Enhanced approval process stimulates the surge in heat pump sales within the UK.
The UK heat pump industry is experiencing a significant surge, with strong growth rates and increasing market penetration in new builds. According to recent data, certified installations reached around 30,000 units in the first half of 2025, marking a 12% increase from the same period in 2024. This growth is part of an overall 37% year-on-year increase in small-scale renewables installations.
Despite this progress, the UK's heat pump installations are still far below government targets. The country aims to fit 600,000 heat pumps annually, yet current rates are approximately a tenth of that. This indicates a long runway for growth to meet decarbonization objectives.
Encouragingly, around 20% of new homes in England and Wales are now being built with heat pumps, signaling increasing market penetration in new builds.
Looking forward, the global heat pump market is projected to grow at a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. The UK, as the only European country showing positive growth in 2025, is expected to continue this upward trend, supported by strong policy frameworks and climate targets.
Recent policy changes have also made it easier for homeowners to install heat pumps. Since planning rules were updated, more homeowners can install heat pumps without waiting for local authority approval. This, along with the removal of planning permission requirements for most heat pump installations, has sped up approvals and made it easier for households to switch to cleaner heating systems.
However, while these changes have helped remove one major barrier, more needs to be done to speed up adoption and bring costs down for consumers. Campaigners and businesses are urging the government to back the next phase of reforms to keep the UK on track for its 2028 heat pump installation target.
The Boiler Upgrade Scheme figures for the first half of 2025 show a growth rate in heat pump adoption that is on track to meet the national target of 600,000 annual installations by 2028. New research shows a 54% increase in heat pump grant applications through the Boiler Upgrade Scheme in the first half of 2025 compared to the same period last year.
Shifting green levies away from electricity bills and onto fossil fuels would help make low-carbon heating more affordable. This, combined with technological advances and rising consumer demand, could propel the UK's heat pump sector to become one of the fastest-growing parts of the renewable energy economy.
In summary, the UK heat pump industry is on a robust growth trajectory with considerable room for expansion. The government's support, technological advances, and rising consumer demand are driving this growth, which is crucial for the country to meet its decarbonization objectives and create jobs in the renewable energy sector.
- The surge in the UK's heat pump industry is not just in new builds, but also a part of a larger 37% year-on-year increase in small-scale renewables installations.
- The UK government aims to fit 600,000 heat pumps annually, yet current rates are only a tenth of that, indicating a long runway for growth to meet decarbonization objectives.
- Encouragingly, around 20% of new homes in England and Wales are now being designed with heat pumps, signifying increasing market penetration in new builds.
- The global heat pump market is projected to grow at a significant rate, with the UK anticipated to maintain this growth trend, supported by strong policy frameworks and climate targets.
- Recent policy changes have made it easier for homeowners to install heat pumps, reducing waiting times for local authority approval and removing planning permission requirements for most installations.
- Despite these changes, more needs to be done to speed up heat pump adoption and bring costs down for consumers, with campaigners and businesses urging the government to back the next phase of reforms.
- The Boiler Upgrade Scheme has shown a growth rate in heat pump adoption that is on track to meet the national target of 600,000 annual installations by 2028, as seen in a 54% increase in heat pump grant applications in the first half of 2025.
- Shifting green levies away from electricity bills and onto fossil fuels could make low-carbon heating more affordable, which, combined with technological advances and rising consumer demand, could make the UK's heat pump sector a fast-growing part of the renewable energy economy.
- The growth trajectory of the UK heat pump industry is robust, with the government's support, technological advances, and rising consumer demand driving this growth. This growth is essential for the country to meet its decarbonization objectives and create jobs in the renewable energy sector, contributing to the broader fight against climate-change and aligning with environmental-science and energy policy-and-legislation agendas.
