About Nesta

Nesta is an innovation foundation. For us, innovation means turning bold ideas into reality and changing lives for the better. We use our expertise, skills and funding in areas where there are big challenges facing society.

Cost is a key issue for low-carbon heating and there are several actions the UK Government can take to make this more affordable. Low-carbon heating tends to have higher upfront costs than fossil fuel heating, but it is typically much more energy efficient.

Policy action to help with these upfront costs – including subsidies, access to finance and support for cost-reducing innovation – is important, but so are reforms to reduce the cost of electricity and low-carbon heating.

Delve into our latest work on making low-carbon heating affordable, or return to the main page to explore our other policy areas.

What steps can the Government take to make heat pumps and other low-carbon heating technologies more affordable? Our research has focused on the different aspects of heat pump costs, from installation to running costs, to identify policy solutions to make low-carbon heat the cheapest option.

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What is the most effective way for the Government to offer financial incentives to go green at home? Our work has looked at how to make subsidies work better, and the case for offering government-backed loans for green measures.

Reports:

How much are households willing to pay to get a heat pump? Our research tested a range of different prices and incentives to understand at what point heat pumps become more financially attractive.

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How can the UK make electricity cheaper and generate more of it? Our work has proposed ways to lower the all-important electricity-to-gas price ratio. We’ve also considered the scope for renewable energy to move us into a world of abundant energy.