The pace of UK heat pump retrofits has fallen in the first three months of 2026, despite continued subsidy support and an increased grant for those using oil or liquefied petroleum gas (LPG) for home heating.
New figures from the Department for Energy Security and Net Zero (DESNZ) record 10,693 retrofit heat pump installations in the first quarter of 2026, 18% lower compared to the previous quarter and a 22% fall against the first three months of 2025. Despite the drop, quarterly installations have more than doubled over a five-year period – with 4,607 recorded for the first quarter of 2021.
Note: The Q1 2022 installations spike preceded the closure of the Domestic Renewable Heat Incentive (RHI) scheme on Mar. 31, 2022.
Air-to-water heat pumps dominate the UK retrofit market, accounting for 99% of installations in the first three months of 2026. The most southern regions of the United Kingdom lead on heat pump adoption with southeast England, accounting for 18% of installs, followed by southwest (14%) and east (13%) England.
Northern Ireland was the only part of the United Kingdom to see quarter-on-quarter growth in the number of retrofit heat pumps installed in 2026, albeit from low volumes. Nine installations were recorded in the fourth quarter of 2025 compared to 30 in Q1 2026.
The pace of heat pump deployment will need to ramp up significantly if the UK government is to achieve its installation targets. The government wants to see at least 450,000 heat pump installations per year by 2030, however just 53,265 were recorded in the DESNZ data for 2025.
Not all new heat pumps will be captured by government deployment statistics, as the data does not include installations in new-build properties. However, only 4.2% of new dwellings in England had heat pumps according to Office for National Statistics data from October 2025. That is set to change. The UK government’s new building standard for homes will make heat pumps effectively mandatory for new build homes when the regulations are fully applied in 2028.
The DESNZ data does not cover uncertified retrofit installations either, although a certified installation is needed to access cash grants, which are the main driver of UK heat pump adoption. The government currently offers GBP 7,500 ($10,000) to households in England and Wales that retrofit with low-carbon heating. Different subsidy support programs are also available in Scotland and Northern Ireland.
The grant value for households using oil or LPG to heat their home was also increased as part of a raft of clean energy policies introduced in the wake of the United States and Israel’s conflict with Iran. The government is offering eligible households a GBP 9,000 grant toward a heat pump installation.
What heat pump grants are available?
The UK government’s boiler upgrade scheme (BUS) is open to consumers in England and Wales. The scheme offers grants to support a range of low-carbon heating technologies, provider installations are carried out by a certified installer.
- Air-to-water heat pump: GBP 7,500
- Ground-source heat pump: GBP 7,500
- Air-to-air heat pump: GBP 2,500
- Biomass boiler: GBP 2,500
Note: Grants are not available for hybrid heat pump systems – for example a combination gas boiler and air-source heat pump. Only one grant is available per property and funding cannot be used to replace a low carbon heating system.
Source link