Lower bills would drive heat pump sales
29th October 2025
UK: A new report from Mitsubishi Electric reveals that more than a third of UK homeowners would switch to heat pumps if electricity cost the same as or less than gas.
The report also reveals that higher electricity prices correlate with fewer heat pump installations, indicating a 9% increase in heat pump installations each year if energy costs were rebalanced – a significant contribution towards achieving net zero emissions by 2050.
Despite 80% of UK homeowners saying they care about climate change, heat pump adoption in UK homes remains critically low, says Mitsubishi Electric, with only 6% making the switch.
According to Mitsubishi Electric’s latest report, Heat Pumps: Accelerating the Switch, one of the biggest barriers isn’t technology or awareness, but the cost of electricity.
For many UK households, switching to a heat pump isn’t a question of willingness, but the affordability of electricity, Mitsubishi maintains. The company argues that the current energy pricing structure actively penalises greener choices by loading environmental levies onto electricity. These levies add around £140 a year to the average household electricity bill, while gas tax is just £50.
Even though heat pumps are up to three times more efficient than a gas boiler, Mitsubishi Electric admits that they can still cost more to run.
The new research of 2,000 UK homeowners from Mitsubishi Electric and Opinion Matters shows that 33% of homeowners would consider switching to a heat pump if electricity cost the same or less than gas. But for many, the bar is even higher: 15% of those surveyed said they would only consider switching if their annual energy bill was at least £500 cheaper.
New academic modelling in the report by Dr Ed Manderson, lecturer in the department of economics at the University of Manchester, reveals that an increase in electricity pricing clearly correlates with a decrease in heat pump installations.
A 7% fall in electricity prices (equivalent to a 10-point drop in the price index) would lead to about a 9% rise in domestic heat pump installations. The same trend appears in the commercial market: rebalancing electricity prices could boost uptake by around 9%, of which the true effect across the whole market would likely be considerably larger.
“Our research reveals a critical tipping point in public sentiment – the desire to reduce emissions is being outweighed by the reality of energy bills,” commented, Mitsubishi Electric’s deputy divisional manager, Russell Dean.
“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.
Mitsubishi Electric’s own research of residential and commercial heating installers also shows that they are ready to help accelerate the shift, with 93% believing they have the skills and experience to install heat pumps – an increase from 61% last year.
In a call for action, Mitsubishi Electric is calling for a rebalance of green levies and the decoupling of electricity from volatile gas prices. It also calls for an expansion of support initiatives like the Boiler Upgrade Scheme.
