Octopus reports record month for heat pump sales
UK – Octopus Energy says it has recorded its best-ever month for heat pump sales, underlining the rapid growth of the UK’s low-carbon heating market as more households make the switch from fossil fuel boilers.
The supplier says July 2026 was its strongest month on record for heat pump installations, with sales up 71% compared with July last year. The milestone also marks the sixth consecutive month of sales growth for Octopus, which it says highlights continued consumer confidence in heat pump technology.
The announcement comes as heat pump adoption continues to accelerate across the UK. Almost one in four (24%) new homes built in England are now fitted with a heat pump, while in Wales the figure has exceeded 30% for the past three months.
Growing awareness of the potential savings available from electrified heating is helping to drive demand. According to Octopus, households that combine a heat pump with a smart electricity tariff can cut their annual heating bills by hundreds of pounds.
Figures published on the company’s Boiler Beater dashboard show that customers on Octopus Energy’s Cosy tariff save an average of £227 a year compared with households using gas boilers. The company also reports that 94% of heat pumps on the tariff are cheaper to run than their gas-fired equivalent.
The record sales figures coincide with further positive news for the wider market. Ofgem has confirmed that applications to the Boiler Upgrade Scheme (BUS) have increased by 19% year-on-year, with more than 80,000 heat pump installations now supported through the government incentive since it was introduced.
Upfront costs also continue to fall. Octopus says its customers typically pay around £3,000 to replace an oil boiler with a heat pump and around £4,000 to replace a gas boiler. Based on figures from Boiler Guide, the company says this makes heat pump installations broadly comparable with – and in some cases cheaper than – installing a new gas boiler.
The heat pump revolution is accelerating. We’ve never seen demand like this.
Rebecca Dibb-Simkin, Chief Product and Marketing Officer at Octopus Energy
The enhanced Boiler Upgrade Scheme is also influencing consumer behaviour. Since the government increased the grant available for replacing oil boilers to £9,000 in April, Octopus says it has seen almost three times as many homeowners with oil and LPG heating systems switch to heat pumps.
Rebecca Dibb-Simkin, Chief Product and Marketing Officer at Octopus Energy, said: “The heat pump revolution is accelerating. We’ve never seen demand like this – thousands more households choosing to go electric to save money and insulate themselves from global price shocks. And we continue to put our money where our mouth is, sharing weekly saving data from our Cosy heat pump fleet on our Octopus Boiler Beater dashboard.”
The latest figures add further evidence that the UK heat pump market is gathering momentum, driven by stronger financial incentives, falling installation costs and growing confidence in the technology. With government support remaining in place and manufacturers and installers continuing to scale up capacity, the sector appears well positioned for further growth over the coming months.
