This event, co-hosted by Nesta and Carbon Trust, brought together experts to discuss the transition to electric heating in UK homes. The discussion acknowledged the challenges inherent in this transition, primarily the higher upfront costs of heat pumps compared to gas boilers. Still, the panellists emphasised that heat pumps present a compelling case for long-term cost savings and environmental benefits. They highlighted that a move away from relying on gas, largely imported and subject to global price fluctuations, would significantly enhance the UK's energy security.

The panellists suggested that electrifying the heating system, primarily through heat pumps, is crucial for the UK to achieve its net-zero targets. They explained that heat pumps offer a more efficient way to heat homes compared to gas boilers – a heat pump can convert 1 kilowatt hour of electricity into 3-5 kilowatt hours of heat. This efficiency translates into lower running costs for consumers in the long term, even with the current electricity prices. In fact, Octopus Energy stated that their customers using heat pumps with a specialised tariff are already saving £350 annually on their heating bills compared to those using gas boilers.

However, the panellists recognised that the initial cost of purchasing and installing a heat pump is a significant obstacle for many homeowners. To make heat pumps more accessible, they urged the government to consider revising the current electricity taxation system. Specifically, they recommended moving the environmental and social levies away from electricity bills and incorporating them into general taxation or transferring them to gas bills. This change would ensure a more transparent price comparison for consumers, reflecting the environmental impact of each heating source.

The panellists expressed optimism that the cost of heat pumps will decrease over time due to technological advancements and market forces. They drew a parallel with the offshore wind industry, which has seen a dramatic reduction in costs over recent years, suggesting that similar progress could occur in the heat pump market as the industry matures and production scales up.

The discussion also highlighted the role of industry in smoothing the transition to electric heating. Panellists urged the industry to focus on simplifying the installation and maintenance processes for heat pumps, making them a more user-friendly option for both installers and consumers. They advocated for a 'plug-and-go' approach, simplifying the user interface and ensuring the systems are easily managed once installed.

Beyond addressing cost barriers, the panellists stressed the importance of developing heat pump designs to suit diverse architectural styles. This is particularly relevant for older properties or homes with limited space.

While acknowledging that challenges remain, the panellists expressed optimism about the future of electric heating, particularly heat pumps, in the UK. They pointed to the UK’s successful transition to renewable electricity generation, proving its capacity for system-wide change in the energy sector. The significant cost reductions achieved in other renewable technologies, like offshore wind, fuelled optimism for similar advancements in the heat pump market. The panellists concluded on a hopeful note, believing that with the right policy support, industry innovation, and consumer education, heat pumps can become a key driver in decarbonising UK homes.