According to a new report, homeowners would move to clean domestic energy sources if it meant £500 off their annual utility bills.
15% of British households in the Mitsubishi Electric study, Heat Pumps: Accelerating the Switch, said that would embrace renewable heating for just under one-third off their yearly electricity payments.
Affordability is now one of the biggest obstacles preventing the step-change, with existing government levies adding around £140 onto the average household energy bill.
Critics argue this effectively penalises people for making greener choices, despite the fact gas boilers are up to three times less efficient than heat pumps. 33% of respondents in the study said if electricity was the same price or less than gas, they would consider moving to modern renewable heat sources. Removing levies would be a huge step towards this.
Electricity prices should also be decoupled from volatile gas markets, which would lower running costs further for heat pump users and improve energy fairness. Schemes like the Boiler Upgrade Scheme should also be expanded and improved.
Modelling by Dr Ed Manderson, Lecturer in the Department of Economics at the University of Manchester, estimates that a 7% fall in electricity cost would trigger a 9% rise in heat pump installations. If this were to happen, Britain would be well-placed to deliver, with 93% of installers quizzed for the work reporting confidence in their ability to fit the necessary equipment, up from 63% last year.
‘Our research reveals a critical tipping point in public sentiment: the desire to reduce emissions is being outweighed by the reality of energy bills,’ said Russell Dean, Deputy Divisional Manager, Mitsubishi Electric. ‘If we are to bring about considerable reform in how we heat our buildings in the UK, we must look at reforming an electricity pricing system that disproportionately penalises those who opt for low-carbon alternatives
‘Opting for sustainable heating solutions must be a viable solution to the volatile cost-of-living problems facing UK homeowners. Rebalancing the cost of electricity and gas could turn the tide on heat pump adoption and will be key to meeting net zero ambitions,’ Dean adds. ‘Heat pumps are ready. Installers are ready. Consumers and businesses are interested. Now the energy system needs to catch up.’
Image: Andre Taissin / Unsplash
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