Why Oregon Allows Gas Backup and the UK Doesn’t: Two Heat Pump Strategies Compared

The UK and Oregon are aiming to reduce fossil fuel dependence in new buildings, but they have chosen markedly different regulatory pathways. For builders, designers and contractors, these contrasting approaches provide a valuable case study in how policy, grid infrastructure and market conditions shape the future of low-carbon heating. Understanding why one jurisdiction mandates all-electric heat pumps while the other permits natural gas backup can help you anticipate how heat pump regulations may evolve elsewhere writes Rose Morrison.

One Goal, Two Regulatory Models

In England, the Future Homes Standard is due to take effect in March 2027 and establishes an effectively electric-only pathway for new homes. Gas boilers will no longer comply with the standard, meaning most new dwellings will rely on air-source or ground-source heat pumps combined with enhanced building fabric, improved airtightness and low-temperature heating systems.

Oregon's 2026 Oregon Residential Specialty Code is set to become effective in October 2026 and takes a different approach. It strongly encourages the deployment of building electrification and high-performance heat pumps. However, the code still permits supplemental natural gas heating in certain configurations, including dual-fuel systems proposed during the public consultation process.

Both jurisdictions are attempting to reduce operational emissions. The difference lies in how they manage reliability, affordability and transition risk.

The UK's All-Electric Strategy

England's Future Homes Standard aims to ensure new homes are zero-carbon ready, avoiding future retrofit requirements as the electricity grid continues to decarbonise.

The policy prioritises:

• Air-source and ground-source heat pumps as the default heating technology.

• Significant improvements to thermal envelope performance.

• Mechanical ventilation strategies that support airtight construction.

• Greater integration of rooftop solar PV.

• Elimination of direct fossil fuel heating in standard new-build applications.

Government analysis suggests that homes constructed to the new standard will achieve carbon emissions at least 75% lower than those built under 2013 regulations.

Prohibiting gas in new homes also avoids locking in additional gas network infrastructure with operational lifespans measured in decades. If buildings constructed today still exist in 2080, installing fossil-fuel systems now risks creating stranded assets.

Oregon's Hybrid Approach

The 2026 Oregon Residential Specialty Code allows builders to incorporate natural gas supplementary heating alongside heat pump systems, reflecting concerns from utilities, industry organisations and contractors raised during the public consultation.

Key considerations included:

• Electrical grid capacity constraints during winter peak demand.

• Resilience during extreme cold events.

• Consumer affordability concerns.

• Existing natural gas infrastructure investment.

• Regional differences in utility generation mixes.

According to industry guidance from HVAC distributor IWAE, dual-fuel systems automatically switch between electric heat pump operation and gas heating based on outdoor temperature, enabling the heat pump to operate efficiently during milder conditions while reserving combustion heating for peak load or severe cold. For Oregon regulators, maintaining this flexibility represents a risk-management strategy.

Grid Capacity: The Central Difference

One significant distinction between the two policies is how each jurisdiction views electricity system readiness. The UK strategy effectively assumes that rapid grid decarbonisation and network reinforcement will occur in parallel with building electrification.

Oregon policymakers have adopted a more cautious position. Large-scale electrification can significantly alter winter demand profiles. Heat pump efficiency is high, typically delivering around three units of heat for every unit of electricity consumed, but widespread adoption still increases total electrical demand.

In regions where distribution networks already experience winter constraints, unmanaged electrification may require substantial investment in:

• Distribution transformer upgrades. Substation reinforcement.

• Additional transmission capacity.

• Energy storage deployment.

• Advanced demand response systems.

The U.S. Department of Energy's hosting-capacity research highlights significant regional variation in distribution network readiness for electrification. Only some states, such as California and New Jersey, have hosting capabilities for electric vehicles, distributed generation and distributed energy resources. This reinforces the argument that local grid conditions matter when designing building regulations.

UK policymakers appear willing to use regulation itself to accelerate network investment. For contractors and developers, this distinction has practical implications. An all-electric code environment shifts greater responsibility onto electrical design, service sizing and coordination with distribution network operators.

Cost Pressures Are Universal

Consumer research indicates that, out of 1,000 homeowners surveyed, 49% stated that up-front and future running costs stop them from investing in heat pump installation. Recent analysis by consumer group Which? also found that many homeowners view heat pump installation as an open-ended risk-management option, rather than a standard home upgrade.

Although the government’s Boiler Upgrade Scheme grants £7,500 toward the cost of a heat pump, the technology remains too expensive for most people, who may still need to pay over £2,500 for installation.

Oregon faces the construction costs challenge. Industry submissions during the ORSC consultation warned that some proposed electrification measures could increase project costs by as much as 57.7%, raising concerns regarding housing affordability and project viability. Broader market data shows similar trends.

Heat pump cost is tied to whether a structure has the facilities for the installation. Since it’s not ideal for every home set up, homeowners should check the outdoor unit, decode the thermostat’s settings and search for the manufacturer’s label. This puts additional weight on consumers. For developers, balancing capital expenditure against long-term operational savings remains one of the sector's most persistent challenges.

The Workforce Bottleneck

Labour capacity is another barrier to deploying heat pumps. The Heat Pump Association estimates the UK will require 42,152 trained heat pump installers by 2028 to meet anticipated demand. Current training rates remain below the required level.

The European Heat Pump Association reports that heat pump sales in 19 European countries fell by 22% in 2024 compared to the previous year, to 2.31 million units. However, many European governments are using policy to drive heat pump sales. These measures are already showing a positive impact, including the EU's removal of fossil fuel boiler subsidies, Germany's communication efforts to combat myths and the UK's increased budget for boiler upgrades, which has contributed to a 56% rise in heat pump sales.

North American contractors face comparable pressures as cold-climate heat pump adoption accelerates, since heat pumps can maintain effective performance even in severe winter conditions when properly specified and installed.

Lessons for Construction Professionals

The UK's model prioritises long-term carbon reduction by eliminating fossil fuel dependency in new housing immediately. Oregon's framework focuses on transition flexibility, grid resilience and consumer choice while still advancing electrification.

For builders, architects and engineers, several lessons emerge:

• Fabric-first design remains essential regardless of heating technology.

• Grid readiness should be considered as early as concept design.

• Workforce development may prove more critical than equipment availability.

• Hybrid solutions may act as transitional technologies in some markets.

• Regulation is increasingly shaping building services design decisions.

What This Means for Future Building Codes

Whether jurisdictions favour all-electric systems or transitional hybrid models, the direction of travel is that heat pumps will play an increasingly central role in decarbonising buildings. For construction professionals, the priority is not simply choosing between competing policy models, but developing the technical expertise, supply chains and design strategies needed to deliver low-carbon homes efficiently, affordably and at scale.

About Rose Morrison

With over 10 years of writing experience focused on sustainable building practices and technical construction systems, Rose Morrison delivers insights on energy efficiency, building codes and industry innovation for construction professionals shaping the future of the built environment.