UK Heat Pump Installers Fear Planned Subsidy Cuts: When Saving the Planet Hits the Pocket

Subsidy cuts loom

The Boiler Upgrade Scheme provides grants of up to £9,000 for sustainable heating alternatives. The government is understood to be planning to reduce the funding as it seeks spending cuts in Wednesday’s budget.

Bill Tuck began fitting air source heat pumps six years ago, when fellow heating engineers doubted the technology would become popular. He said the discussion has since changed, with households showing growing interest in affordable, sustainable home heating.

The Department for Energy Security and Net Zero has called the 2020s a critical period for decarbonising heat. Installers say reducing subsidies could shift more of the cost to consumers.

UK lags on installations

Government data puts emissions from heating buildings at approximately nearly a fifth of the UK’s greenhouse gas total. The country remains well behind other European nations in heat pump installations.

Norway, described as the global leader, has 632 heat pumps installed per 1,000 households, compared with 3.5 in the UK. Jim Lacey, who has worked in renewables for 20 years through JLN Plumbing & Heating, said consumers may be deterred if the expense falls on them.

Jobs and apprentices at risk

Adam Killa, founder of Ask Renewables in Burscough, Lancashire, has seen the effects of subsidy removal. He pointed to the closure of the Renewable Heat Incentive in 2022, which had paid households for generating clean heat.

Tuck and Lacey say reduced support could put apprenticeships and the wider industry at risk, including installation, repair, delivery and manufacturing work. Tuck warned that failing to train young workers could leave too few installers and repair engineers.

Lacey said he expected households and businesses to move away from grants gradually as heat pumps became more common and production costs declined. He described a sudden reduction or removal of the scheme as catastrophic for work already undertaken.

Government defends its approach

The government says it remains committed to lowering family bills while investing in clean, homegrown energy and warmer homes. It says those investments will protect households from volatile fossil fuel prices.