A Vaillant heat pump / credit: OVO
Latest data from MCS confirms heat pump installations through to the end of August are up 39 per cent year-on-year, but small-scale solar market is set to fall short of record levels
The UK heat pump market is maintaining its recent momentum and is on track for its 'best ever year', according to the most recent data from the Microgeneration Certification Scheme (MCS).
The latest monthly data confirms MCS certified heat pump installations were just shy of 4,800 in August, continuing a trend that has seen every month of 2024 become a top 10 all-time month for heat pump installations.
For the year to year to date, average monthly heat pump installations are up 39 per cent compared to 2023, which was itself a record-breaking year for the technology. Installations of heat pumps have increased sharply since the government last autumn increased the grants on offer through the Boiler Upgrade Scheme (BUS) from £5,000 to £7,500.
"The latest MCS data shows that heat pumps continue to be installed in record numbers," said Ian Rippin, CEO at MCS. "Heat pump installations so far in 2024 currently stand at 36,425, meaning we're 93 per cent of the way to the best year ever for heat pumps."
He added that battery storage systems installed under the MCS scheme are also seeing a record number of installations. "There have now been more than 16,000 certified battery storage installations of all-time, with over 11,000 being installed in 2024 alone," he said.
There was also good news for the UK's green skills base, with a further 91 installers securing MCS accreditation in August taking the total number of new qualified installers joining the scheme this year to over 980. There are now close to 5,100 installers accredited under the MCS scheme, which provides a quality mark for installations and allows customers to access various government grant schemes.
However, the heat pump market remains well short of the government's target of 600,000 installations a year by 2028 and there was also less encouraging news for the solar PV market, which looks set to slow down slightly this year following a strong performance in 2023.
Rippin acknowledged that "solar PV is not breaking any records" this year, but he argued that "installations are maintaining a steady pace with 13,237 solar PV installations in August 2024, bringing the 2024 total to over 108,000".
The government is facing fresh calls from the industry to provide a boost to the domestic clean tech market by quickly finalising its plans for the Future Homes Standard that is set to come into effect from next year and delivering promised planning reforms.
The government is expected to effectively ban the installation of gas boilers in new homes through the standard, which should lead to a significant increase in demand for heat pumps and heat networks. But campaigners also want to see new rules to require solar PV installations on new homes, as well as a relaxation of planning rules to make it easier for existing homes to install heat pumps, solar panels, and battery technologies.
In related news, OVO this week announced a new partnership with heat pump manufacturer that aims to provide more households with access to the energy giant's Heat Pump Plus tariff.
The Heat Pump Plus add-on offers OVO customers with a Mitsubishi Electric Ecodan air source heat pump the opportunity to heat their homes for 15p per kWh, compared to the average standard variable rate tariff cost of 21.29p per kWh. This means that OVO customers could shave 35 per cent off their home heating bills compared to the market average.
"We are committed to making Heat Pumps more accessible and supporting customers in their switch," said Grainne Regan, head of heat at OVO. "Installing a heat pump can reduce gas use to zero when paired with the right installation, helping customers to cut costs and carbon. "Together with Mitsubishi Electric we are working to reward customers for making greener choices and encouraging others to do the same."
Russell Dean, residential product group director at Mitsubishi Electric, said: "Mitsubishi Electric is dedicated to making sustainable heating solutions more accessible and affordable for households. Through our partnership with OVO, we are enabling our Ecodan heat pump users to enjoy significant savings on their heating bills, while also contributing to a greener future. By working together, we can help households transition away from gas boilers and towards more energy-efficient, low-carbon alternatives, while also reducing their energy bills."
You can now sign up to attend the fifth annual Net Zero Festival, which will be hosted by BusinessGreen on October 22-23 at the Business Design Centre in London.
