NEARLY every home in Scotland would see lower energy bills after installing a heat pump if the UK Government reformed electricity pricing, according to new research.
The charities WWF Scotland and Nesta Scotland are calling on the UK Government to introduce pricing changes which would make heat pumps a more attractive option.
According to research conducted by the charities utilising data from Cambridge Architectural Research, only around 25% of homes in Scotland would currently see lower energy bills after installing a heat pump.
In response, they are calling on the UK Government to adjust the levies applied to electricity bills and reform the market to prevent gas-fired power stations dictating the wholesale price.
The research also looked at what energy bills might look like in Scotland by 2028, the year in which proposals requiring some homebuyers to install heat pumps within a set period may kick in.
If the UK Government reformed the energy market, 95% of homes installing heat pumps would see a saving of around £566 per year.
So called “time of use” tariffs were also floated. These tariffs reward consumers with cheaper prices if they use energy at off-peak times.
Modelling which warmed homes with heat pumps a little more during off-peak periods and a little less during peak times reduced energy bills by a further 10% on average.
The charities also said the Scottish Government would have to rollout its Heat in Buildings Bill no later than autumn this year if key climate targets were going to be met.
“It’s still early days in Scotland’s heat transition but this research shows that with the right policies, heat pumps can be the lower bills option for virtually all homes when regulations requiring the switch to fit them should begin,” said Fabrice Leveque of WWF Scotland.
“The Scottish Government has failed to meet nine out of the last 13 annual climate targets.
“To make up for this, the immediate roll out of policies such as cleaner heating is crucial. That’s why the Heat in Buildings Bill must be introduced no later than the autumn this year to make sure it can regulate for cleaner heating and energy efficiency later this decade.”
It comes after the CEO of Octopus Energy said Scotland could have the “cheapest electricity in Europe” if the UK switched to regional pricing.
Robin Parker of Nesta Scotland added that bringing down costs would be imperative to persuade people to switch to cleaner energy systems.
“The UK currently has higher electricity prices than any EU country,” he said.
“Bringing down electricity costs should be a priority for the new UK Government and it is one of the most important things it can do to help enable people in Scotland to switch to clean heating.
“This research shows that doing so would mean energy bills would fall for virtually everyone who switches to a heat pump.
“Linking heat pumps to home purchases would help drive investment in clean heating and help increase Scotland’s pace on home decarbonisation.
“The sooner that we have the regulations in place, the longer that homeowners and industry will have to prepare for the changes – which is why the Scottish Government should press forward with introducing the Heat in Buildings Bill in Holyrood.”
