Many of us probably don’t give much thought to the efficiency of our home heating system. But we really should.

Bad installations and inefficient systems are damaging to the planet – they use more fuel than they need to, resulting in more carbon being released into the atmosphere.

This isn’t just about greening the nation’s heating supply; it’s also an issue of fuel poverty and social justice. Poorly installed heating systems of all kinds – boilers, direct electric, heat pumps – impose huge costs on households.

Many homes already have gas boilers that are too large and set to inefficient settings, making the current energy price crisis even more painful. The pivot to low carbon heating is a chance to switch to more efficient, cheaper heating that saves people money.

One of the most widely used arguments against heat pumps is that they don’t work very well. While this isn’t true in general, it is true for a small minority of poorly installed systems.

We need to overcome this PR problem if we want more people to opt for heat pumps and other green heating solutions. And that means doing more to ensure heat pumps are well installed, efficient, and that they keep energy bills as low as possible.

The origins of the efficiency problem

So how did we get here? And why hasn’t more been done to fix the problem?

The market hasn’t been able to address inefficient home heating for two reasons. First, most customers simply don’t know how efficient their system is or how to monitor efficiency. They just notice their energy bill going up without knowing why.

Second, people are generally more swayed by the upfront cost of things – say, the cost of buying a new boiler or heat pump – than by the ongoing month-to-month costs. Because of this, efficiency just isn’t top of the agenda for many of us.

Nesta’s recent analysis suggests that running costs make up well over half of the lifetime cost of a heat pump. But many people still choose systems which are cheaper upfront but less efficient and more expensive in the long run.

This adds up to extra costs for households already struggling during a cost of living crisis. If we’re not careful, heating systems could end up like Nespresso machines or razor blades: buy them cheap, get locked into expensive ongoing costs.

Searching for an efficiency fix

So what can be done to protect customers from falling into an inefficient heating trap?

We need a mix of both voluntary measures – getting companies to take action on efficiency because it’s good business – and regulatory measures – legally enforcing standards on efficiency.

One option is for heat pump manufacturers to share their systems’ efficiency data so that customers can see if they’re losing money to a poor installation. In the same way they can find out their broadband speed, people could easily check out the efficiency of their heat pump.

But this system only works if it’s embraced by manufacturers and installers, easy for users to navigate, and actionable when things go wrong.

Another approach is to regulate more explicitly. The UK government is planning to oblige boiler manufacturers to also sell a quota of heat pumps. They could also take action on efficiency to ensure manufacturers don’t meet this quota with poor quality heat pump systems.

The government could even go one step further and set minimum efficiency standards for heat pump systems, with penalties for manufacturers who fail to meet them.

But regulation is not a magic bullet – law changes can be expensive and complicated, and it’s often hard to persuade governments to act.

Another option is to introduce standard checks on installations to make sure they’ve been fitted properly, and to provide a centralised complaints process when things aren’t working as they should.

We could even explore new approaches to how we pay for heating. Under ‘heat as a service’ models, customers are only charged for how warm their house is, not the energy they use to get there.

This means efficient and inefficient systems cost consumers the same amount, with the increased cost of inefficient systems covered by suppliers. This would definitely put pressure on suppliers to make systems more efficient and reduce energy use.

Ultimately, the solution to the nation’s inefficiency woes will likely incorporate a combination of these approaches.

It’s not an easy problem to solve.

What’s clear though is that we need action, and we need it now. The heating industry and government need to work together to tackle this issue before it turns into an even bigger problem.

Because when it comes to a more sustainable future – both for people and planet – efficiency is a very big deal.