Fresh data shows more U.K. households are choosing heat pumps over gas boilers, with the shift strengthening as the cost case improves.
Octopus Energy said demand reached a new high in July, adding to broader evidence that lower operational costs and government grants are encouraging homeowners to opt for electric heating instead of fossil-fuel systems.
What happened?
According to WalesOnline, Octopus sold more heat pumps in July than in any previous month.
The company said this was its sixth straight month of growth, with purchases 71% higher than in July a year earlier.
Octopus said figures from its Boiler Beater dashboard, which follows homes using its Cosy heat pumps with Cosy Octopus smart tariffs, point to average annual savings of £227 ($306) compared with gas boilers, WalesOnline reported.
The company also said that 94% of those heat pumps are cheaper to run than gas boilers.
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There are signs of similar momentum across the market. Ofgem data showed that applications to the boiler upgrade scheme rose 19% year over year during the April 2025 to March period, per WalesOnline.
The U.K. government is still offering grants of £7,500 ($10,094) for replacing a gas boiler with a heat pump and £9,000 ($12,113) for households switching out heating oil or liquefied petroleum gas boilers.
Why does it matter?
Heating is one of the biggest household energy expenses, so even relatively modest annual savings can make a meaningful difference for families trying to manage monthly bills.
A shift toward electric heating can also shield households from the volatility of fossil fuel prices, which can rise sharply because of global conflicts and supply disruptions.
When households rely less on gas, oil, or LPG for heat, they reduce the planet-warming pollution linked to burning those fuels.
The independent advisory Climate Change Committee has said households could save hundreds of pounds per year by electrifying, or replacing fossil-fuel-based systems with technologies such as heat pumps and electric vehicles.
The committee warns that the United Kingdom is still not making the switch quickly enough, meaning many households may be missing out on potential savings while remaining exposed to fossil fuel price shocks and the health impacts that come with in-home gas combustion.
What's being done?
Government incentives remain one of the clearest tools driving adoption. The boiler upgrade scheme reduces the upfront cost that has long pushed heat pumps out of reach for some homeowners, particularly when grants can cover thousands of pounds.
Energy companies are also trying to make the financial case easier to understand. By pairing heat pumps with smart tariffs and sharing performance data, Octopus is showing that the technology is not only cleaner but can also be cheaper.
"The heat pump revolution is accelerating," said Rebecca Dibb-Simkin, chief product and marketing officer at Octopus Energy. "We've never seen demand like this — thousands more households choosing to go electric to save money and insulate themselves from global price shocks."
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