Heat Pump News Bites: 19 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. UK Government Invests £630 Million in Public Building Energy Upgrades

The UK government has announced a £630 million investment to enhance energy efficiency in public buildings, including schools, care homes, and community centers. This initiative aims to reduce energy costs and emissions, supporting the country's climate targets. Upgrades will include the installation of solar panels and heat pumps, with expected savings of around £650 million annually over the next 12 years. Notable beneficiaries include the Northumbria NHS Foundation Trust and the National Portrait Gallery in London. Reuters

2. Homeowners Encouraged to Adopt Sustainable Heating Systems

As the UK moves towards Net Zero, homeowners are being urged to transition from gas boilers to sustainable heating alternatives like electric heat pumps and solar panels. Government initiatives such as the Energy Company Obligation and the Boiler Upgrade Scheme offer financial support, making these systems more accessible. For instance, after a £7,500 grant, a heat pump installation averages £4,415 and can significantly reduce energy bills. Real-life examples highlight substantial savings, with some homeowners cutting their monthly bills by more than half. The Scottish Sun

3. Poor Building Standards Increase Energy Bills in New Homes

An analysis by the Energy and Climate Intelligence Unit (ECIU) has revealed that subpar construction standards in UK homes built since 2016 have led to residents paying nearly £5 billion more in energy bills. The lack of energy-saving features like heat pumps and high-grade insulation contributes to an additional £1,000 annually per household. Critics argue that the government's decision to scrap zero-carbon building regulations in 2015 has resulted in these increased costs. Retrofitting these homes to improve energy efficiency could cost up to £20,000 per household. The Guardian

4. UK Heat Pump Market Shows Growth Amidst Challenges

The UK heat pump market is experiencing growth, with the government aiming to install 600,000 heat pumps annually by 2028. Despite this target, the UK currently has only 412 heat pumps per 100,000 people, significantly lower than the European average of 3,068. The Energy Security Bill aims to incentivize adoption, and increasing the rate of heat pump installations could create up to 55,000 new jobs. However, challenges such as high installation costs and limited public awareness remain. GreenMatch.co.uk

5. Government Plans to Expand Boiler Upgrade Scheme

The Department for Energy Security and Net Zero (DESNZ) has announced plans to expand the Boiler Upgrade Scheme (BUS) as part of the UK's Warm Homes Plan. Proposed changes include extending grants to cover air-to-air heat pumps and electric heating technologies like heat batteries. The government also plans to invest in training up to 18,000 more home retrofitters to support the growing demand for heat pump installations. These measures aim to make clean heating solutions more accessible to a broader range of consumers. Moneyweek

6. Record Start to 2025 for UK Heat Pump Installations

The UK has seen a record-breaking start to 2025 in heat pump installations, with more than 15,000 units installed in the first quarter. March alone accounted for 5,605 installations, marking a 22% increase compared to the same month in 2024. This surge is attributed to growing awareness of renewable energy technologies and the availability of government grants. However, experts emphasize the need for continued policy support and public education to maintain this momentum. 

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

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

8. Heat Pump Subsidies Primarily Benefit 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 ineffectively allocated, 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. Critics argue that the scheme disproportionately favors affluent homeowners, while less affluent citizens struggle with energy expenses. 

9. UK Government May Extend Grants to Heat Batteries

The UK government is considering expanding the Boiler Upgrade Scheme to include other forms of low-carbon heating, such as heat batteries. Currently, the £7,500 grants are specific to heat pumps and do not apply to other technologies. A cross-party group of MPs has called for subsidies to be spread to other low-carbon technologies, including heat batteries, to provide more comprehensive solutions for households where heat pumps may not be suitable. The Guardian

10. EDF Trials Drones and AI to Streamline Heat Pump Installations

British energy supplier EDF is piloting the use of drones, AI, and smart meter analytics to create 'heat pump ready' roadmaps. This innovative approach aims to streamline the installation process, reduce costs, and enhance the efficiency of deploying heat pumps across the UK. By leveraging advanced technologies, EDF seeks to overcome some of the logistical challenges associated with heat pump installations. smart-energy.com