The Heat Pump Association UK (HPA UK) has released a report showing that the residential heating sector could nearly double in value with heat pump adoption
At a time where the government is seeking growth, the HPA say UK heat pumps could be part of the answer.
The report, titled ‘From Carbon to Competitiveness: The UK Opportunity Associated with Decarbonising Residential Heating’, details how Gross Value Added from heat pumps could exceed £10bn.
The report uses historical data
The report’s findings include that heat pump manufacturing, installation, and use already exceeded £1bn in the UK economy in 2025 and that, under current projections, it is expected to reach £15bn by 2035.
Furthermore, at that projection, employment in the heat pump sector could grow by more than 110,000 full-time jobs, which would account for 82% of jobs in the residential heating sector. Manufacturing could expand between 15 and 27 times by 2035 too, further boosting the sector’s economy.
Besides the boosts to the economy, it also highlights that embracing these opportunities could make demand for gas fall by 63TW between 2025-35, falling in line with both net-zero and international relation strategies, and that doing so would result in a 6% reduction in air pollution, as the heat pumps account for 17 MtCO2e per year.
Charlotte Lee, HPA UK’s chief executive, said: “Today’s findings show that decarbonising residential heating should not be viewed as a cost burden, but a major economic opportunity. Heat pumps can drive billions of pounds in growth, support tens of thousands of skilled jobs across the country and strengthen the UK’s energy security by reducing reliance on imported gas. With the right long term policy clarity, the UK can build a world-leading heat pump industry, grow our domestic manufacturing, and deliver cleaner, healthier homes for millions of residents.”
Rachel Reeves to slash heat pump subsidies
In November last year, it was revealed in a report that chancellor Rachel Reeves had made plans to cut back subsidies for heat pumps. This was met with the expected reactions from sector experts, who argued that this would serve only to slow the net zero transition by making it more difficult to transition from gas boilers.
Sam Alvis, the head of energy and environment at the Institute of Public Policy Research thinktank, said to the Guardian: “The urge to get bills down is the right one, everything should be on the table.”
He added: “The risk here is that, like winter fuel payments, the additional benefit of cutting support schemes for clean technology isn’t noticed by the majority, but really is by those that lose out.”
Leo Vincent, a senior policy adviser at the E3G thinktank, also commented: “If this is really what the government is planning, it is robbing Peter to pay Paul. This is a disastrous sticking plaster ‘solution’ that would let down working families across the country who need the security of predictable and low bills.
“It would leave Britain vulnerable to the whims of fossil fuel despots, put thousands of jobs at risk and blow a hole clean through the UK’s plans for climate action.”
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