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n March 31, UK boiler manufacturers completed the first year of the Clean Heat Market Mechanism (CHMM). This government policy mandates that manufacturers meet specific credit targets for heat pump sales relative to their overall boiler sales each year. Upon reviewing year-end sales data, it’s become clear that hybrid heating systems – which combine traditional fossil-fuel boilers with electric heat pumps – are a popular technology even though there is no funding within the BUS scheme.
The state of hybrid heating demand
According to the data, a good portion of registered boiler installations were hybrid systems. That’s despite there being no government funding available for hybrids, whereas full heat pump installations benefit from a £7,500 grant under the Boiler Upgrade Scheme (BUS). Impressive hybrid sales are a testament to the technology’s appeal. Most boiler purchases are “distress purchases,” where the system has failed and heat and hot water need to be restored quickly. Hybrid installation is quick and straightforward, whilst approval for a full heat pump system can take weeks, or even months, to go through. That’s not an enticing thought for homeowners or landlords. We see particularly high demand for hybrid
systems from social housing, in part because of the ease of installation, but also because it’s easier to control a hybrid, which is useful in settings with high tenant turnover.
The government’s stance on hybrids
The government currently recognises hybrid sales as half a credit under the CHMM. This is because the government considers hybrids to have lower decarbonisation potential compared to full heat pump systems. We can trace this misunderstanding back to
2020, when the government’s Electrification of Heat Demonstration Project investigated hybrid performance. At the time, it was found that the average contribution of the heat pump element in a hybrid system was around 40% of the total heat load. Yet, in trials Worcester Bosch has undertaken in
partnership with the University of Salford, we found the heat pump powered the heating system more than 90% of the time. The government’s perspective is further
cemented by the most recent draft of the Home Energy Model, a framework designed to assess energy performance in residential buildings. Currently, hybrid systems are placed firmly within Band D, with the boiler element described as the primary heat source of the system. This, of course, isn’t the case. The primary heat source is the heat pump, which can be supplemented by the boiler in extremely cold conditions. According to our findings, that’s around 6% of the time.
HYBRIDS & ALTERNATIVE HEATING SOLUTIONS
What will it take to support hybrid heating in the UK?
Martyn Bridges, director of external affairs at Worcester Bosch makes the argument for hybrid heating systems and calls for them to be given funding as part of the Boiler Upgrade Scheme (BUS)
For now, the government’s view is clear: although
hybrids are supported in most other European countries, they aren’t yet being funded by the BUS.
The BUS is extending to alternative technologies
Recent changes to the BUS have made additional technologies eligible for funding, such as air-to- air heat pumps. This makes me optimistic that the government is at least considering how to support alternative heating systems. The BUS’s budgetary underspend could be the
wakeup call the government needs. On the 31st March 2026, the end of the 4th year of the BUS, some £60 million of the scheme’s £295 million backing went unclaimed. This year, the budget is set to rise to £400 million. I can only assume the government feels the additional funding will spur the market.
But the issue plainly isn’t funding. It’s the electricity price crisis. Heat pumps generally operate 3-4 times more efficiently than gas boilers, so if electricity costs more than 4 times the price of gas, homeowners won’t benefit. Until we can go to market with the pledge that installing a heat pump will save consumers money
on their heating costs, BUS uptake will continue to struggle.
Will the government change tack?
An underspent budget may prompt policymakers to review the advantages of hybrid systems. If the BUS were to extend, it stands to reason that plenty of consumers would apply for a grant to support a hybrid installation. Particularly if they have solar panels – which millions do – and could transition much of their gas usage to electricity for no extra cost. Even if the government offered a smaller grant of £2,500, it could help equip up to three properties with a hybrid system for the same cost as part- funding one full heat pump. So, we’re cautiously optimistic that unimpressive BUS uptake rates will prompt the government to reconsider its approach. Whilst the technology of a heat pump is fantastic, not everybody’s prepared – or able – to make the compromises needed to install one. Meanwhile, hybrid heating systems could deliver the best of both worlds – consumer-friendly installation and impressive carbon savings – compared to the binary choice of a fossil-fuel boiler or a heat pump.
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