Homeowners view heat pumps as a ‘high stakes gamble’, but costs are only partly to blame, Which? finds
Consumers are increasingly open to the idea of getting a heat pump, but uptake remains low despite growing interest. The consumer champion spoke to homeowners to understand what is holding them back.
Which? carried out research to find out why uptake remains so low. The consumer champion surveyed over 1,000 homeowners to quantify key attitudes including levels of uncertainty, perceptions of risk and cost concerns.
High costs have often been cited to explain the sluggish rate of adoption, but Which? researchers have identified psychological factors that play a significant role alongside financial considerations.
For instance, a third (33%) of homeowners surveyed by the consumer champion who had looked into a heat pump but decided against or were undecided said there are “too many long-term uncertainties” for them to fully consider getting a heat pump and 29 per cent explicitly agreed that “the investment feels too much of a gamble.”
Participants in Which?’s interviews and focus groups raised a long list of unanswered questions covering the entire heat pump journey: from buying the technology, to living with it and eventually selling their home. Rather than facing a single barrier, homeowners encounter multiple uncertainties that build on one another, which creates a compounding sense of risk. Confidence is undermined as these uncertainties accumulate, which makes the investment increasingly difficult to justify.
One cause of this anxiety is the perception that the heat pump installation market is a ‘Wild West’ filled with patchy advice and cowboy builders. Those surveyed consistently expressed the need for a recognised and rigorous standard of authority as a benchmark for trust.
The government’s Microgeneration Certification Scheme (MCS) seeks to provide the guarantee of quality and installer competence that homeowners are looking for. One problem with the MCS is that homeowners have almost no spontaneous awareness of the acronym. Eight in 10 (77 per cent) of homeowners surveyed who had rejected or were undecided about getting a heat pump said they were not aware of the MCS certification for heat pump installers prior to taking the survey.
For MCS to serve its purpose of instilling confidence, Which? believes that the government must improve the MCS’s visibility and communicate its standards in plain, accessible language that directly addresses homeowners fears. Once the MCS concept was explained to respondents as the “UK’s quality mark for renewable energy systems”, three quarters (75 per cent) of homeowners surveyed stated that an MCS certification would reassure them about getting a heat pump, with only four per cent saying it would not.
Another problem with the MCS is its mixed track record as a safeguard against cowboy installers. The MCS has introduced a new installer scheme which aims to address many of its past problems, but the effectiveness of this scheme remains to be proven.
In the survey of 1,004 homeowners who had considered but rejected or were undecided about getting a heat pump, affordability remains the most significant concern. Almost half (49%) stated that both upfront and ongoing costs are stopping them from getting a heat pump. To solve this, new financing models are being promoted to overcome the cost barrier, such as Heat-as-a-Service and Property-Linked Finance. But Which? found that these new models often increased uncertainty rather than reducing it.
Homeowners expressed particular concern about losing control over their heating and potential difficulties when selling their home in future. In contrast, more traditional options like additional borrowing on an existing mortgage were viewed far more positively.
Uncertainty about future energy bills is adding to homeowners’ anxiety. Many of those surveyed said they had no clear way of knowing whether switching to a heat pump would actually save them money over time.
To tackle this, Which? is calling on the government to reduce the cost of electricity by removing environmental and social levies from bills and funding them through general taxation. Which? also recommends incentivising the use of performance monitoring technology to improve the efficiency of heat pump installations and give homeowners greater confidence in their running costs. Additionally, the consumer champion wants the government to help people access and choose appropriate tariffs, including smart tariffs, so they can keep their bills as low as possible.
Another factor is that heat pumps simply remain an unfamiliar technology for most people. Uncertainty and anxiety are rampant due to concerns about comfort, speed of heating, and whether homes will feel as warm as they do now.
Consumers perceive heat pump installation as a step into the unknown, which is a psychological barrier that purely financial solutions, such as loan schemes, cannot solve. Better information and advice is needed for consumers to overcome their unfamiliarity and to build confidence in this new breed of heating system.
Which? recommends that the government provides official information services with reliable facts on costs, performance and what to expect during and after installation. The government should also support partnerships with businesses, local authorities and consumer groups to deliver tailored advice that helps homeowners understand their options and feel confident when choosing a heat pump.
Which? is calling for the government to introduce a Warm Homes Guarantee to give homeowners much-needed reassurance about the quality of heat pump installations. The proposed guarantee would cover the standard of work and include a clear commitment to resolve any problems quickly and without hassle for the homeowner.
Sue Davies, Which? Head of Consumer Protection Policy, said:
“Home heating is a costly but essential lifeline in the UK, so it is fully understandable that consumers perceive heat pumps as a high stakes gamble in the absence of robust protections and greater clarity about the impact on their future energy bills.
“Interest in heat pumps is steadily growing, but homeowners are being held back by high upfront costs, uncertainty about running costs and a lack of confidence in technology that is still unfamiliar for many.
“To support consumers considering a heat pump the government needs to ensure they are a straightforward, safe and affordable option.”
-ENDS-
Notes to editors
Methodology:
Which? used a mixed-methods, three-stage approach combining qualitative and quantitative research with UK homeowners who had considered but rejected or remained undecided about installing a heat pump.
Qualitative research consisted of 9 in-depth interviews and 5 focus groups to explore attitudes, uncertainties, and reactions to heat pumps and different financing models in detail.
A 10-minute online survey was conducted with 1,004 homeowners who had researched heat pumps but ultimately rejected or remained undecided about proceeding.
The survey quantified key attitudes, including levels of uncertainty, perceptions of risk (“gamble”), cost concerns, awareness of MCS, and reactions to MCS once it was explained.
Stimulus materials describing MCS and various financing models (including Heat-as-a-Service and Property-Linked Finance) were used in both the focus groups and survey to gauge responses.
Findings on the need for trust, quality standards, and reassurance around installation drew on both the qualitative discussions and survey results.
Which?’s advice for consumers interested in heat pumps:
MCS certification: Choose an MCS certified installer and products if you plan to apply for government funding like the Boiler Upgrade Scheme. This provides assurance on quality and helps avoid poor installations.
Financing options: Be cautious about newer financing options such as Heat as a Service, Third Party Ownership and Property Linked Finance. Research shows they can create difficulties when selling your home, so consider adding to your mortgage instead if needed.
Performance monitoring technology: You can request performance monitoring technology with your installation. This gives you reassurance that the system is working efficiently and helps check running costs.
Smart tariffs (and battery storage where suitable): Explore smart tariffs from your energy supplier, particularly with battery storage. These allow you to use cheaper energy at off-peak times and reduce costs.
Government funding schemes: Check your eligibility for the Boiler Upgrade Scheme grant or loan by visiting gov.uk. This support can reduce the upfront costs.
Reliable information and due diligence: You can get several quotes from MCS certified installers and look for reliable information from trusted sources. This helps you understand installation disruption, performance and long term running costs.
About Which?
Which? is the UK’s consumer champion, empowering people to make confident choices and demand better. Through our research, investigations and product testing, we provide trusted insight and expert recommendations on the issues that matter most to consumers.
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