PAC Report Highlights Need For Lower Heat Pump Costs

Last updated: May 29, 2024

Heat pumps have emerged as a primary alternative to conventional heating solutions like gas boilers and log burners.

Despite growing interest and existing government support for this low-carbon alternative, a report from the Public Accounts Committee (PAC) has highlighted the continued need for reduced costs. This applies to the upfront installation cost and the price of running a heat pump.

It currently costs thousands to tens of thousands of pounds to have a heat pump installed. While the Boiler Upgrade Scheme (BUS) can lower the cost by £7,500, only certain households are eligible for these decarbonisation supports.

Another significant hurdle is the cost of running a heat pump. Despite heat pump efficiency being many times that of gas boilers, heat pumps still cost more to run. This is because with gas being around four times cheaper than electricity, the price difference more than cancels out the efficiency gap.

Through its report on Decarbonising Home Heating, the PAC asserted its lack of confidence that the Department for Energy Security & Net Zero or DESNZ can achieve its goal of 600,000 heat pump instalments annually within four years.

According to Housing Evidence, there are around 280,000 heat pumps installed in the UK. And while heat pump grant applications have risen, the current installation rate is a far cry from more than half a million annual installations.

Other challenges facing the growth of domestic heat pump installations include the need for more professional heat pump installers and more clarity for potential buyers.

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