Octopus Energy has reported record heat pump sales as more households switch from gas boilers. The company recorded its best-ever month for heat pump sales in July, marking the sixth consecutive month of growth, with purchases up 71% compared to the same month last year.
Customer savings with heat pumps
Octopus's 'boiler beater dashboard', which tracks performance data from homes using its Cosy heat pumps and Cosy Octopus smart tariffs, indicates customers are saving an average of £227 a year compared to a gas boiler. Furthermore, 94% of these heat pumps are cheaper to run than a gas boiler at current energy rates.
Government grants and scheme uptake
The UK Government offers subsidies for heat pump installations: £7,500 for replacing a gas boiler, and a higher £9,000 grant for replacing heating oil or LPG boilers, introduced to help those affected by soaring oil costs following the Iran war.
Data from energy regulator Ofgem shows that the 'boiler upgrade scheme' from April 2025 to March 2026 saw a 19% increase in grant applications compared to the previous year.
Industry and committee perspectives
Rebecca Dibb-Simkin, chief product and marketing officer at Octopus, 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.”
The independent Climate Change Committee has stated that households could save hundreds of pounds a year on bills by 'electrifying' – switching to technologies such as heat pumps and electric vehicles. However, the committee recently warned that the country is not electrifying fast enough for households to achieve these savings, which would also cut planet-heating emissions and reduce exposure to fossil fuel price shocks like those from the Iran war.
