UK installers warn subsidy cuts could make heat pumps unaffordable
UK heat pump installers fear planned cuts to the Boiler Upgrade Scheme will make low-carbon heating unaffordable and weaken a growing industry. The grants help property owners replace fossil fuel and direct electric heating, and installers say many customers depend on them to choose heat pumps.
Introduced in 2022, the scheme offers upfront grants of up to £9,000. Installers report that about 75% of one company’s customers use subsidies, while another business saw weekly installations fall from six to eight to none after an earlier incentive ended. Heat accounts for nearly a fifth of UK greenhouse gas emissions, and the country has 3.5 heat pumps per 1,000 households, compared with 632 in Norway.
In short
- Installers fear subsidy cuts will make heat pumps less affordable.
- Grants of up to £9,000 support low-carbon heating.
- The UK has 3.5 heat pumps per 1,000 households.
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The case for
Keeping the grants at their current level could make heat pumps affordable for more households, especially where installation costs are a barrier, and sustain demand for installers. Supporters argue that predictable subsidies can help the industry grow, build skills and capacity, and advance cuts to emissions from heating.
The case against
Reducing grants could limit public spending and avoid subsidising installations that some households might undertake without assistance. Advocates of cuts may argue that support should be targeted or tapered as the market develops, while lower costs, competition and other measures make heat pumps viable without long-term reliance on grants.
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Originally published by The Guardian as “‘No one saves the planet if it hits their pocket’: UK heat pump installers fear planned subsidy cuts”.