Heat Pump Production Gathers Pace – But Will the Public Follow?

At Octopus Energy’s manufacturing facility in Craigavon, Northern Ireland, the team is hard at work assembling next-generation heat pumps — even as the UK bakes in unusually warm temperatures. On the day of a visit, London reached 29°C, making the cooler Northern Irish air a welcome escape for visitors from the south.

But this contrast in climate is more than a footnote. With the UK getting hotter due to climate change, the pressure is mounting to decarbonise the ways we heat our homes. One key solution: heat pumps — devices that run on electricity instead of gas or oil.

Octopus is one of the few energy suppliers taking matters into its own hands, designing and manufacturing heat pumps in-house. Their factory floor buzzes with activity as technicians assemble systems built to replace traditional boilers in homes across Britain.

Inside the Factory

Patrick Doran, who joined the company less than a year ago, explains how he’s mastered each stage of the assembly process. "It kind of gets harder as you go up – it's like levels in a game," he jokes. Whether he’s installing pipework or wiring electronic components, every day brings something new.

While the UK government aims to have 600,000 heat pumps installed annually by 2028, current figures fall far short. In 2024, the UK saw fewer than 100,000 units sold.

In mainland Europe, demand surged following the energy crisis sparked by Russia’s 2022 invasion of Ukraine. However, as gas prices have somewhat stabilised, enthusiasm for heat pumps has cooled.

Scalability at the Ready

Despite this, Octopus is preparing for an upswing. Their Craigavon plant can currently produce 600 units a month — with capacity expected to double soon once a second line is operational. The infrastructure exists for ramping up further if demand grows.

According to Aimee Clark, Octopus’s Head of Commercial, the goal is to offer a “plug-and-play” heat pump that suits most UK homes. That’s why we started building our own — to make something better tailored to British properties, she explains.

Other manufacturers, such as Vaillant and Copeland, also maintain UK production facilities. Copeland, which supplies compressors to Octopus, is another player committed to domestic manufacturing.

How Heat Pumps Work

A heat pump doesn’t generate heat in the traditional sense. Instead, it extracts warmth from the surrounding air, using a refrigerant that expands when heated. A compressor then boosts the temperature further, and a heat exchanger transfers this energy to water that circulates through your radiators or underfloor heating.

Octopus’s model comes in a dark grey casing and includes a few proprietary features. Manufacturing Director Mateusz Dewhurst points out a specially patented internal metal plate — helping to regulate internal temperatures while improving performance.

They’ve also filled the outer casing with grey insulation beads — the same type often used in cavity wall insulation — to reduce heat loss.

Is There Room for Improvement?

Dr Zhiwei Ma of Durham University, who once built his own heat pump during his PhD, says the technology is well-established and mentioned they’re fairly simple to manufacture.

Still, Octopus believes there’s space to innovate — especially when it comes to performance. Their units are packed with sensors to track pressure, heat, and overall efficiency, all of which can be monitored via a smartphone app. This helps both customers and engineers catch any performance dips early.

Installation Quality is Key

Steven Metcalf at the University of Warwick stresses that even the best heat pump needs proper installation. Poor setup can significantly reduce efficiency — known as the Coefficient of Performance (CoP). "It could be the difference of a Cop of 2.5 versus 4 – your bills will scale with that," he explains. "It can be a huge penalty for getting a bad install.".

His team sometimes collaborates with manufacturers like Mitsubishi, which runs a heat pump plant in Scotland. The consensus among experts is clear: a great install matters just as much as great design.

Public Perception Matters

Adoption of heat pumps in the UK has been cautious, but not because of the technology itself. In countries like Norway — where winters are far harsher — heat pumps are widely used and trusted. The challenge in the UK is more about public confidence.

Octopus’s own customer feedback suggests positive results. Many report their heat pump offers comparable or better comfort than gas boilers — and at a similar or lower cost.

Still, market forces play a big role. According to Paul Kenny from the European Heat Pump Association, many factories are running well below full capacity due to fluctuating demand.

Northern Ireland’s Irony

Interestingly, Northern Ireland — despite having a high number of oil-heated homes — offers no widespread grants to help with heat pump installations. It’s a twist of irony not lost on TJ Root, Director of Octopus’s Cosy programme. “It's incredibly ironic,” he admits, standing inside a facility that could help decarbonise heating systems throughout the region.

Summary

As the UK aims for net-zero, heat pumps are poised to play a central role in transforming home heating. With companies like Octopus Energy scaling up production and innovating from the inside out, the infrastructure is taking shape. The big question that remains: will the public make the leap?

If energy prices, government policy, and installation quality all align, the heat pump revolution could still arrive in full force — and the Craigavon factory will be ready.

Source: BBC website