Applications for the Boiler Upgrade Scheme remain on the rise
UK Heat Pump Installation Targets Face Challenges but Progress is Being Made
The United Kingdom is making strides towards its ambitious goal of installing 600,000 heat pumps annually by 2028, but several challenges remain. As of the first half of 2025, only around 30,000 heat pumps have been installed, which is a mere fraction of the annual target if extrapolated.
One of the main challenges is the installation capacity and workforce skills. The rapid scaling up of installers and supply chains is essential to meet the demand. Another hurdle is the planning and regulatory delays. Previously, planning permission requirements slowed installations, particularly for external units near property boundaries.
Financial barriers for consumers also pose a significant challenge. Despite grants, upfront costs remain high, and sustained incentives are needed to drive adoption. Public awareness and building suitability are additional factors to consider, as not all homes are immediately compatible with heat pump technology.
However, there are encouraging trends that suggest progress is being made. The Boiler Upgrade Scheme (BUS), which provides generous grants of approximately £7,500, has significantly increased heat pump applications and installations since its launch in 2022 and is ongoing in 2025.
Reforms in planning permission have also helped reduce delays. The need for local authority approval for units placed within one metre of property boundaries has been removed, reducing delays and cutting the required permissions from 30-40% of cases to 5-10%. This has sped up installations and put the UK on track if growth continues.
Heat pump sales have increased by 54% year-on-year in early 2025, with monthly applications hitting record highs—3,700+ in May and June 2025. Government and trade body support is also actively promoting training, streamlining certification, and engaging public and private sectors for greater scale-up.
Despite these promising developments, the UK must continue to maintain and upscale these policy levers, expand installer capacity, and support suitable housing retrofits to close the current gap between installation rates and the 2028 target. Without continued acceleration, meeting the goal will remain extremely challenging given the size of the existing gas-heated housing stock.
- The growth in heat pump sales, with a 54% increase year-on-year in early 2025, is a testament to the progress made in the industry, as monthly applications hit record highs.
- Financial incentives like the Boiler Upgrade Scheme (BUS) have significantly boosted heat pump adoption since its launch in 2022, providing generous grants of around £7,500, thereby mitigating some of the financial barriers encountered by consumers.
- To meet the ambitious 600,000 heat pump installations per year target by 2028, the environmental-science community, the finance sector, and the industry must collaborate to expand installer capacity, streamline certification, and engage in housing retrofits that make homes suitable for renewable-energy solutions like heat pumps.
