Heat pumps could benefit from reduced electricity prices

In the United Kingdom, households that invest in a heat pump to replace a gas boiler could benefit from reduced electricity prices. The government is considering exempting households that install heat pumps from part of the excise duty. The rollout of heat pumps is one of the pillars of the UK's low-carbon strategy. However, the number of installations (60,000 in 2024) is well below the government's target (600,000 heat pumps per year). Electricity prices are discouraging households from switching from gas to electricity, despite the high efficiency of heat pumps.