HEAT PUMPS
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Overcoming challenges in the heat pump sector for 2025
Charlotte Lee, Heat Pump Association (HPA), chief executive looks ahead to 2025, addressing challenges for the sector and how the sector plana to tackle them
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n 2024, the UK heat pump sector saw record growth, with a 63% increase in hydronic heat pump sales and a 15% rise in training qualifications. The HPA’s data shows nearly 100,000 hydronic heat pumps were sold, and over 9,000 individuals completed a recognised heat pump training qualification. However, despite this progress, more work is needed to meet carbon reduction targets, enhance energy security, and lower consumer bills. The Government’s goal of 600,000 heat pump installations per year by 2028 and the Climate Change Committee’s recommendation of heat pumps in 52% of households by 2040 remain significant challenges. Looking ahead, the sector offers many opportunities for growth and innovation, though there are several obstacles to overcome.
Cost
The upfront cost of a heat pump system is supported by grants such as the Boiler Upgrade Scheme (BUS) and Home Energy Scotland Grant and Loan.
The BUS, launched in April 2022, offers a £7,500
grant for air-to-water and ground-source heat pumps to homeowners and small businesses in
Left: Charlotte Lee, Heat Pump Association (HPA), chief executive
Clarity of policy
England and Wales. With over 38,000 installations supported, the scheme received an additional £30 million in October 2024, and £25 million more in January 2025. However, running costs remain a challenge. The high electricity-to-gas price ratio in the UK (currently around 4, one of the highest in Europe) is a key factor. High electricity prices are partly due to “green levies,” which account for 16% of electricity bills but only 5% of gas bills. Despite heat pumps being significantly more efficient than fossil fuel heating systems, they may not lead to savings due to high electricity costs. Some energy suppliers offer special tariffs to reduce electricity costs for heat pumps, but the HPA is urging the Government to address the electricity price disparity and lower costs for consumers.
The Labour Government has made promising announcements including increasing the BUS budget, the intent to remove limiting planning rules for heat pumps and committing to a clean power future by 2030. However, more clarity is needed in policy to support heat pump deployment. The Government’s consultation on the Future Homes and Building Standards (FHBS), is particularly significant. If implemented, it would require the majority of new build homes to be heated by heat pumps or low carbon heat networks, creating further opportunities for UK manufacturing and installations jobs. To drive growth and investment in the sector, a clear heat decarbonisation plan is essential. The HPA is calling for the swift publication of the Future Homes and Buildings Standards to provide a solid foundation for demand and ensure long-term success in decarbonisation.
Workforce
Over 9000 individuals successfully completing a recognised heat pump training qualification last year, a 15% increase from 2023. With more than 260 training sites UK wide, HPA members have the capacity to deliver over 30,000 recognised heat pump training places annually. However, a gap exists between the number
of trained individuals and the number of active installers. According to the HPA’s report, ‘Unlocking the domestic heat pump workforce’, 39% of those who complete training courses do not immediately go on to install heat pumps. The issue lies not in the availability of courses but in the uncertainty surrounding market demand and deployment. The HPA is working closely with the Government to monitor incentives like the Heat Training Grant and improve post-qualification support to reduce the 39% drop-off rate. The heat pump sector faces significant challenges
in 2025, but they are not insurmountable. Policy clarity, continued support for grants, and reducing the cost disparity between electricity and gas will help accelerate growth. With the upcoming publication of the Warm Homes Plan and confirmation of government funding, confidence in the sector is likely to increase. The HPA is committed to working with the Government and industry partners to overcome these challenges and ensure the sector thrives.
18 April 2025
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