• Tech Tech

UK heat pump slowdown leaves climate targets exposed as energy shocks hit, watchdog warns

Households with gas boilers and petrol cars faced bill increases nearly four times larger.

An outdoor air conditioning unit mounted beside a building.

Photo Credit: iStock

British efforts to move home heating away from oil, gas, and coal are stalling just as energy markets look fragile again.

A fresh warning says that slowdown could throw climate targets further off course and leave households more vulnerable to the next fuel-price surge.

What's happening?

According to the Climate Change Committee, the U.K.'s independent climate watchdog, the government's newest emissions-reduction plan is less ambitious than the one released last year and still does not meet the targets needed by 2030.

The CCC said projected cuts still do not line up with the country's Paris Agreement commitments, Building Design reported. It traced that shortfall partly to slow progress in decarbonizing public sector buildings and partly to weaker support for lower-income households seeking insulation and electric heating.

This year's energy-price spike linked to Iran was the second major shock in four years. The CCC found that households with gas boilers and petrol cars faced bill increases nearly four times larger than those with heat pumps, while rural homes using oil boilers and diesel vehicles were hit about 10 times harder.

Despite that, adoption stayed muted: Building Design reported that only about 56,000 home heat pumps were installed in 2025. That amounted to just 7% growth after the 56% jump seen in 2024.

Heat pumps are significantly more energy-efficient than traditional HVAC systems because they move heat instead of generating it, and they provide both heating and cooling. That can translate into tax credits, rebates, and long-term savings for homeowners comparing options through EnergySage's Heat Pump Marketplace.

For households that do not need a whole-home upgrade, Merino offers single-room, ultra-efficient HVAC systems at a lower price point. Its targeted heating and cooling system can be installed in under an hour.

FROM OUR PARTNER

Save $10,000 on solar panels without even sharing your phone number

Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner.

Solar panels can save you more than $50k over their 25-year lifespan, and EnergySage can help you save as much as $10k on installation. Which begs the question — isn't that worth an email or two?

Why does it matter?

The gap affects what people pay to stay comfortable during heat waves and cold snaps, especially when global conflicts send oil, gas, and coal prices soaring.

Another concern is the end of the ECO scheme. It accounted for about a third of heat pump installations over the last three years, and the CCC warned that without a replacement, this year's installations could fall even further, slowing the shift away from gas.

As the U.K. heads into another heat wave this year, Building Design reported that temperatures in southern England could reach 98.6°F (37°C). Cleaner, more efficient home heating and cooling can help communities cut pollution while also making homes safer and cheaper to run.

What's being done?

The watchdog wants the government to act quickly to replace the support lost with ECO and to do more to back electric heating in homes and public buildings. Clearer planning and steadier incentives would give households and installers more confidence when making decisions.

Homeowners looking at efficient heating and cooling options can browse quotes and product choices through EnergySage, which can make it easier to understand costs and available incentives.

For people thinking beyond heating, EnergySage also offers a free solar quotes comparison tool for homeowners interested in slashing their energy bills with solar. With EnergySage's help, the average person can get nearly $10,000 in incentives for solar purchases and installations.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider