Although heat pump sales continue to rise, more than 125,000 were sold in 2025, most installations are still in homes. Non-domestic buildings account for a large share of the UK’s heat demand, but heat pump deployment in this sector remains limited. The Climate Change Committee expects 88% of non-residential heating to come from low carbon sources by 2040, meaning rapid electrification is needed to stay on track for the UK’s 2050 climate targets.

The association is urging Government to:

• Publish a national Plan for the Electrification of Non-Domestic Heat, supported by a dedicated task force.
• Reduce the high cost of electricity for non-domestic users to improve competitiveness.
• Provide clarity on future funding for public sector decarbonisation after the Public Sector Decarbonisation Scheme closes in June 2025.
• Identify fast-track grid connection zones for industrial electrification.
• Develop business models that help unlock private investment in heat pump technologies.

Bean Beanland, HPA UK Commercial and Industrial Consultant, said that while the Future Homes and Buildings Standard will require low-carbon heating in new non-domestic buildings from 2028, this alone will not sustain the supply chains built under previous funding schemes. He warned that without a clear long-term strategy, the retrofit market could stall, putting UK companies and jobs at risk.

Co-Chair Laura Bishop added that members are already working together on practical solutions and want to continue collaborating with the Government to put the right frameworks in place.

To view the HPA UK’s paper in full visit: https://hpauk.org.uk/wp-content/uploads/2026/04/Commercial-Industrial-Key-Asks-HPA-UK.pdf