High electricity bills are stopping homeowners going green

"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."

"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 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.""

Electricity prices in the UK remain substantially higher than gas, creating a financial barrier to switching to low-carbon heating. Many homeowners express strong environmental concern and interest in cleaner heating but uptake of air source heat pumps remains very low. Higher environmental levies on electricity—about £140 a year for the average household—mean heat pumps can cost more to run despite being roughly three times more efficient than gas boilers. Personal accounts report that homeowners would switch if running costs matched gas, but current bills make the change unaffordable for many. Modelling indicates that a modest reduction in electricity prices and rebalanced taxation could make clean heating affordable and increase adoption, supporting net-zero ambitions.

Read at Homebuilding