Although 80% of homeowners say they care about climate change, only 6% have installed heat pumps. The report identifies electricity pricing as the key barrier, with environmental levies adding around £140 to annual electricity bills compared to £50 for gas. This makes heat pumps, despite being up to three times more efficient, more expensive to run.

Surveying 2,000 homeowners, Mitsubishi Electric and Opinion Matters found that 33% would consider switching if electricity matched or undercut gas prices, while 15% would only switch if annual energy bills dropped by £500 or more. Academic modelling by Dr Ed Manderson of the University of Manchester suggests a 7% drop in electricity prices could lead to a 9% rise in domestic heat pump installations. Similar gains are projected for the commercial sector.

Installer readiness is also rising, with 93% of heating professionals saying they are equipped to install heat pumps, up from 61% last year.

Russell Dean, Deputy Divisional Manager at Mitsubishi Electric, said: “The desire to reduce emissions is being outweighed by the reality of energy bills. Reforming electricity pricing is essential to unlocking low-carbon heating.”

Architect and Ecodan Ambassador George Clarke added: “The technology is ready, and installers are ready to make the switch from gas heating to heat pumps, but the inflated price of electricity remains a major issue for both consumers and businesses.”

The report calls for urgent policy reform, including rebalancing green levies, decoupling electricity pricing from gas markets, and expanding financial support schemes such as the Boiler Upgrade Scheme, which remains unknown to one in three homeowners.

Without reform, the UK risks missing its target of 600,000 annual heat pump installations by 2028 and the Climate Change Committee’s recommendation for half of UK homes to be heated by heat pumps by 2040.