Heat pumps will be the primary technology for decarbonising the way we heat our homes, but currently the UK lags behind European and American peers – frequently finishing ‘bottom of the league table’ for the number of heat pumps installed.

This report by E3G considers a range of viable routes to market for heat pumps and sets out the financial offers needed to underpin them

Summary of Recommendations

1. Lower the cost of electric heating, and of electricity more generally, to improve heat pump running costs.

2. Support the development of new business models for heat pump purchase, including leasing and service options and more flexible tariffs.

3. Unlock private and public finance options, such as property-linked finance, demand aggregation, and attractive retrofit loan offers.