Only 6% of UK homeowners have switched to heat pumps, despite 80% expressing concern about climate change, according to a new report from Mitsubishi Electric. The company’s study, Heat Pumps: Accelerating the Switch, highlights the UK’s electricity pricing structure as a key barrier to adoption, arguing that current levies on electricity make low-carbon heating options less financially attractive.
The report, based on a survey of 2,000 homeowners conducted by Opinion Matters, found that one-third of respondents would consider switching to a heat pump if electricity cost the same or less than gas. However, 15% said they would only consider switching if their annual energy bill were reduced by at least £500 (approx. USD 610).
Currently, UK households pay around £140 (approx. USD 170) annually in environmental levies on electricity, compared to £50 (approx. USD 61) on gas. Although heat pumps are up to three times more efficient than gas boilers, these levies can make them more expensive to operate.
Modelling from Dr Ed Manderson of the University of Manchester indicates that a 7% reduction in electricity prices could lead to a 9% increase in domestic heat pump installations. A similar effect is seen in the commercial market, suggesting wider pricing reform could significantly boost adoption.
Mitsubishi Electric also surveyed heating installers, finding that 93% now feel confident in their ability to install heat pumps — up from 61% the previous year.
The report outlines several policy recommendations, including rebalancing green levies to reduce electricity costs, decoupling electricity pricing from volatile gas markets, and expanding financial support schemes such as the Boiler Upgrade Scheme. One in three homeowners surveyed were unaware of the grant but said it would make them more likely to switch.
Russell Dean, Deputy Divisional Manager at Mitsubishi Electric, stated: “Our research reveals a critical tipping point in public sentiment: the desire to reduce emissions is being outweighed by the reality of energy bills. 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.”
Architect and Mitsubishi Electric Ecodan Ambassador George Clarke added: “The technology is ready, and installers are ready to make the switch from gas heating to heat pumps, but the inflated price of electricity remains a major issue for both consumers and businesses.”
