As the UK readies to significantly cut carbon dioxide emissions through its Heat and Buildings Strategy, new research predicts that the cost of heat pumps could fall by as much as 40% in the next ten years.
The report from the energy research and consulting company Delta-EE suggests nearly 20% of that cost reduction is driven by the competition that will make companies lower their prices.
The cost reduction trajectory highlighted in the research’s optimistic scenario is forecast to reduce the marginal cost of a heat pump compared to a gas boiler to around £4,000.
The research suggests reaching a 25-50% cost reduction as proposed in the government’s strategy is unlikely to be met especially by 2025.
Lindsay Sugden, Head of Heat at Delta-EE, said: “While overall the grants announced in the Heat and Buildings Strategy are a step in the right direction to decarbonising a crucial area in the UK’s overall emissions, these proposals are not sufficient to achieve the government’s decarbonisation goals.”