The start to the year has seen a rise in heat pump installations according to data from Project Ambient.

In January, 4,743 heat pumps were installed under the MSC certification scheme, under which most pumps are recorded.

MCS certified heat pump installations stood at 4,743 by January 25, a rise of 26 per cent from January 24, whilst the cost of an MCS certified installation was down 2 per cent year on year, although it has risen from December to January and uis now £13,197 (or £5,670 after a deduction for the BUS voucher).

Which brings us to BUS applications, that were up 79 per cent on January 2024 to January 2025 comparison.

And when it comes to new builds, the percentage of those with heat pumps rose like for like from 11 percent to 20 per cent of the market share in the same comparison period.

Meanwhile MCS certified domestic battery storage installations have almost tripled, growing 177 per cent since January 2024.

The results of these increases leads Ambient 6to believe that the industry is well positioned to meet incoming Clean Heat Market Mechanism (CHMM) targets.

Ambient estimate that around 1.3 million replacement boilers were installed in the UK in 2024 and comparing this with MCS data suggests a 4 per cent market share for heat pumps in 2024, meaning that the industry would have met its targets under the delayed CHMM last year.

The industry is on track to meet 2025 CHMM targets, with projections based on 2025 performance to date signal that the market share for electrified heating technologies such as heat pumps and zero emissions boilers is on track to exceed 6 per cent and the industry will be able to meet 2025 CHMM targets.

However, Ambient note that government interventions are catalysing market growth. Given that some 43 per cent of heat pumps installed in 2024 were government-supported. The significant proportion of government-supported installations underscores the importance of policy measures in driving adoption. Continued funding for government schemes is needed to maintain adoption rates and drive the investment and innovation that will lead the industry to a state where it can sustain itself.

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