According to an industry trade body, rural households could face a rise of more than 70% in their heating costs if they comply with the government’s net zero targets by shifting to heat pumps.
The Energy and Utilities Alliance (EUA) provided data suggesting that the yearly cost to run a heat pump for these homes surpasses the cost of a conventional oil boiler by over 70%.
For instance, the average energy needed to heat a rural property for one year, approximately 9,894 kWhs, would cost around £1060.20 if using a heat pump, in contrast to the £617.81 cost for an oil boiler. This denotes a 71.5% cost difference.
As a part of the effort to meet Net Zero objectives, the government plans to install 600,000 heat pumps annually by 2028, phase out new oil boilers by 2026, and add eight million electric vehicles to the UK’s roads by 2030.
These proposals have caused concerns among rural populations, who are typically off the gas grid and reliant on oil heating. The worry is that their outdated local infrastructure might not be capable of managing the abrupt increase in electricity demand.
During a House of Commons session on Tuesday, Sir Bill Wiggin, MP for North Herefordshire, expressed that the limited infrastructure in rural areas makes heat pump installations both impractical and economically unfavourable for every household.
He noted that many rural homes, especially older or listed buildings, are not equipped to house these systems.
The financial implications of such an upgrade are also considerably higher compared to maintaining conventional boilers. A replacement oil boiler typically costs around £2,500, while heat pumps are priced at around £13,000, as per EUA’s figures.
To alleviate the financial burden of switching to alternative heating methods, the government has introduced grants ranging from £5,000 to £6,000 for households to buy and install a heat pump. Supporters argue that these prices will decrease as the industry expands.
However, the initial roll-out of the programme saw fewer than 10,000 heat pump installations, a number significantly below the target of 30,000.
Due to the tepid response, around £90 million in unused subsidies are expected to be returned to the Treasury.
Mike Foster, the CEO of EUA, has expressed his concern over the government’s pledge to prohibit the replacement of broken boilers with new ones in off-grid homes—primarily in rural Britain—starting from 2026. Legally, residents will be obliged to install a heat pump instead. Foster stated that not many logical individuals would opt for this willingly, and the enforcement could lead to significant political repercussions.
Conversely, Charlotte Lee, the CEO of the Heat Pump Association, indicated that efforts are underway to lower heat pump costs. According to Ofgem’s Boiler Upgrade Scheme, one can acquire a heat pump for a minimum of £3,000. Lee suggested homeowners explore different options before settling on a heat pump installation.
She furthered her argument by saying that as wholesale electricity prices decrease and the burden of gas and electricity bills are re-adjusted, the operational expenses of heat pumps will significantly diminish. Lee also mentioned that a policy cost shift between electricity and gas bills could lead to a reduction in heat pump operational costs by £246 compared to gas boilers.
