New report outlines the case for hybrid heat pumps in decarbonisation plans

A new report by Stonehaven has highlighted the role hybrid heat pumps could play in accelerating the UK’s heat transition, showing they could reduce system costs, ease pressure on electricity networks and offer a practical route to decarbonising homes where full electrification is not cost-effective or practical.  

The report, The heat decarbonisation two-step, highlights the significant cost advantage of installing a hybrid heat pump, which is around £2,700 cheaper than a standalone heat pump in nearly a fifth of all English homes. 

The report also argues that the biggest lock-in risk is not the use of hybrid systems themselves, but the continued lack of affordable and practical low-carbon options for households. Without credible routes to cut emissions now, many homes will remain locked into conventional gas heating for longer. 

It also quantifies some of the wider system benefits of deploying hybrid heat pumps in these homes, which include: 

• £830m per year in levelised reinforcement savings.
• Over £21bn of avoided distribution capital expenditure through to 2050.
• Over £9bn of reduction in consumer charges through to 2050.

The full report is sponsored by Cadent, the UK’s largest gas distribution network. Cadent is joining Stonehaven in outlining six policy recommendations made within the report. Among them, the report suggests Government should: 

• Expand Boiler Upgrade Scheme eligibility to include hybrid heat pumps.
• Align gas and electricity network planning.
• Tighten performance requirements and reform the spark gap to maximise emissions savings.

The report highlights the Netherlands as a comparable case study for the UK to follow, given the similarities in country-specific factors, particularly their reliance on gas.  

In the Netherlands, deployment of hybrid heat pumps has demonstrated significant gas savings. One trial, for example, shows an average gas saving of almost 75%, with hybrid systems being recognised as a source of greater system flexibility. Stonehaven and Cadent are encouraging UK Government to take these findings into consideration when laying out its decarbonisation strategy. 

Samuel Chivers, Associate Director for Energy at Stonehaven, said:  

“Decarbonising heat in the UK will require solutions that reflect the diversity of homes across the country. Our analysis shows that hybrid heat pumps could play an important role, cutting emissions while lowering installation costs and easing pressure on networks. 

“In almost a fifth of English homes fully electric solutions are not yet the most cost-effective option for heat decarbonisation. For these homes, with the right policy framework, hybrids can offer a practical pathway to accelerate the transition.” 

Dr Angela Needle, Director of Strategy at Cadent, added:

“The debate on low-carbon heating often assumes a one-size-fits-all solution, but the evidence shows that households and housing stock are far more diverse. Hybrid heat pumps offer a pragmatic route to reducing emissions now while managing costs and system pressures. 

Read the full report here.