UK consumers say they have a lack of understanding about heat pump technology

‍In a survey of more than 1,000 mortgage homeowners, outright homeowners and aspiring homeowners, less than a third (31%) said they are familiar with heat pumps and 18% of respondents said they don’t trust the technology.

Despite a desire to adopt low-carbon technology in their homes, UK consumers are confused about how heat pump technology works.

• 69% said they don’t know enough about heat pump technology
• 36% said they would need to borrow money to fund low-carbon tech in the home
• 8 out of 10 would consider a long-term fixed-rate mortgage that helps them fund low-carbon tech and rewards them for doing so

The research, by Energy Systems Catapult in partnership with Heatio and Perenna, is published in Heat Pump Week, a campaign to highlight the importance of heat pump technology in order to decarbonise the UK’s homes to reach net zero by 2050.

‍Lack of affordability, finance options and lack of knowledge and trust in heat pump and solar panel technology, the installation process and proposed benefits are the main barriers to installation.

More than a third (36%) said they would need to borrow money to install the technology, while the majority (83%) of consumers said they would consider financing low-carbon technology in their homes through a long-term fixed-rate mortgage that rewards energy improvements with a lower interest rate. The appeal of a long-term mortgage proposition was greater to consumers aged under 55, due to the 20+ term being in line with current mortgage terms, according to the survey.

‍Unsurprisingly, outright homeowners without a mortgage were most likely to pay for low-carbon technology outright (42%) and the appeal of long-term green mortgages increased with income and was significantly higher among those with a higher income.

‍The research revealed consumers are keen to make heating changes in their homes with saving money (65%) as the main driver for considering low-carbon technology, followed by environmental benefits (49%), and increasing energy costs (47%).

‍Protection from potential interest rate increases was the most appealing factor of long-term fixed-rate mortgages (25%). This was followed by the stability of mortgage repayments over time (17%) and the ability to budget monthly payments (15%).

‍For the full article, visit Heatio here

Image credit: Heatio

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