JUNE 2024 | VOLUME 62 | ISSUE 5


Heat pump grant scheme reports record applications


Demand for heat pumps in the UK has almost doubled in a year according to the latest government figures.


Ofgem found that applications for the Boiler Upgrade Scheme rose by 93% in April compared to the same month last year. Over 2,100 homeowners applied for a grant in April alone, up from around 1,200 in April last year. The figures also show an 11% month-on-month increase from March to April 2024. The Boiler Upgrade Scheme has


a monthly budget of £12.5 million to fund roughly 1,666 grants. However, since the scheme was relaunched in October with increased grants up to £7,500, demand has risen to an average of over 2,100 applications per month. The figures show that the


average monthly applications between November and April are up 49% to 2,136 applications compared to 1,435, the monthly average before grants were increased. Since the scheme’s launch two


years ago, there have been more than 40,000 applications in total, with the scheme having paid out over 25,000 grants and more than £148 million issued. DESNZ says the increase has


been helped by offers from energy suppliers, which can make some heat pump installations a similar price to fitting a gas boiler. Octopus


and a 75% reduction in heating- related carbon emissions and air pollution in comparison to a domestic gas or oil boiler. “After the election, I hope the


new government will prioritise this transition and work closely with the British heat pump sector to meet our climate commitments, decarbonise homes and secure a fair deal for UK residents. In the next parliament, our much-needed energy transition will depend on MPs scrapping planning policy


red tape,


Energy and British Gas both offer complete heat pump installations from £500.


New tariffs Meanwhile, the introduction of cheaper electricity tariffs by energy companies is helping to reduce running costs, through electricity


tariffs designed


specifically to work with heat pumps. For example, the Octopus Cozy electricity tariff can save heat pump users £96 compared with a standard flexible tariff. Ovo’s Heat Pump Plus tariff


allows customers access to a reduced electricity rate (15p/kWh) for any electricity used by a heat pump. And British Gas is providing a unit rate of just 14p/kWh for the electricity used to run the heat pump in the first year. “These latest figures build on


previous growth and suggest that more and more homeowners are continuing to prioritise heating their homes sustainably,”


comments Gail Parker, low carbon homes director at Centrica New Business Net Zero. “The rising number of


households utilising the Scheme will only be bolstered by the recent expansion of the technologies that qualify for grants. Now the priority must be bringing heat pumps further into consideration for homeowners who are planning to upgrade their heating system over the summer months.” Daniel Särefjord, CEO of heat


pump manufacturer Aira UK, adds: “Without doubt one of the key drivers behind heat pump sales doubling was the government’s decision to introduce a £7,500 grant, helping families to scrap their polluting gas boiler and replace it with an environmentally friendly heat pump. “This helping hand has raised


awareness of the benefits of innovative heat pump technology, such as lower heating costs, greater energy security for the UK


rebalancing the taxes and levies on electricity and gas, as well as continuing and progressing the nation’s subsidy offering.”


Skills shortage Despite the rise in numbers, the level of uptake still falls short of government targets and there remain concerns that a lack of skilled installers could hamper further growth. Vishavjeet Sodhi, head of air


solutions at LG Business Solutions, comments: “Concern has been growing over the dire shortage of skilled heat pump engineers. Both within the existing workforce and the need to add a further 27,000 skilled professionals in the next six years. “It’s essential that as a nation


we are building the foundation of skills required to understand and install these green technologies, which are so vital for our future. Some level of reform is clearly needed both to attract new apprentices, as well as upskill existing engineers if net zero targets are to be achieved.”


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