Home Electrification Insights | Electrify Research

Listening to Consumers on Heat Pumps: Pt 1/4 - Cost

Written by Ben Marks | Jan 20, 2025 2:56:54 PM

 

If we want to sell more heat pumps, we need to start listening to consumers

Because home heating accounts for 17% of the UK’s carbon emissions, the electrification of heat is vital to achieving Net Zero. But there’s a problem. Although homeowners are enthusiastic about getting a heat pump, very few will. We need to change the way we market them if we want to sell more.

Source: Homeowner Electrification Tracker Survey (HETS) by Electrify Research

The government has set a target of 600,000 heat pump installations per year by 2028, and the heat pump industry has geared up to meet this. Yet, despite the ambitious policy and significant investment, progress remains too slow. Why? Because consumer demand isn’t keeping pace, and that in large part, is down to price.

Of the 43% of UK homeowners who are entertaining the idea of getting a new heating system within the next 3 years[ii], just under a third (29%) are considering getting a heat pump. That’s a huge consideration base, comprising 12.5% of all homeowners in the UK. This augurs well for the growth of heat pumps.

However, the top objective for those considering a heat pump is saving money on heating bills (68% cite this). Unsurprisingly, since they are heat pump considerers, 56% of this group also see an environmentally friendly system as important to them.

However, among those both looking for a new heating system and considering a heat pump, when asked unprompted what is stopping them going ahead and getting one sooner a full 72% of them say the upfront costs and overall value don't justify the investment. That’s just top of mind mentions and obviously doesn’t include those who will reject heat pumps once they encounter more practical impediments e.g. adequate space, insufficient insulation, etc. But the interest is there (or getting there) but the costs (both running and up front) are wrong.

Our Homeowner Electrification Tracking Study (HETS)—the world’s largest ongoing study of consumer attitudes, usage, and path to purchase in home electrification - shows that consumer priorities don’t always align with common industry narratives.

The biggest driver? Cutting costs

The messaging around heat pumps often leans heavily on environmental benefits. And while it’s true that installing a heat pump is one of the most impactful climate actions a household can take, homeowners primarily see it as a financial decision—one of the biggest they’ll make in the next decade.

HETS data suggests that leaning too heavily on green messaging is a suboptimal strategy. Instead, highlighting efficiency, low maintenance costs, and available grants resonates far more with consumers. And also addressing the fact that running costs are the biggest concern when selecting a system. Upfront and installation costs rank close behind—especially in today’s cost of living crisis.

Reliability is another key factor—often prioritised over environmental impact

Of course, these priorities vary hugely by income, house value, current heating system, and other factors (all of which can be explored instantly in the HETS dashboard). But overall, in the UK, running costs are king.

For policymakers, reducing running costs is the key. HETS analysis makes it clear: cutting heat pump running costs should be a priority. The upcoming Warm Homes Plan is one opportunity to do so.

Government action

UK electricity prices are among the highest in Europe, partly due to levies on electricity bills. Shifting these costs elsewhere or exempting electric heating users could make a significant difference.

Upfront costs remain a major hurdle, though the £7,500 Boiler Upgrade Scheme (BUS) grant—one of the most generous in Europe—has helped. Even so, for many households, it’s still not enough to make heat pumps viable.

The bottom line? If we want faster adoption, we need to speak to consumers on their terms—and that means focusing on what matters most to them.

Homeowner Electrification Tracking Study (HETS)

All data comes from Electrify Research’s Homeowner Electrification Tracking Study (HETS), the world’s largest ongoing study of consumer attitudes, usage, and path to purchase in home electrification. Based on 24,000 interviews (with an additional 4000 interviews added each quarter) with homeowners in the UK, France, Germany, and the US, it provides a data dashboard offering instant, actionable insights into homeowners, helping organisations identify key barriers and drivers to purchase, refine marketing and communications, and make data-driven decisions to accelerate the adoption of heat pumps, EVs, rooftop solar, and home batteries. With powerful filter and compare features, advanced analytics, deep qualitative insights, and real-time tracking, HETS delivers real homeowner decisions, real adoption trends, and real intelligence to lead the energy transition.

Footnotes

  1. Sample Size / definition: 815 homeowners in UK considering a heating system change within the next 3 years and "hoping/planning" to switch to a heat pump.    /    Fieldwork dates: Conducted via HETS tracker. Approx equal sample sizes over five quarterly waves: July 2023, October 2023, January 2024, April 2024, July 2024. (October 2024 wave not included here.)  /   Question Wording: "Please explain a little more about your interest in getting a heat pump: what is stopping you from going ahead and getting a heat pump sooner?" [Open-text response, coded]

  2. This is likely a big over-estimate on the part of homeowners. Given boilers tend to last about 15 years, probably about half that number will actually end up changing heating systems within 3 years