Heat pumps: Good for the environment but hampered by government obstacles

Homes in a street. Image by Tim Sandle

The UK government is actively promoting the use of heat pumps through various policies and schemes aimed at reducing reliance on fossil fuels and enhancing energy efficiency. However, the high cost of installing heat pumps for home heating could slow down people widely adopting the technology and leave government targets missed, research suggests.

Despite climate commitment pretensions from Kier Starmer’s Labour government, there has been little to no reduction in the average installation cost of the green heating systems over the past decade in the UK. One reason for the slow take-up is because heat pumps are too expensive and too few people know about them.

Although projections suggest a reduction of 20 to 25 per cent in installation costs by 2030, this falls significantly short of the targets set by UK policymakers. Domestic heat pumps currently play a marginal role in heating UK homes. The number of installations is growing, but remains low compared with traditional, fossil fuel-based heating systems.

Researchers from the University of Edinburgh say such findings highlight the need for policy aspirations to be based on realistic assessments of likely cost reductions, and to develop incentives that can address the relatively high upfront costs of some low carbon technologies.

Heat pumps

Heat pumps are devices that transfer heat from one place to another, providing an energy-efficient alternative for heating and cooling homes. These devices extract energy from the air, ground, or water outside and use it to heat a home and to provide hot water, functioning similarly to traditional heating systems but without burning fuel.

Heat pumps can significantly reduce energy costs and are considered a greener heating approach, as they utilise renewable energy sources.

Heat pumps are considered good for the environment due to several key benefits:

• They significantly reduce greenhouse gas emissions by harnessing renewable heat sources like air, ground, or water, which decreases reliance on fossil fuels.
• Heat pumps can reduce household carbon emissions by up to 70% compared to traditional heating methods, making them a more sustainable option.
• They operate on the principle of moving heat rather than generating it, which leads to high energy efficiency and lower operational costs.
• By integrating with renewable energy sources, heat pumps contribute to a greener electricity grid, further enhancing their environmental impact.
• Overall, heat pumps are a promising technology for combating climate change and promoting sustainable energy practices.

As well as decarbonising home heating, advocates for heat pumps say they offer energy security and efficiency benefits, and can offer lower and more stable energy bills.

Research findings: Why the slow uptake?

The researchers assessed historic and forecast data for the installation costs of domestic heat pumps. This included the different factors that can affect heat pump cost data such as the type of home, technology design and the wider heating system. The researchers also assessed equipment and non-equipment costs, and the factors affecting them such as international manufacturing supply chains and local labour markets.

The academics found there has been no significant reduction in the average installed cost of heat pumps over the past decade in the UK, while modest cost reductions were seen internationally.

However, there are prospects for reduced installed costs in the UK, they said. UK forecasts suggest a reduction in total installed costs by 2030 of around 20-25 per cent, with the anticipated savings higher for non-equipment costs — through more efficient installations, for example — than for equipment costs.

While there are prospects for reductions in installation costs, these reductions are unlikely to be on a scale and pace to match UK policy targets.

The research output features in the journal Applied Energy, in a paper titled “Reducing heat pump installed costs: Reviewing historic trends and assessing future prospects.”