of homes onto air source heat pumps, but two major ones are the Boiler Upgrade Scheme and ECO4 Scheme. These grants, in their respective categories, will reduce the installation cost for households around the UK area by quite a noticeable margin.
Boiler Upgrade Scheme
In September 2023, the UK government increased the Boiler Upgrade Scheme grant from £5,000 to £7,500 to help alleviate one of the biggest barriers – upfront cost – for those households in England looking to install air-source heat pumps. There’s a similar scheme in Scotland, which also provides a £7,500 grant but adds an interest-free loan of up to £7,500, making the price even more compelling.
This divergence in grant support has proved effective: Scotland’s installation rate per head is running at a much higher rate. Applications for the BUS have poured in for 2024. In August this year, there were 2,890 – more than double the corresponding number for 2023.
The Secretary of State for Energy Security and Net Zero has authorised Ofgem to over-allocate BUS vouchers adding £50 million, in addition to the existing budget of £200 million, to ensure that grant accessibility is available.
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ECO4 Scheme: Heat Pump Grants with Free Solar Panels
Government assistance on the free installation of heat pumps is also possible under the ECO4 Scheme, which also includes the installation of free solar panels along with heat pumps. This happens to be a low-income household scheme appropriately designed to enhance energy efficiency but also combines the installation of heat pumps with other measures that will contribute to energy savings for households to reduce both costs and carbon emissions.
The Bottom Line
Generous government grants, such as the Boiler Upgrade Scheme and ECO4 Scheme, make air source heat pumps more viable financially. Installing heating in your home could be more efficient, greatly reducing your carbon footprint while saving you money on energy bills with little to no upfront cost when using incentives like these.
Frequently Asked Questions
The UK is growing in terms of the heat pump market. But currently, it is reported that the UK has only 412 heat pumps per 100,000 people. And that clearly shows that more needs to be done regarding heat pumps. At the same time, the heat pump market almost doubled in 2021, while in 2022, it recorded about 55,000 heat pumps being sold.
We can say, to date, the UK achieves a landmark of 250,000 installations according to the MCS for heat pumps. That is something quite a big step in renewable heating and carbon emission cuts.
This includes a target for heat pump installations to reach 600,000 in the UK every year by 2028. The ECO4 scheme is also trying to help government achieve this goal.
Some of the most popular in the UK from leading brands include the Samsung Eco Heating System, LG THERMA V, and Viessmann Vitocal; these are actually popular because of their all-around best performance, plus long warranty provision.
