3 Jul 2023

There are 30 million homes and buildings in the UK, and they account for approximately a quarter of UK emissions. The government, which has gone as far as adding a legal duty to the Energy Bill that must achieve net zero by 2050, has made its bet on tackling this source of pollution; heat pumps. 

To reveal how the government’s plan is progressing, Harding Heating researched the people installing heat pumps, how satisfied they are with them, what is standing in the way of the government achieving its plan and what more the government can do, and the results are fascinating.

heat pump installation

Overwhelmingly, heat pumps are being installed by wealthy households in rural locations. The wealthiest 30% are 10 times more likely to install a heat pump than the poorest, and three-quarters (74%) of those who installed a heat pump live in a rural location.

Those who install heat pumps typically have larger homes, with an average of 4 bedrooms versus 3 bedrooms for those that install a gas boiler. Interestingly, those installing a heat pump typically have older (pre-1900) or newer houses (post-2012). Whereas the most populous category for those that opt for a gas boiler are houses built between 1950 to 1975.

Installing a heat pump is good for the soul

Almost three-quarters of people were more satisfied with a heat pump than their previous heating system

Heat pumps are highly effective at heating water, with 89% satisfaction, but much less successful when it comes to heating space, with only 56% satisfaction. This trend is highlighted further by more than two-thirds having a second heat source, and of those, half were a wood stove and a third a gas boiler. 

Almost three-quarters of people were more satisfied with a heat pump than their previous heating system (73%). Intriguingly, heat pump users were less likely to recommend a heat pump to their friends than those that installed a gas boiler, with a heat pump Net Promoter Score (NPS) of 18 versus 21 for gas.

Impact on energy bills 

A question often speculated on is how a heat pump impacts energy bills. A heat pump is unlikely to reduce your energy bills materially, with 66% of users being satisfied with running costs, compared with almost 60% running cost satisfaction for gas boilers, despite the inflated gas prices in 2022.

So, while a heat pump can give users the warm feeling that they are reducing their household emissions, it won’t save money.

Electrifying householding heating is a heroic task

The government plans to pledge to reach net zero by 2050 a legal obligation. To achieve this obligation, they must affect change across almost every sector and every area of the UK, including household emissions.

Part of achieving this plan is to increase the number of heat pumps being installed by 20 times, from 30,000 annually currently to 600,000 annually by 2028. This is no mean feat. The research revealed that this would take 27,000 new installers needed, up from only 3,000 in 2022. 

Accredited installers

Shropshire and Staffordshire are home to approx. 3 installers per 100,000 people

Echoing the trend of more heat pumps being installed in rural locations, the number of accredited installers is also highest in rural locations. Interestingly, Shropshire and Staffordshire are home to approx. 3 installers per 100,000 people, making a top 10 region in the UK.

It also appears that the energy companies have yet to join the government movement. Where a fifth of gas boilers are installed by energy suppliers, only 4% of heat pumps are. Could this be the energy giants protecting their gas sales; it is certainly possible.

Will the government rise to the challenge?

The government has implemented an ambitious multi-pronged approach to hitting its target. They have launched the Strategic Innovation Fund (SIF), a £450m fund which they have intermated will be topped up if needed.

The Strategic Innovation Fund seeks to 'help turn the UK into the ‘Silicon Valley’ of energy' by backing heat pumps and other energy-related innovations. 

Boiler Upgrade Scheme

The Boiler Upgrade Scheme gives grants of £5,000 towards heat pump installation, incentivizing households to make the switch, but typically households will still have to pay another £5,000 on top, making heat pumps still twice as expensive as an average gas boiler.

Trying to implement both a carrot and a stick, from 2024 the government plans to introduce a £5,000 penalty to the boiler manufacturers per missed heat pump target. This has been received badly by the manufacturers, which are threatening to pass on the cost to customers and reduce investment in the UK. 

Addressing the cost barrier for heat pump

We welcome the government’s efforts to electrify household heating, but I worry they don’t go far enough"

Andrew Harding, Managing Director of Harding Heating, commented on the findings, “We welcome the government’s efforts to electrify household heating, but I worry they don’t go far enough. The underpinning of their approach for households is to make the switch from gas boilers to heat pumps, but currently, only the wealthy can afford to install one. To counter this, we support higher subsidies for lower-income households to make heat pumps equal or, ideally less expensive than a gas boiler."

Need for funds and grants

Andrew Harding adds, "In addition to the cost barrier, the UK doesn’t have nearly enough installers to meet the 600,000-a-year installation target, so the government needs to address this challenge urgently. We believe grants can be part of the solution here too, but this time to fund some of the costs installers face in becoming qualified."

He continues, "The industry and the government can’t and shouldn’t have to win the net zero battle on their own. The people of Great Britain also need to get behind the efforts and opt for heat pumps, so we can proudly make the UK a positive example in the fight against climate change.”