Support for Heat Pumps is set to increase next year, with budget for up to 3.3k installations per month - doubling the current funded install rate.
Government plans to make £295m available for ASHPs in 2025/26 under the Boiler Upgrade Scheme (BUS), contributing towards the ambition of reaching 50k installs per month by 2028.
John de Bono's analysis shows that since grants increased to £7.5k in Oct 23, demand for ASHPs has risen by ~50%. There's still £95m available for the last 10 months of Year 3 under the BUS, and this looks set to be fully utilised.
We're seeing an increase in bespoke tariffs available to support this, as well as growth in installers and partnerships to support growing demand.
Activity is likely to continue increasing, but will the market be ready for >3k installs per month in 2025? And will the next Government continue this approach?
For more on our market projections for ASHP support, and how this may impact the market, contact Matt Turner.
Matt Turner
Senior Manager
Matt helps lead clients through key strategic projects exploring growth opportunities, business models, competitive advantage, and mergers & acquisitions.
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