UK heat pump deployment is on course for a record year, according to the latest deployment data from the Department of Energy Security and Net Zero (DESNZ).
There were 35,387 installations recorded in the first nine months of 2025, up 11% on the 31,819 recorded for same period in 2024 and 76% higher than the 20,142 installations in the first three quarters of 2023.
The government's quarterly deployment statistics record 183,294 subsidy-backed heat pump installations from Janurary 2018 to the end of September 2025, with 43% of the total installed since January 2024.
Air-source heat pumps are the dominant technology receiving subsidy support, accounting for 98% of installations in the 12 months to the end of September 2025, up from 87% in the year ending September 2020.
How heat pumps are subsidized has evolved since 2018, when most support came through the Domestic Renewable Heat Incentive, which closed for applicants in 2022. Grants for heat pumps in 2025 are mostly made through the Boiler Upgrade Scheme (BUS), which supported 7,738 installations in in July to September.
The Energy Company Obligation (ECO) scheme was the second largest source of heat pump subsidy, supporting 3,790 installations in the third quarter. ECO grants are due to be phased out, however, with UK chancellor Rachel Reeves announcing in November that the subsidy will end on Mar. 31, 2026.
BUS and ECO grants accounted for 99% of heat pump subsidies in the third quarter of 2025 and questions remain over future support available for the technology. The outlook for BUS is positive, as the scheme's funding was increased in spring 2025. BUS offers grants of GBP 7,500 ($9,930) for air-to-water and ground-source heat pumps, and the UK government will add a GBP 2,500 grant for air-to-air heat pumps, and heat batteries in 2026.
The soon to be wound down ECO scheme offers grants for energy efficiency upgrades, including in some cases heat pumps and solar panels, and the government's new Warm Homes plan is expected to plug the gap.
The Warm Homes plan had its funding increased in November by GBP 1.5 billion for a total budget of GBP 14.7 billion, but full details on spending have not been announced. The program is tasked with providing grants to support low-income homes through energy efficiency upgrades, although a detailed Warm Homes plan publication is not now expected until the first quarter of 2026. Supported technologies include heat pumps and solar panels.
Warm Homes plan grants are available to eligible households in England, while Boiler Upgrade Scheme grants are available to households in England and Wales. Heat pump subsidy support for consumers in Scotland is available through a Scottish government-administered scheme.
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