Government must do more to tackle cost and other barriers discouraging consumers from switching to heat pumps and electric vehicles, Which? says
Posted by: electime 7th November 2024
Which? is calling on the government to provide more support for greener home heating and cars, as new research from the consumer champion shows cost and other barriers are putting people off making the switch.
The consumer champion’s annual sustainability tracker found a range of barriers deterring households from buying heat pumps and electric vehicles (EVs) – from cost to low awareness and insufficient information about heat pumps, to concerns about availability and reliability of the UK’s EV charging network.
The Which? survey, now in its third year of tracking consumer attitudes to sustainability, found 71 per cent of homeowners who knew what heat pumps were said they were too expensive for them to install. This figure has remained static, despite the government significantly increasing the grant available through the Boiler Upgrade Scheme in 2023.
The median price for installing an air source heat pump is just under £13,000, according to data collected from installers under the government’s Boiler Upgrade Scheme (BUS). With a grant, the overall cost can be lowered by £7,500. The average cost of installing a standard combi boiler is £2,597 based on all models on Which?’s website. The cost of installing a heat pump varies based on the heat source and any additional changes that are required to the heating system and insulation.
Which? found ownership and awareness of heat pumps remains relatively low. Just two per cent of homeowners own a heat pump and just over half (55 per cent) of homeowners are aware of what they are. Of those, 54 per cent said that they would not consider installing one.
Heat pump ownership is rising but from a low base. From January to July 2024, more than 30,000 heat pumps were installed in homes and small businesses across the UK, which is a 45 per cent increase compared to the same period in 2023, according to MCS, an organisation that sets and maintains standards for certification of low carbon heating systems and installers.
Encouragingly, younger homeowners are considerably more likely than older ones to have installed a heat pump or be seriously considering making the switch.
Among those who do not have a heat pump installed, 18 to 34 year olds are three times more likely to definitely consider installing one (15 per cent compared to five per cent of over 55 year olds).
The number of people who own EVs has increased from three per cent in June 2022 to six per cent in June this year. However, the number of drivers saying they are unwilling to buy one has almost doubled from one in five (20%) in 2022 to two in five (39 per cent) now.
Some people remain open to buying them in the future but are also put off by the cost. Currently, around two-thirds (64 per cent) of non-EV drivers said high prices would stop them from buying one. According to Which?’s pricing data and based on the models the consumer champion has tested, the average new EV is £47,251.19, almost £10,000 more than a non-electric equivalent (£37,611.32) in October 2024.
However, prices of new and second hand EVs are falling, with some second hand EVs now reaching price parity with petrol and diesel equivalents.
The research also revealed significant concerns about EV charging. Half of consumers (54 per cent) are concerned about the distance that can be covered in a single charge while a similar proportion (52 per cent) are worried about the availability of public charge points.
In the recent budget, the government allocated £3.4 billion to the Warm Homes Plan, including £1.8bn to support fuel poverty schemes. The government described this as an ‘initial’ commitment. It also introduced tax incentives to encourage people to buy electric vehicles.
Which? is now calling on the government to support consumers in the transition from gas and oil heating to electrified heating, such as heat pumps. The government’s Warm Homes Plan must include measures to support consumers with the high upfront costs of installing a heat pump, through new financial products that make the transition more affordable and direct support for low income families.
The government should also raise awareness among consumers and ensure they have access to good quality information and advice, whilst improving access to reliable and qualified installers by setting a date for the mandatory certification of installers.
Which? is also calling on the UK and devolved governments to provide clear and consistent support for the transition to EVs to give businesses and consumers the confidence they need. This should ensure that the market continues to drive down the cost of new and second hand EVs.
However more work will be needed to ensure the charging infrastructure works for consumers. The UK government should monitor the consumer experience of public charge points to make sure charge points are meeting requirements on reliability and easy payment options. The UK and devolved governments should also support the roll out of the chargepoint infrastructure, ensure access for disabled drivers, and promote tariffs that make it cheaper to charge your car overnight and when electricity demand is low.
Sue Davies, Which? Head of Consumer Rights and Food Policy, said:
“There are encouraging signs in this year’s Which? sustainability tracker, such as a slight increase in ownership of electric vehicles (EVs) and an appetite among younger homeowners to switch to heat pumps.
“However, it’s clear that there is work to be done to address the barriers preventing consumers from switching to the more sustainable alternatives that will help the UK achieve its net zero goals. As well as cost, these include low awareness and insufficient information about heat pumps and a lack of availability and reliability of EV charging stations.
“The Warm Homes Plan could be a game-changer if it helps people with the high up-front costs of heat pumps and the government should also set a date for the mandatory accreditation of heat pump installers.
“Improving the availability and experience of public charge points for electric vehicles is essential if the government wants to encourage people to switch from petrol cars.”
