Households reliant on heating oil are increasingly looking to heat pumps as protection against volatile fuel prices, with applications for government support reaching a record high.
New figures show 8,150 households applied to install a heat pump through the Boiler Upgrade Scheme in July, an 81% increase compared with June.
The rise follows the decision to increase the grant available to eligible households replacing heating oil systems by 20%, from £7,500 to £9,000.
The additional support is particularly relevant to rural parts of Wales, where many properties remain beyond the gas grid and rely on heating oil. Almost half of Boiler Upgrade Scheme grants awarded over the past four years have gone to rural households, while 38% have supported properties that are off the gas grid.
Around 200,000 eligible households across England and Wales were contacted in June with information about the enhanced support, which remains available until March next year.
Minister for Local Jobs and Energy Martin McCluskey said:
“Households reliant on heating oil were among the worst affected when the conflict in the Middle East started.
“Installing a heat pump is the best way for people on heating oil to get certainty over their bills and avoid costly spikes in prices due to events out of our control.
“Seeing record numbers in applications for the Boiler Upgrade Scheme is really promising. I would urge eligible billpayers on oil to take advantage of the £9,000 grant to make the switch.”
The growing interest also provides an indication of how government incentives could accelerate the transition towards low-carbon heating in properties traditionally considered more difficult to decarbonise.
One Welsh homeowner living in an off-grid Victorian cottage decided to investigate heat pumps after seeing the cost of heating oil suddenly double. She said the additional £1,500 of grant support had made the upfront investment considerably more manageable, while installation was completed far more quickly and with less disruption than expected.
Another householder replacing an oil heating system said the grant had dramatically reduced the cost of making the switch. After choosing an upgraded heat pump, the household contribution was £530 on top of the £9,000 government support. The homeowner said moving away from oil had also provided greater protection from future fluctuations in oil prices.
Experience from households that have already made the transition suggests older properties can also accommodate the technology.
One homeowner who installed an air source heat pump while converting a 1950s property said the system had remained reliable and low-maintenance seven years later, operating quietly and requiring little intervention.
Meanwhile, the owner of a detached 1800s stone property in Carmarthenshire switched after an ageing oil boiler needed replacing. The installation took around three days and included upgraded radiators, pipework and a new water tank.
The homeowner said the property had “never been so warm”, maintaining a consistent temperature even when outside temperatures fell to -6°C.
The increase in heat pump applications comes alongside wider measures designed to encourage households to generate and use cleaner energy. Plug-in solar panels can now be legally bought and installed in Great Britain, with the government estimating they could save households up to £110 annually.
The wider Warm Homes Plan is also intended to increase deployment of technologies including heat pumps, solar panels and batteries, alongside energy-efficiency improvements.
For rural Wales, where dependence on heating oil remains significant, the combination of increased financial support and growing evidence from households already making the switch could make the transition away from oil heating increasingly viable.
