23 March 2026
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Greg Banham, Commercial Director for Navien UK, looks at why the UK is behind with heat pump adoption and suggests what could be done to close the gap and accelerate our transition to renewable heating.
When it comes to heat pump installations in Europe, Norway is leading the way. More than two-thirds of households in this Nordic country of five million people have a heat pump – more than anywhere else in the world – and Sweden and Finland follow closely behind.
In 2024, Norway sold 48.1 heat pumps per 1,000 households, and in the same year, the UK sold 3.5 per 1,000 households, hence its low sales ranking. Positively, however, the UK saw sales increase by 56% last year and was one of only three markets in Europe to experience growth in 2025, meaning that there is a huge opportunity for the UK heat pump sector to climb the ranks, if it is willing to take learnings from the Nordics.
With 2025 shaping up well so far, the outlook is positive, and it is an attainable goal for the UK to climb European rankings soon enough. With the right policies, skilled workforce, and consumer incentives and support, we can unlock this potential. With the result of cutting our carbon emissions, strengthening energy security, and driving growth in the UK’s clean energy sector, heat pumps are a win-win for Europe, so it would be well worth the UK taking notes from Norway’s success.
The key to Norway’s success
In response to the 1973 Oil Crisis, Norway proactively shifted away from fossil fuels, encouraging the population to adopt heat pumps. Key to this strategy was consumer incentives.
The Government ensured early on that fossil fuel heating was the most expensive option; it imposed taxes on carbon emissions from fossil heating fuels to make heat pumps the affordable choice and financially appealing. The Government also invested significantly in training its workforce to install heat pumps, a move which fostered customer satisfaction and positive reviews, further increasing the adoption of the technology. Arguably, the lack of a skilled workforce is one of several bottlenecks holding the heat pump industry back. As well as training and incentives, Norway’s government also implemented long-term policies to discourage fossil fuels and promote alternatives, such as heat pumps.
Ultimately, abundant and affordable clean energy ensured that heat pumps were the economically viable and energy efficient choice for consumers, while an outright ban on oil boilers in 2020 was successful in positioning Norway as the European market leader.
The UK’s situation
While heat pumps are yet to become widespread globally, they offer several benefits compared to traditional heating. Low maintenance and cheap to run, heat pumps are one of the most eco-conscious solutions on the market, effective at reducing carbon emissions and energy bills in properties across the UK.
They will play such a pivotal role in the decarbonisation challenge that the Department for Energy Security & Net Zero’s (DESNZ’s) ambition for the number of hydronic heat pumps installed per year by 2028 is 600,000 units.
To increase demand, the UK Government has boosted the grant available for heat pumps through the Boiler Upgrade Scheme to £7,500, up from £5,000 for an air source heat pump and £6,000 for a ground or water source heat pump. However, heat pumps are still viewed as one of the more expensive options, which is why DESNZ set an ambition for the industry to reduce costs by at least 25% by 2025 compared to 2021 – an ambition that unfortunately was not realised, with reports indicating that cost reductions were minimal. Beyond cost, heat pumps work very well as both a heat and cooling system and have a very efficient conversion rate of energy to heat. A heat pump will have a smaller carbon footprint compared to a gas boiler – they are around four times more efficient - even when plugged into an electricity grid dependent on high-emitting suppliers.
New regulations that came into force this year as part of the Government’s Warm Home Plan, remove restrictions such as the ‘one-meter rule’ and allow for larger units, making installations more accessible, particularly in urban areas. The new regulations remove significant barriers to installations, and there is no better time than now for homeowners and installers to make the move to heat pumps.
While the new regulations are a huge step in the right direction, there is still the question of how the Nordic countries have been able to implement such changes in colder climates, but the UK hasn’t. It could be due to a lack of awareness or the absence of strong policies to promote heat pumps. For certain, installers must receive specialist training to ensure high-quality heat pump installations, something which Norway has shown is key to adoption.
A smart choice for consumers
Norway’s success is not easy to replicate. It is one of the wealthiest countries, and it also makes cheap, renewable electricity from hydropower dams, which lowers monthly bills. Sweden and Finland also rank in the top three for the most heat pump installations per 1,000 households, showcasing that the transition to heat pumps can be both viable and environmentally responsible.
Overall, the success of heat pumps in the Nordics is not accidental. Rather, it is the direct result of a well-designed policy mix of economic instruments, financial support and regulation, underpinned by co-ordination and engagement. The natural efficiency of heat pumps has also helped their deployment.
Navien is fully invested in supporting the UK’s renewable heating transition and understands that it is a complex process. Its comprehensive training programme in partnership with Ultimate Renewables is designed to build installers’ confidence when it comes to heat pump installations, and they can learn how to install Navien’s new PEM750 heat pump a monoblock system.
Taking learnings from Norway, it is clear that for the UK to climb the European ranking, electricity prices must be made more competitive, long-term support schemes put into place, and installers must be efficiently trained to make heat pumps the smart choice for UK consumers.
To find out more
Navien’s full product offering, visit: https://navien.co.uk/professional/
Navien’s heat pump training through Ultimate Renewables, visit: https://ultimaterenewables.com/training
