New data highlights need for UK policy certainty to sustain industry growth

New data published by the European Heat Pump Association shows that heat pump sales have fallen by an average of 23% in 13 European countries in 2024 compared to 2023.

Whilst the UK bucked the trend in 2024, witnessing a 63% increase in hydronic heat pump sales, this alarming European data underscores the importance of policy certainty to support sustained growth.

The EHPA have identified three reasons for the decline;

1) a change in Government funding and support,

2) the cost-of-living crisis and

3) the low subsidised price of gas. They report the knock-on effect on jobs, with 4,000 being cut due to the declining market.

Commenting on the release, Heat Pump Association, Chief Executive, Charlotte Lee said: “The statistics from Europe highlight the important role of Government in providing policy certainty to support sustained heat pump market growth.

“In the UK, 2024 saw healthy growth in hydronic heat pump sales, in part due to stable policy support such as the Boiler Upgrade Scheme and Energy Company Obligation, and an increasing number of heat pumps being installed in new build housing. However, to sustain and strengthen this level of growth and encourage further investment in UK manufacturing and in growing a skilled and competent workforce, there needs to be a clear, credible heat decarbonisation transition plan published by the Government which includes a detailed heat pump installation pathway, supported by policy and regulatory change.

 “The swift publication of the Government’s response to the Future Homes and Building Standards consultation, regulation updates to implement the changes to permitted development rights for air source heat pumps along with meaningful action taken to reduce the price of electricity relative to gas are essential for supporting continued growth in the UK heat pump market.”

For more details on the EHPA’s data visit: www.ehpa.org/news-and-resources/press-releases/heat-pump-sales-drop-23-in-2024-leading-to-thousands-of-european-job-losses

For more details on the HPA visit: www.heatpumps.org.uk