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Growth in the heat pump sector

Latest data from the heat pump sector includes a major milestone in UK adoption.

Heat pump outside house

Significant growth in installer training, number of installations and grant scheme applications, indicates accelerating uptake and an increasing recognition of heat pumps as a key technology in the UK’s transition to net zero. Has the tipping point finally been reached?

Doubling up

BUS figures show that July 2024 was the best month for the Boiler Upgrade Scheme (BUS) this year, with 3,047 applications – more than double the figure for July 2023.

Commenting on the latest figures, Ian Rippin, CEO at MCS said: “The latest government figures show that July 2024 was the best month for the Boiler Upgrade Scheme (BUS) this year, with 3,047 applications – more than double the figure for July 2023. July also marked the second-highest month for applications since the BUS launched, just behind the peak in October 2023, which was the first month that followed the £7,500 grant uplift.

“The BUS requires installations to be MCS certified to qualify for the £7,500 grant, giving consumers peace of mind in the quality, safety and performance of their heat pump, whilst making low-carbon heating more affordable and accessible.”

The Boiler Upgrade Scheme (BUS) remains vital to uptake. Government figures for the first half of this year showed that Boiler Upgrade Scheme applications were up 73% from January – June 2024 compared to the same period in 2023, with a total of 14,554 BUS applications submitted in the first six months of 2024.

This reflects the growing number of consumers across England and Wales who are taking advantage of the incentive, which provides £7,500 towards the installation of a heat pump and requires it to be MCS certified.

For those in Scotland, the Home Energy Scotland (HES) Grant and Loan offers a similar incentive, with grants up to £7,500 for heat pump installations, and up to £9,000 for households that qualify for a rural uplift.

A major milestone in installations

Another key measure of sector growth is the number of certified installs and, according to the latest data from MCS, the UK has now reached 250,000 all-time certified heat pump installations.

It is a major milestone in the UK’s adoption of small-scale renewables, and indicates that uptake is gathering pace. From January to July 2024, more than 30,000 certified heat pumps were installed in homes and small businesses across the UK, which is a 45% increase compared to the same period in 2023 and puts 2024 on track to be a record-breaking year for the technology.

Ian commented: “It’s great to see the growing number of consumers across UK who are switching to heat pumps to heat their homes.

“Clearly, there is still some way to go in order to achieve the target of 600,000 annual heat pump installations by 2028, but with the BUS running until March of the same year, consumer demand looks set to continue rising,” he said.

“Data from the MCS Data Dashboard shows that heat pumps continue to be installed in record numbers. The UK reaching 250,000 certified heat pump installations is a significant milestone in the nation’s shift to low-carbon heating. July was also the fifth consecutive month with over 4,500 certified heat pump installations, maintaining progress towards 2024 being a record year for the technology.”

Heat pump training qualification numbers also show sustained growth.

In another boost to sector prospects, the Heat Pump Association’s (HPA) newly published Q2 2024 heat pump qualification data demonstrates increasing levels of interest in heat pump training in the UK.

Just over 2,400 individuals successfully completed a heat pump training qualification in Q2 2024, marking a 14% increase in the number of individuals trained when comparing the first half of 2024 to the same period in 2023, and pushing the total to 4,875 for the year so far.

Even more striking is the 37% rise in qualifications from Q2 2023 to Q2 2024.

Laura Thomas, Chair of the HPA Training Working Group, expressed her enthusiasm for this positive trend: ‘The steady growth in people successfully completing heat pump training courses reflects the increasing recognition and value given to heat pumps as a key technology in the UK’s transition to net zero.

“The rise in qualified individuals year on year solidifies the efforts of training providers to meet the demand of upskilling the workforce to support the growing market.’

Supporting the development of a skilled workforce

Previous analysis by the HPA showed that a record high of almost 40,000 heat pumps were installed in the UK in 2023, but remains some way off the previous government’s targets of 600,000 being installed every year.

Earlier this year, the HPA considered a range of options for tackling what it sees as the key challenges in accelerating heat pump deployment for domestic heating and the industry body remains committed to supporting the sector as growth accelerates:

“The HPA and its members remain dedicated to supporting the development of a skilled workforce capable of accelerating the installation of heat pumps in the UK.

“With the demand for training continuing to rise, the HPA will continue to collaborate closely with training providers, stakeholders, and policymakers to ensure policy, support and training standards remain up to date and effective.

As an installer in the sector, are you experiencing the same growth in both interest and installs? Get in touch to share your own take on the trajectory for heat pumps and what you see as the remaining barriers to uptake: margaret@renewableenergyinstaller.co.uk

Image credit: Dreamstime