Households can still claim grants worth up to £7,500 for the installation of a heat pump, and Labour is looking at expanding grants to include different types of models such as “air-to-air” heat pumps, which can also function as air conditioning.
Richard Tice, Reform UK deputy leader, said: “Another net zero policy unravels as heat pumps are shown to be an expensive con. People have been deliberately wronged in another major mis-selling scandal.”
Even with a grant, a typical heat pump costs £13,000 to install – and according to YouGov polling, most households are reluctant to pay an additional £5,500 themselves.
Findings from the meeting state that public perception of heat pumps is “fragile”. A separate government report published last week found that public acceptance of heat pumps has slumped this year.
Around half of people are “not very or not at all likely” to install either an air source heat pump or ground source pump, according to the Department for Energy Security and Net Zero (Desnz).
Mike Foster, of the Energy and Utilities Alliance, said: “Apart from the high initial cost of fitting a heat pump, consumers using a standard tariff face higher running bills than a gas boiler too. It should not be a surprise to find that asking consumers to pay more for the same service, heating a home, is not a popular option. Something needs to change.”
The Government said the findings from the roundtable discussion chaired by Prof McLean “are not statements of government policy”. They instead represent the combined views of roundtable participants.
The report was published as Mr Miliband was forced to back down from plans to impose regional electricity pricing on Britain, which some feared would have left households in the south facing higher bills.
A spokesman for Desnz said: “The British people are showing record demand for heat pumps, which enable families to save around £100 a year by using a smart tariff.
“We are supporting industry to develop financing models that can remove the upfront cost entirely, and consulting on new approaches, such as heat pump subscriptions, to help more households make the switch to cleaner heating in a way that works for them.
“And we are stepping up support through our Warm Homes Plan, which will help make homes cheaper and cleaner to run with upgrades from new insulation to solar panels and heat pumps.”
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