As the UK heat pump market increases at the start of 2024 Europe sees a decline in sales for the first time in 15 years
Heat pump installations rise by 39% annually in the UK whilst sales drop for the first time in 15 years in Europe(Image credit: Getty Images)
Heat pump applications have risen annually by 39% in the UK, according to the latest government data.
The figures indicate that more households across the UK are taking advantage of the Boiler Upgrade Scheme giving a £7,500 grant towards ground and air source heat pump installations.
However, Europe's heat pump sales have fallen for the first time in 15 years as numerous heat pump suppliers announce major staff cut backs due to overestimated demand.
January third best month in history for applications
This figure is surpassed only by the numbers seen in October and November last year, directly following the government's increase in heat pump grants. As of the end of January, the scheme had received a total of 33,424 applications and distributed over £133 million in vouchers to customers.
Energy Security Secretary, Claire Coutinho, said: "I don’t want families to have to choose between cutting costs and cutting emissions. I want families to feel supported, not forced, to make changes that are right for them.
"After we made our heat pump scheme one of the most generous in Europe, applications have soared by 40% year on year - showing that our approach is the right one."
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Chief Executive of the Heat Pump Association, Charlotte Lee, said: "It’s great to see interest in the Boiler Upgrade Scheme increasing, supporting the installation of over 20,200 heat pumps to date across England and Wales.
"The uplift in the grant value for air source and ground source heat pumps in October 2023 to £7,500 has been well received by both the sector and consumers and we hope this increasing interest will be a trend which continues forward as we move to decarbonise home heating in line with the government’s legally binding net zero targets."
The latest statistics reveal annual heat pump applications have risen in January by almost 40%(Image credit: Getty Images)
Response to increase in Boiler Upgrade Scheme grants
One reason for the increase in applications could be down to the government increasing the Boiler Upgrade Scheme's grants.
In November last year grants for air and ground source heat pumps were increased to £7,500, which saw an initial boost in application figures.
Subsequently, from November 2023 to January 2024, following the grant increase, the average monthly applications increased by 39% compared to the pre-uplift period.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “This fantastic increase in applications through the Boiler Upgrade Scheme demonstrates not only the desire for heat pumps in this country, but also that our approach to reach net-zero works."
European sales fall for the first time in 15 years
Whilst the UK heat pump market continues to grow the European heat pump market saw a decline in sales for the first time in 15 years across 2023.
Jozefien Vanbecelaere, head of EU affairs at the European Heat Pump Association (EHPA), said: “In 2023, we saw sales fall for the first time in 15 years.”
There were over 3,000 lay offs at the start of 2024 across heat pump brands such as Daikin, Vaillant and NIBE due to overestimated demand.
Gerteric Lindquist, CEO of Swedish heat pump manufacturer NIBE, said: “Demand varied greatly in 2023, both throughout the year and between different markets and market segments. We saw a clear decline in the European heat pump market in particular towards the end of the year.”
The EHPA also blamed falling gas prices for the decline in demand, as well as changing heat pump policies across numerous countries.
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
