The future of Britain’s green home revolution could hinge on one thing – the price of electricity.
A new report from Mitsubishi Electric warns that unless power costs are reduced, millions of homeowners will be unable or unwilling to make the switch from gas boilers to low-carbon air source heat pumps.
Despite growing public concern about climate change and strong interest in greener heating, electricity remains far more expensive than gas, creating a financial barrier that could derail the country’s net-zero ambitions.
Experts say rebalancing energy prices is now essential to make clean heating affordable for everyone.
Homeowners want to go green — but can’t afford it
Public interest in cleaner heating is strong, as shown in a report.
According to Mitsubishi Electric’s Heat Pumps: Accelerating the Switch report, more than a third of UK homeowners would consider installing a heat pump if electricity were cheaper than gas. Yet only 6% currently use one, despite 80% saying they care about the environment.
“If I could run a heat pump for the same cost as gas, I’d make the change tomorrow,” said Amanda Lewis, a homeowner from Manchester. “But electricity is just too expensive – it feels like you’re being punished for going green.”
The energy pricing problem
The issue lies in how energy is taxed and priced. Electricity carries far higher environmental levies than gas – around £140 a year for the average household.
That means even though heat pumps are typically three times more efficient than gas boilers, they can still cost more to run.
“Public willingness to cut emissions risks being outweighed by the reality of energy bills,” said Russell Dean, deputy divisional manager at Mitsubishi Electric. “If we want people to switch, electricity pricing must be rebalanced.”
Mitsubishi Electric’s modelling suggests that a modest 7% drop in electricity prices could trigger a 9% increase in annual heat pump installations, showing how sensitive adoption is to running costs.
Calls for reform to unlock the switch
The company is calling on the government to decouple electricity prices from gas markets, remove green levies from electricity bills, and expand support schemes like the Boiler Upgrade Scheme.
These measures, it says, would help the UK meet its target of 600,000 heat pump installations per year by 2028.
“The technology is ready and installers are trained,” said George Clarke, architect and Mitsubishi Electric Ecodan Ambassador. “But until electricity prices come down, most people won’t take the plunge. The system currently rewards carbon, not sustainability – and that has to change.”
With 93% of heating engineers now qualified to fit heat pumps, industry experts agree the UK is technically ready for the switch. The only thing holding it back is the cost of keeping the lights – and the heat – on.