In the U.K., lower-income households could be facing some of the highest costs when switching to cleaner home heating.
A new report argues that current government incentives may be making that problem worse, because the strongest support goes to a technology that many lower-income homes can't use easily.
Here's what to know
Lower-income households may face clean-heating switch costs that are almost five times those of higher-income families, according to findings from ADE: Demand covered by The Energyst.
In ADE: Demand's example of a typical smaller home, the sticker prices are fairly close: £9,300 for a heat pump and £10,200 for a heat battery. After current government grants are applied, though, the household share comes to £1,800 for a heat pump versus £7,700 for a heat battery.
The type of house may help explain some of the divide. Over half of the lowest-income households live in flats or smaller homes, while fewer than one in five of the highest earners do. In those lower-income homes, heat pumps can be harder to install because outdoor space may be limited and planning or leasehold rules can create obstacles.
The outcome is a £5,900 gap in what households are expected to pay upfront.
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More background
For a family in the second-lowest income bracket, ADE: Demand said the £1,800 needed for a heat pump would equal a little over 10% of annual income after housing costs, while the £7,700 needed for a heat battery would consume nearly 45%.
The challenge is even greater for renters, who often have little control over the heating system chosen for their homes. Nearly two-thirds of social renters and 60% of private renters live in properties where heat pumps may be impractical.
What's being done?
To reduce the disparity, ADE: Demand is urging policymakers to change course. The group wants ministers to increase heat-battery grants so they match the £7,500 support available for heat pumps.
It also wants heat batteries to receive the same VAT relief and for the government to better model what it actually costs to decarbonize flats and leasehold homes.
Because they store electricity as heat, work with existing radiators, and do not require an outdoor unit, heat batteries may be a better fit for homes that cannot easily accommodate a heat pump. They can also charge when power is cheaper, which may help cut bills.
As Sarah Honan, head of ADE: Demand, put it: "It cannot be right that households already struggling to make ends meet are asked to pay five times more for clean heat because their home is less suited to the technology that gets the most Government support. Technical feasibility is only the first step; public policy must support households to install the heating solution that fits their home."
Where can I learn more?
For more on the costs and policy choices behind cleaner home heating in the U.K., these articles offer helpful context. They cover British home-upgrade plans, broader European heat-pump economics, and other ways households can lower energy bills.
• Across the U.K., free home upgrades could help millions cut stubborn energy bills.
• Under Britain's Warm Homes Plan, over $17B in home upgrades could make bills more affordable.
• Across most EU countries, heat pumps are cheaper than gas boilers to run.
• European households pairing EVs with heat pumps and rooftop solar can better withstand energy shocks.
• Homeowners considering a heat pump water heater face higher upfront costs but long-term savings.
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