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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.

Our analysis and modelling looks at how changes in electricity prices would affect the cost of switching to a heat pump in Scotland

Summary

  • If the UK Government introduced policy changes to reduce electricity costs, almost all homes in Scotland (95%) would see a lower energy bill by fitting a heat pump.
  • Under current energy prices, roughly 25% of all homes in Scotland would make energy bill savings when moving to a heat pump.
  • Time-of-use tariffs also improve the running costs for heat pumps in this modelling, lowering energy bills further.

Context

The Scottish Government is proposing to introduce legislation, through the Heat in Buildings Bill, for how we heat our buildings and how energy efficient the buildings need to be. Proposals include a requirement for the installation of zero-emission heating systems (like heat pumps) in a set period after the purchase of some homes. The earliest this could take effect is 2028, although the date will depend on the decisions of the Scottish Parliament and Government. To be on course to reach net zero by 2045 in Scotland, this requirement would need to come into effect well before 2035 to allow the heat pump installation industry in Scotland to grow consistently.

The affordability of cleaner heating systems for consumers will be a key factor that influences decisions about when this policy is introduced. WWF Scotland and Nesta therefore worked together on new analysis and research to explore the costs to households of fitting a heat pump in 2028.

Authors

Robin Parker

Robin Parker

Robin Parker

Mission Manager (Scotland), sustainable future mission

Robin manages Nesta's work in Scotland on the Sustainable Future Mission, focused on making it easier for households to end their contribution to climate change.

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Fabrice Leveque

Fabrice is climate and energy lead at WWF Scotland, leading the organisation’s advocacy work to tackle the climate emergency, with a particular focus on decarbonising Scotland’s energy…