How heat pumps are boosting Wales’ economy and creating green jobs

Why heat pumps matter for Wales’ economy

Wales is leading the way on clean heating. More and more households here are choosing to invest in a heat pump to reduce their carbon emissions and lower their energy bills.

The good news doesn’t stop there. The surge in installations is also giving Wales a major economic boost. It promises to provide thousands of high-quality jobs and a stronger economy for the future.

HPA UK’s latest report shows what Wales can expect if the trend continues. If we increase decarbonised heating in line with the UK Government's Carbon Budget and Growth Delivery Plan for 2025-2035:

• The total value of goods and services from heat pump installation and servicing in Wales (usually defined as “Gross Value Added” or GVA) could grow to £529 million a year by 2035. This represents a 500% increase from its current figure of around £80 million.

• Across the UK, electrifying home heating (primarily through heat pumps) could bring an 85% increase in GVA from the entire residential heating sector by 2035, up to £22.5 billion.

This means stronger local businesses, greater investment and more economic opportunity.

Skills and careers for a sustainable future

The heat pump sector provides high-quality skilled jobs. A growing market will mean that careers in training, manufacturing, installation and maintenance will be in high demand.

In 2025, the heat pump installation and servicing sector in Wales was estimated to be providing 905 full-time equivalent jobs. By 2035, HPA UK’s modelling suggests this could rise to 5,446.

This means opportunities for:

• Young people seeking skilled green jobs.

• New entrants into the low-carbon workforce.

• Existing gas boiler engineers looking to expand their skill set.

Get support to make the change

If you’re planning to upgrade to a heat pump, you may be entitled to financial support such as the Boiler Upgrade Scheme in England and Wales.

To access this support, the installation needs to be certified by MCS – the UK’s quality-mark scheme for renewable energy systems like solar panels and heat pumps.

The data on MCS-certified installations shows that a growing number of people in Wales are choosing reliable, clean and efficient heating for their homes:

• 2.3% of homes in Wales already have an MCS-certified heat pump. This is the highest proportion in any nation of the UK.

• 6,682 households in Wales installed a heat pump last year.

• In 2025, six of the 10 UK local authorities with the greatest percentage of households with a heat pump were in Wales. Ceredigion, Anglesey and Gwynedd featured in the top five.

Thinking about joining them? You may be eligible to apply to Green Homes Wales, which offers a free retrofit assessment and 0% interest loans up to £25,000. With an MCS‑certified installer, you could get up to £7,500 to upgrade to a heat pump through the Boiler Upgrade Scheme.

How many heat pumps will Wales need?

To meet Wales’ climate goals and make homes warmer and more energy efficient, Climate Change Committee modelling shows that heat pump installation numbers will need to grow over the next decade:

• To nearly 25,000 home installations per year by 2030.

• And more than 80,000 home installations per year by 2035.

The Welsh Government has set an ambition to install a total of 580,000 heat pumps by 2035. This goal is set out in its Heat Strategy, published in 2024.

Where to find out more

Check out our essential guide to heat pumps.

If you’re interested in working in the sector, you can learn about becoming a heat pump installer. You can also find out about Green Personal Learning Accounts that can support your training journey, and MCS can help you find a training course.

For more details on the HPA UK report, visit hpa.uk.org.

● HPA UK is the voice of the UK heat pump sector. It brings together more than 400 members, including heat pump manufacturers and installers, energy companies and training providers.