With the present conflict in Iran forcing oil prices to rise dramatically, there has never been a better time to consider more secure, and greener, alternatives for heating our homes.
Some heating oil customers say their costs have doubled since the outbreak of the US-Israel war with Iran. The UK Fuel Distribution Association (UKFDA) report that many suppliers buy fuel at the market price almost daily, which is why the costs have been quickly passed on.
Unlike consumers who use gas and electricity for heating and hot water, prices for households using oil are not capped by regulator Ofgem and remain extremely vulnerable to global instability. In Great Britain, approximately 3.6% of households use heating oil - 760,000 in England, 140,000 in Scotland and 110,000 in Wales.
Heat pump technology has been around since the late 20th century, with the domestic heating version being used widespread in Europe since the 1970’s. In fact, the EU has 23 million units used for space heating and the UK market is also growing fast with recorded installations in 2025 of 51,886 (a 7% increase on 2024 and over 4.5 times higher than five years ago).
So - what is a heat pump?
Heat pumps provide an electric central heating and hot water alternative to fossil fuel systems such as oil and gas boilers. They can reach efficiencies up to 400% which can help reduce your running costs when compared to older boilers. They work similarly to a fridge in reverse, extracting heat from the air and transferring this through a compressor and condensing loop to provide a heat output that can be used to heat your home along with indirect hot water.
They are kinder to the environment. With 44% of UK electricity generated by a renewables in 2025, and with this figure targeted to increase, they are the future cornerstone of UK policy in reducing carbon emissions from our domestic properties. They can also be powered (in part) by a domestic solar PV and/or a battery system, giving a complete home electric solution.
Heating using gas is slowly being phased out through policy and energy security initiatives. In general, fossil fuel devices are reaching the end of their technological development, but by contrast, most electrical devices and systems are going through rapid technological improvement.
With current global oil price instability, heat pumps not only offer a cleaner alternative but also a more stable electric based solution, away from the volatilities of the market.
And although comparative install costs are higher than a gas or oil boiler, there are significant grant funds towards a qualifying heat pump installation of £7,500 through the Boiler Upgrade Scheme. Heat pumps also attract 0% VAT (up until March 2027, then 5%), including changes to the emitter systems such as radiators, underfloor heating, and the like.
But will it be able to heat my home?
In short, yes! Although heat pumps work best with efficient home insulation, large radiators and pipework, there are many possible solutions and adaptations to both the heat pump selection and the installation, allowing greater flexibility. You will need some external space for the heat pump and an internal cupboard or similar for a hot water tank.
And what about noise?
Heat pumps are not considered noisy. With technological improvements heat pumps are typically in the range of between 40 - 60 decibels (dB), with many models achieving Quiet Mark certification.
Find out much more about heat pumps at our talk on Wednesday 15th April.
Industry expert and Royal College of Science associate Bean Beanland will outline what heat pumps are, how they work, and the benefits they can bring – from lower energy bills to a smaller carbon footprint. He will look at installation and financing challenges too, and you will have an opportunity to ask your questions.
If you’ve been hearing more about heat pumps in recent years but still feel unsure about how one would work in your home, this is your chance to consult a specialist directly.
Find out more about the talk and book your free ticket here
You can also 'visit a heat pump' to see one in real life, listen to it, and find out what the owner thinks about their system. You can find local homes listed on the Nesta Visit a Heat Pump website.