Scottish heat pump rollout falling behind.

Funding delays and high electricity costs are stalling Scotland’s decarbonisation progress, according to the Plumbing and Heating Federation .

The Plumbing and Heating Federation has raised concerns over the slow pace of heat pump installations following newly released Freedom of Information figures. Data from the Home Energy Scotland (HES) Grant and Loan Scheme and the Private Rented Sector (PRS) Landlord Loan Scheme reveal that fewer than 9,000 heat pumps have been installed since 2019.

Fiona Hodgson, Chief Executive of the Scottish and Northern Ireland Plumbing and Heating Federation, said: “While it is encouraging to see growing numbers of homeowners and landlords making the switch to clean heating solutions, the Scottish Government’s ambition of over one million homes converted to low or zero-emission heat by 2030 is simply not achievable under current conditions. The data highlights the urgent need for clearer policy direction, greater financial certainty and stronger industry support.”

Financial strain on installers

The Federation has also raised serious concerns over the Home Energy Scotland scheme’s payment structure, which places a heavy financial burden on installers. Many installers must absorb substantial upfront costs, leading to cash-flow pressures and administrative challenges that threaten business sustainability.

“Installers are at the heart of Scotland’s green heating transition, but they need a stable, transparent funding framework to remain viable. Addressing cash-flow pressures and streamlining payments is critical to scaling up heat pump adoption at the pace required.”, said Hodgson.

She added: “Today’s CBI report highlights the significant economic benefits of investing in the net zero economy. In Scotland alone, the sector contributes £9.1 billion, 4.9% of the country’s total GV, and supports nearly one in 25 Scottish workers. However, the financial strain of this transition cannot fall solely on already stretched businesses, especially as they face mounting pressures, including the upcoming National Insurance hike.”

‘Spark gap’ must be closed to drive consumer uptake and confidence

Beyond funding and administrative hurdles, the Federation is calling for urgent action on the wider policy challenge of energy pricing. The significant disparity, known as the ‘spark gap’, between electricity and gas costs remains a major barrier to heat pump adoption.

 Fiona Hodgson, concluded: “Even with various funding schemes, the fundamental cost imbalance between electricity and fossil-fuel heating remains a deterrent for households. Closing the spark gap will require close co-ordination between Westminster and the devolved administrations.

“Only by working together can we provide the financial incentives and market certainty needed to boost consumer confidence and achieve Scotland’s net-zero targets.”