The government’s latest update on the Boiler Upgrade Scheme has revealed a robust uptake in heat pump grants.
As of May 2024, the scheme has received a total of 43,246 voucher applications, with the majority, 96%, allocated towards Air Source Heat Pump (ASHP) installations.
This preference for ASHP grants has been consistent since the scheme’s inception.
May 2024 recorded a significant surge in overall applications, totalling 2,987 across various types of heating technologies.
This figure represents a 26% increase from the previous month and more than double the applications received in May 2023.
Reflecting this heightened interest, the scheme issued 36,718 vouchers by May 2024, marking a substantial increase compared to the same period last year.
Redemption applications for grants also saw a notable uptick, with 1,779 applications processed in May 2024, up by 20% from April 2024 and significantly higher than the corresponding period in 2023.
In terms of disbursements, the scheme paid out 1,824 grants in May 2024 alone, bringing the total number of grants paid to 26,929 since its inception.
Geographically, the distribution of grants remained consistent with previous trends, with the South East and South West regions of the UK receiving the highest numbers of installations.
Conversely, the North East accounted for the fewest installations, while Wales contributed 6% of the total grants issued.
The majority of installations funded through the scheme were replacements for existing heating systems, predominantly gas (48%) and oil (20%), with a significant portion (18%) involving properties that previously lacked heating systems altogether.
Financially, the median cost of ASHP installations since the scheme’s launch stands at £13,099, inclusive of grant support.
Ground Source Heat Pumps (GSHPs), meanwhile, recorded a higher median cost of £25,000, with shared ground loop GSHPs averaging £21,765.
In terms of demographics, the scheme primarily supported installations in rural areas (56%) and properties connected to the gas grid (55%), reflecting a strategic alignment with areas where decarbonization efforts are most impactful.
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