As the Boiler Upgrade Scheme marks its second anniversary, demand for heat pumps has surged. Applications were up 93% in April (2,138) compared to the same month in 2023 (1,233). Grants for heat pumps increased by 50% last October.

However, if this level of interest were confirmed, the number of applications would be around 25,000 a year, still far off the stated government ambition of 600,000 installations by 2028.

Data released by Ofgem also shows that there have been more than 40,000 applications in total, the scheme has paid out over 25,000 grants, and more than £148 million has been issued.

Industry is taking steps to make heat pumps a more affordable and attractive option.

In some cases, Boiler Upgrade Scheme funding means suppliers can offer heat pump installations at a similar price to a gas boiler. Octopus Energy and British Gas provide complete heat pump installations for £500.

Electricity tariffs designed specifically for heat pumps are helping to bring down running costs. For example, the Octopus Cozy tariff can save heat pump users £96 compared with a standard flexible tariff.

Ovo’s Heat Pump Plus tariff allows customers to access a reduced electricity rate (15p/kWh) for any electricity used by a heat pump.

The industry is also innovating and pushing forward the uptake of low-carbon heating with the creation of smaller heat pumps, hybrid heat pumps, which can be installed alongside an existing gas boiler, and high-temperature heat pumps, which could provide an option for less efficient homes and reduce the need for new radiators and extra insulation.

The government has already implemented the £5 million Heat Training Grant to support the increasing demand for heat pump installations. 

Since July 2023, this has funded training for around 3,000 heat pump installers and will provide around 10,000 opportunities for heat pump and heat network professionals before April 2025.