The number of Boiler Upgrade Scheme applications has surged by 46% year-on-year, signalling that more homeowners are switching to heat pumps.
The scheme offers grants of up to £7,500 for people who scrap their fossil fuel boiler and install a heat pump.
Having cavity wall and loft insulation is currently a requirement of the grant, thought that is being dropped in May.
There were 2,138 applications in March 2024, up from 1,466 in the same month in 2023.
Daniel Särefjord, chief executive of heat pump firm Aira UK, said: “The heat pump industry is now one of the country’s fastest growing sectors, employing nearly 5,000 people nationwide to accelerate the electrification and decarbonisation of residential heating.
“The industry is working hard to help households bring down their heating related costs, reduce CO2 emissions and to improve air quality for communities up and down the country by helping consumers to scrap their polluting gas or oil-fired boilers.
“With the relaxation of the home insulation criteria for the BUS coming into effect in May, we expect even greater consumer interest in the government’s boiler scrappage grant in the coming months.
“This policy change will help to bring down the average cost of installing a heat pump under the BUS by £2,500, allowing families to choose when to upgrade their home insulation and making heat pump ownership even more budget friendly.”