The latest figures released by the UK Department of Energy Security and Net Zero (DESNZ) on 6 March 2025 showed a 52% increase in installations compared to 2023, with experts putting the rise down to the government’s decision to increase the Boiler Retrofit Scheme (BUS) grant to £7,500.
The Boiler Retrofit Scheme (BUS) supports the decarbonisation of homes and small to medium-sized non-domestic buildings in England and Wales. The scheme provides up-front capital grants of up to £7,500 to encourage property owners to replace their existing fossil fuel heating with more efficient low-carbon heating systems, including heat pumps and biomass boilers.
The heat pumps, which run on electricity rather than gas, are a key part of the UK’s plan to reduce carbon emissions from home heating, which accounts for 14% of the country’s total emissions. However, the heat pump industry warns that high energy costs remain a major barrier to widespread adoption. Despite the progress, sales of heat pumps – both subsidised and unsubsidised – remained below 100,000 last year, well below the government’s target of 600,000 annual installations by 2028. Industry leaders and climate consultants argue that energy prices must fall for heat pumps to become a mainstream choice.
They are calling on politicians to shift charges from electricity bills to gas bills, making heat pumps a more attractive financial option. Meanwhile, upcoming planning reforms requiring heat pumps to be installed in new homes are expected to boost the market further