Heat Pump News Bites: 12 May 2025

The Times on leasing a heat pump

Here's a comprehensive roundup of the key UK heat pump news stories from the past week, covering policy updates, industry developments, consumer experiences, and efforts to dispel common misconceptions.

1. Boiler Upgrade Scheme Under Scrutiny for Favouring Wealthier Households

A government review of the £1.9 billion Boiler Upgrade Scheme reveals that up to £900 million in taxpayer-funded subsidies for heat pumps may be wasted, as 40% of recipients would have installed them regardless of the support. The £7,500 grants are primarily benefiting wealthier households, with 52% of subsidized installations in homes with four or more bedrooms and nearly 60% of recipients earning above the UK average income (£36,700). Critics argue that the scheme disproportionately favours affluent homeowners who can afford the average £13,200 cost of a heat pump installation, while less affluent citizens struggle with energy expenses. Mike Foster from the Energy and Utilities Alliance calls for reform, suggesting the funds could better support essential services or vulnerable populations. The scheme’s effectiveness is also questioned for not reducing heat pump prices due to installer pricing strategies. Nonetheless, environmental advocates emphasize the importance of heat pumps in reducing emissions and fossil fuel dependence, with the government highlighting grants targeted at low-income households and social housing. The Times

2. UK Government Proposes Expansion of Boiler Upgrade Scheme to Include Emerging Technologies

The UK government is working on proposals to expand its Boiler Upgrade Scheme (BUS) to offer grants in support of a wider range of clean heating technologies, including air-to-air heat pumps and heat batteries. This initiative aims to provide households with greater choice when upgrading their heating systems, particularly benefiting properties where traditional air-to-water heat pumps may not be suitable. The proposed expansion is part of the government's broader strategy to decarbonize homes and achieve net-zero emissions targets. Business Green

3. UK Introduces 'Smart Ready' Regulations for Heat Pumps

Heat pump manufacturers will need to meet 'smart ready' standards under new appliance regulations, including stricter rules on cybersecurity. Utilities will be obligated to ensure battery energy storage systems, heat pumps, and electric vehicle smart charge points can work across different tariffs under a tariff data framework. These measures aim to enhance grid stability and consumer flexibility, aligning with the UK's broader energy efficiency goals. pv magazine International

4. Record-Breaking Start to 2025 for UK Heat Pump Installations

MCS reports a record-breaking start to 2025 for certified heat pump installations, but the pace of deployment still falls short of 2028 targets. Subsidy support continues to drive heat pump adoption among UK consumers. More than 15,000 heat pumps were installed in the United Kingdom in the first three months of 2025, according to the latest data from MCS. The certification body recorded 5,605 heat pump installations in March, the fourth highest monthly total to date and a 22% increase on March 2024. pv magazine International

5. UK Government May Extend Domestic Energy Grants to Heat Batteries

The UK government is considering expanding the boiler upgrade grant scheme for England and Wales to cover sources of low-carbon heating for domestic homes other than heat pumps, the Guardian understands. The scheme provides grants of £7,500 to householders who switch from gas boilers to heat pumps. The grants are specific to heat pumps and do not apply to other forms of low-carbon heating. A cross-party group of MPs has called for subsidies to be spread to other low-carbon technologies, including heat batteries. The Guardian

6. UK Cuts Fines for Boiler Manufacturers Missing Heat Pump Sales Targets

The UK government has reduced planned fines for boilermakers who do not meet heat pump sales targets from £3,000 to £500 per missed sale. This decision comes after significant industry opposition, which argued the initial fines were unrealistic and would negatively impact consumer prices and employment. The revised scheme aims to allow manufacturers time to strengthen supply chains and increase heat pump adoption without major investor deterrence. The initiative is part of the UK’s strategy to achieve net zero carbon emissions by 2050, as heat pumps, powered mostly by wind and solar energy, are more efficient than gas boilers. Despite government efforts, heat pump installations have lagged behind targets. To further support heat pump adoption, the government has increased the budget for installation grants to £295 million and relaxed certain planning regulations. The Sun+3Financial Times+3pv magazine International+3

7. UK Government Announces Plan to Boost Heat Pump Uptake

Britain has announced an increase in funds for the installation of environmentally friendly heat pumps, along with a relaxation of planning rules to simplify the process. This comes after the Labour government committed to a significant climate goal of reducing greenhouse gas emissions by 81% by 2035 compared to 1990 levels. The heating sector, which currently relies heavily on gas, accounts for about 18% of the UK's emissions. The initiative aims to replace gas boilers with electricity-driven heat pumps through the boiler upgrade scheme. Funding for the scheme will rise by £30 million this financial year and will double to £295 million in 2025/26. Homeowners can apply for grants of £7,500 to help cover the cost of a new heat pump. The government will also eliminate a rule requiring heat pumps to be installed at least one meter from property boundaries. This regulatory change is expected to reduce planning issues that currently deter over a third of potential heat pump users. Reuters

8. Heat Pumps: How UK Homes Can Save Up to £465 a Year

Our findings are encouraging: the average three-person household in the UK could save up to £465 a year on heating costs by making the switch. These savings are not just theoretical—they are based on detailed analysis conducted at the Regulatory Assistance Project and Oxford University’s Environmental Change Institute. The timing of this tool is significant. The UK government has just announced a consultation on expanding the Boiler Upgrade Scheme, which offers property owners up to £7,500 off the cost of replacing fossil fuel heating with a low-carbon alternative. This is a real opportunity for households to take advantage of financial support and make a positive change for both their wallets and the environment. eci.ox.ac.uk

9. UK Government Introduces Heat Pump Sales Targets Enforced by Fines

UK boiler manufacturers must ensure at least 6% of their sales are from heat pumps or face financial penalties under a new government scheme launched April 1, 2025. The Clean Heat Market Mechanism (CHMM) places new obligations on affected companies, with civil penalties and potential criminal prosecution for failure to comply. Originally scheduled to launch on April 1, 2024, CHMM implementation was delayed following lobbying from the boiler industry, with some manufacturers calling the new policy a “boiler tax”. The fines issued for failure to comply have also been reduced, from GBP 3,000 ($3,800) to GBP 500 for each gas boiler sold above the target. The scheme places obligations on companies manufacturing 20,000 gas boilers or more, or 1,000 oil boilers or more. It applies to businesses that manufacture or outsource the manufacturing of fossil fuel boilers or heat pumps, while also owning the right to use the brand name, trademark or other distinctive mark used to market fossil fuel boilers or heat pumps in the United Kingdom. The companies must ensure heat pump sales are at least 6% of boiler sales and report installations to MCS, the CHMM's approved certification scheme. pv magazine International

10. UK Government May Extend Domestic Energy Grants to Heat Batteries

The UK government is considering expanding the boiler upgrade grant scheme for England and Wales to cover sources of low-carbon heating for domestic homes other than heat pumps, the Guardian understands. The scheme provides grants of £7,500 to householders who switch from gas boilers to heat pumps. The grants are specific to heat pumps and do not apply to other forms of low-carbon heating. A cross-party group of MPs has called for subsidies to be spread to other low-carbon technologies, including heat batteries. The Guardian