Heat pump confusion costs homeowners time and money

The public is still lost on heat pumps. A poll by edie.net, as reported by edie.net, found that most UK households cannot accurately estimate the upfront cost or potential savings of a heat pump. This is not abstract confusion, it costs people real money.

What the poll reveals about confusion

The survey shows that fewer than one in five adults feel confident about heat pump costs. Many overestimate installation prices by thousands of pounds, while others underestimate the running savings. The result is a stall in uptake, even as the government pushes for 600,000 installations a year by 2028. The Boiler Upgrade Scheme, which offers a flat £7,500 grant for an air-source heat pump, remains underused, only about a third of the allocated budget was claimed in the first year. That is a £100m underspend, according to documents seen by The Guardian.

Real costs for a typical 3-bed semi

Installing an air-source heat pump in a typical 3-bed semi costs between £7,000 and £13,000 before the grant. After the £7,500 deduction, the homeowner pays roughly £0 to £5,500. Compare that to a new gas boiler at £1,500 to £3,000. The gap is narrowing, but it still exists. The catch is that heat pumps work best in well-insulated homes. If your loft insulation is below 270mm or your walls are uninsulated, you will need to spend extra, typically £1,000 to £3,000, to bring the EPC up to band C or above. The Energy Saving Trust estimates that a heat pump in a typical semi-detached home with good insulation can save around £100 to £300 a year on heating bills compared to a gas boiler. At those savings, the payback period after the grant is between 5 and 15 years, depending on the starting efficiency of the home.

Financing options beyond the grant

Many homeowners do not know that the Boiler Upgrade Scheme is not the only route. Ofgem also administers the Energy Company Obligation (ECO4), which can fully fund heat pumps for low-income households in poorly insulated homes. The Great British Insulation Scheme offers partial funding for insulation upgrades that improve heat pump performance. Some local authorities, such as those in Scotland and London, run additional top-up grants. Yet the poll shows that awareness of these programmes is minimal. The government has not run a national advertising campaign since 2022, and the application process varies by scheme. Homeowners on standard variable tariffs can check eligibility on gov.uk, but the system remains fragmented.

What this misses, the EPC reality

But the confusion goes deeper. The poll does not address the fundamental barrier: most UK homes have an EPC rating of D or below. A heat pump installed in a draughty Victorian terrace will cost more to run than a modern gas boiler. The official advice from the Energy Saving Trust is to improve insulation first. That means topping up loft insulation to 300mm, filling cavity walls, and sealing floorboards. A typical package costs £2,000 to £4,000 and can save £200 a year on heating. Only after those steps does a heat pump make financial sense. The government’s own heat pump rollout targets assume that 80% of homes will need some insulation upgrade first. That is a £20bn national retrofit challenge that the current grant system only partially addresses.

What homeowners should do now

Check your EPC online at gov.uk. If it is below band C, book a retrofit assessment from a certified PAS 2035 installer. Apply for the Boiler Upgrade Scheme through a registered installer, the grant is deducted at point of sale, not claimed later. The scheme runs until 2028, but budgets are capped annually. Households on low incomes should contact their energy supplier about ECO4 funding. Do not wait for a national campaign that may never come. The information exists, but you have to dig for it. The clock is ticking on both your heating bill and the planet.