Subsidies support record UK heat pump installation figures

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Heat pump installations continue to break records in the United Kingdom, according to the latest figures from certification body MCS.

July 2024 was the fifth month in a row with more than 4,500 certified heat pump installations and the third highest month on record. It maintains the trend toward a record-breaking year for annual installations. In total, there have now been more than 250,000 certified heat pump installations in the United Kingdom since records began.

Charlotte Lee, chief executive of the Heat Pump Association, told pv magazine that the UK government’s Boiler Upgrade Scheme (BUS) and Energy Company Obligation (ECO) have played a “large part” in driving the heat pump installation growth seen in 2024. Consumers can access capital grants to support the installation of heat pumps and biomass boilers through BUS, while the ECO scheme puts an obligation on energy suppliers to support measures that reduce the cost of heating in low-income households, which can include installing or upgrading a heating system.

Heat pump installations supported by BUS grew 36% year on year in the first quarter of 2024 and ECO-supported installations were up 141%, according to the trade association. An average air-source heat pump installation cost GBP 12,700 ($16,800) in July 2024, according to MCS data. However, the boiler upgrade scheme covers GBP 7,500 of the cost when installing an air-source heat pump.

“The first six months of 2024 have seen real growth for the UK's heat pump market and is fantastic news for the sector, with our sales data showing a 40% increase in heat pump sales in the first six months of 2024 compared to the same period last year,” said Lee.

To support further heat pump deployment, Lee said the government “must tackle the high ratio between electricity and gas prices to ensure the price of electricity is reduced, making the lowest carbon heat the lowest cost heat.”

“Other enablers to heat pump growth include the implementation of the Future Homes and Building Standard and the swift introduction of proposed changes to current Permitted Development Rights,” said Lee.

The Heat Pump Association chief executive added that continuing supportive policies such as BUS and ECO are “vital to providing greater clarity and confidence to the sector, crucially installers, consumers and investors.”

The latest MCS figures also reveal battery storage installations are continuing to enjoy strong year-on-year growth. MCS has now recorded more than 15,000 certified battery storage installations, with more than 10,000 coming in 2024 alone.

Ian Rippin, CEO at MCS, said that as batteries are often combined with solar installations, “the extraordinary rise in the number of certified battery storage installations shows that more UK homeowners are switching on to the benefits of renewable energy.”

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