Heat pumps to be installed in most UK homes despite fears over cost

Nearly all homes will end up having to install a heat pump rather than a gas boiler or other green alternative, the Government has confirmed – in a move that could cost consumers thousands of pounds.

The measures form part of a drive to switch the UK’s heating networks away from fossil fuels and towards renewable energy in the coming years, with homeowners footing much of the bill.

Only 1 per cent of homes in the UK are primarily heated by a heat pump, which usually cost thousands of pounds to buy and install even after applying a £7,500 government grant.

But by the end of this decade, gas boilers will be banned in new homes with almost all having a heat pump installed instead, usually at the expense of developers before the property is sold.

And the previous Government promised that from 2035 it would be illegal to buy a new gas boiler regardless of the age of your home – although Energy Secretary Ed Miliband has suggested he will scrap the hard deadline.

The moves are designed to help the UK hit net zero carbon emissions by 2050, with heating provided by electricity from renewable sources rather than natural gas.

If the ban on new boilers does go ahead, then anyone whose heating system has reached the end of its life will have to pay for a heat pump – currently much more expensive than a gas boiler – as a replacement.

The Government is putting nearly £300m into subsidies for households next year, as well as relaxing planning rules to make it quicker to install a heat pump, and argues that switching tech can save a family £100 a year.

Ministers have previously promised to consider whether the widespread adoption of hydrogen boilers – which would eventually plug in to the existing gas network, with natural gas replaced by hydrogen – would be a viable alternative to the uptake of heat pumps.

But the Department for Energy Security and Net Zero has signalled that those efforts are set to be abandoned, following growing questions over whether they are practical.

In its response to a report by a parliamentary committee, the department said: “Heat pumps will have a major role to play in all net zero pathways and Government expects most properties will ultimately switch to heat pumps as these are a proven technology and have been installed in high numbers in other countries.”

The same document also confirmed that the Government is committing to a “smart mandate” which will make it compulsory for all heat pumps to be internet-enabled so they can be controlled economically, although the smart functionality can be turned off and smart meters will not become compulsory.

Asked by an MP what homes which cannot ever have a heat pump installed will do instead, energy minister Miatta Fahnbulleh said: “We recognise that heat pumps may not be feasible in a small number of off-gas-grid properties and have commissioned a package of research to collect data on the costs of different approaches to decarbonising the most complex housing archetypes, including the use of alternative low carbon heating solutions.”

The most recently available official data suggest that around 1 per cent of households in the UK primarily depend on a heat pump, with 58 per cent mainly using gas central heating and 24 per cent using an electric heating device.

Only around one in five homeowners said they were likely to install a heat pump the next time they need to replace their heating system, according to the same figures.

The cost of installing a heat pump varies from house to house and is brought down by the £7,500 government subsidy for those eligible. British Gas said that the average cost for its customers in 2023 was £5,690.

Some homeowners also have to pay for improved insulation and replacement radiators to make sure the system works efficiently.

Tony Jordan, senior partner at energy analysts, Auxilione, said: “This will of course come at a cost as the infrastructure internally of homes means upgrades will be needed to turn to alternative methods of heating.”

He said further investment will be needed for the Government to “support capacity requirements and prevent strain on national infrastructure”.

Starting from April, energy firms will face fines if they do not meet targets for a minimum proportion of their installations to be heat pumps rather than gas boilers, with the required share rising over time.

The Behavioural Insights Team, a company spun off from the Civil Service which looks at ways to encourage the public to change its behaviour, has been given a £100,000 contract to push the take-up of smart meters.

A Labour spokesman accused the Tories of failing to act on the need to switch away from fossil fuels, saying: “Every family and business paid the price of the Conservatives’ dismal failure in recent years – they left Britain exposed to fossil fuel markets and the dictators who control them.

“Only Labour can protect households and make Britain energy secure with our clean energy superpower mission to build the homegrown, clean power that our country needs.

“A key part of that is the drive to give more families access to clean technologies such as heat pumps – which can save households money and cut their bills. We are committed to offering more families opportunities to take these choices because that is how we make people better off and protect our energy security.”

A Government spokesman added: “The energy shocks of recent years have shown the urgent need to upgrade British homes and our Warm Homes Plan will make them cheaper and cleaner to run, rolling out upgrades from new insulation to solar and heat pumps.

“We will not force anyone to rip out a working boiler and are making heat pumps more affordable by providing £7,500 towards the cost through the boiler upgrade scheme.

“We recognise there is still more to do to encourage consumers to switch to low-carbon alternatives such as heat pumps and have recently announced plans to remove planning constraints to make them easier to install.”

A further consultation on the role hydrogen could play in home heating is set to take place later this year before a final decision is announced.

Before the general election last year, Labour promised to bring down the consumer cost of electricity by generating more in the UK and reducing reliance on international gas markets.

Heat pumps: what you need to know

By Grace Gausden

What are heat pumps?

Heat pumps are a low-carbon, alternative to way to heat your home. They work by absorbing heat from the environment and transferring it to a fluid, which is compressed to increase its temperature.

There are two main types of heat pump: an air-source heat pump and a ground-source heat pump.

An air-source heat pump extracts heat from the outside air, while a ground-source heat pump extracts heat from the ground using buried collectors, known as ground arrays. Unlike boilers, heat pumps don’t burn fuel to create heat, they transfer thermal energy from one place to another.

How much do they cost to install?

Air source heat pumps tend to cost between £14,000 and £19,000 to install. Ground source heat pumps cost between £28,000 and £34,000 to install, depending on how you install the pipes.

The exact price will depending on the brand, model and size of the heat pump, as well as the size of your property.

The average gas boiler cost for supply and installation is £3,000.

How long do they take to install?
Air-source heat pumps may take a couple of days to install at home, while ground-source heat pumps take longer.

When installing, the drilling could take two days, while other parts of the installation could take four days. And while more expensive, ground-source heat pumps are considered to be more efficient than air-source alternatives.

What grants can you get to help with the cost?

For England and Wales, you can get a grant for up to £7,500 to replace a fossil fuel boiler with a heat pump under the Boiler Upgrade Scheme.

For Scotland, you can get a grant of up to £7,500 (£9,000 in rural properties) for energy efficient home improvements. You can also get a loan of up to £7,500 to install renewable heat in your home. There are no dedicated schemes in Northern Ireland. To find out if you’re eligible, use the Government website. If you are, contact a certified installer to get quotes and they will apply for the grant through the energy regulator, Ofgem.

What energy firms help with them?

Many energy firms will help you install them including Octopus Energy, Eon and British Gas. It is worth contacting your supplier directly to see if they accept the grants and can help with an installation.

Will they get cheaper in future?

Although it is hoped heat pumps will get cheaper in the future, especially for households taking advantage of grants, it is difficult to say by how much and by when exactly.

What are potential issues with them?

Not every home is suitable for a heat pump. All pumps need outside space so this could be an issue if you do not have this. The external space needed for an air space heat pump is no larger than a washing machine but for a ground source heat pump you need more with access for a drilling machine to create a borehole or two. They also work best in well insulated homes as they supply heat at a lower temperature.

If your home is not efficient, you can still install one but you may need to add extra insulation and improve your radiators to increase the flow which could be costly.