According to recent research by WWF Scotland and Nesta Scotland, nearly all households in Scotland that adopt heat pumps could see reduced energy costs if the UK government revises electricity pricing structures. The research highlights the importance of policy changes at both the Scottish and UK government levels to help achieve climate goals. Specifically, it calls for the UK Government to reform electricity pricing to make environmentally friendly heating solutions more affordable, and for the Scottish Government to advance its Heat in Buildings Bill to support industry growth.

The study, conducted using data from Cambridge Architectural Research, analysed energy costs for homes that switch to heat pumps and other low-carbon technologies. Currently, about 25% of Scottish homes would benefit from lower energy bills after installing a heat pump. This number could increase significantly if heat pumps were installed in all suitable homes across Scotland, potentially lowering energy bills for approximately 600,000 homes.

The research also projected energy costs for 2028, considering potential UK Government reforms, such as adjusting electricity market levies and removing the influence of costly gas-fired power stations on wholesale electricity prices. If these reforms are implemented, it is estimated that 95% of homes with heat pumps could save an average of £566 annually on energy bills. Even in a more conservative scenario, where price reductions are less dramatic, 85% of homes would still benefit.

Additionally, the research explored the impact of time-of-use tariffs, which incentivise energy use during off-peak hours. Homes using heat pumps could reduce their bills by an additional 10% on average by taking advantage of these tariffs.

WWF Scotland and Nesta Scotland stress the urgency of policy action. The Scottish Government has missed several climate targets, and the immediate rollout of cleaner heating technologies is seen as essential to getting back on track. The Heat in Buildings Bill is highlighted as a critical step that should be introduced by autumn to ensure regulations for cleaner heating and energy efficiency are in place later this decade.

Reducing electricity prices is also a key priority for the UK Government to enable more households to switch to clean heating. Tying heat pump installations to property transactions could further accelerate the adoption of clean heating technologies and support Scotland’s efforts in reducing home carbon emissions.

Original Story by Scottish Housing News