Flexibility and market evolution

This study examined options for making progress on domestic heat decarbonisation against an ongoing backdrop that most consumers in GB have not chosen to install heat pumps. The study finds that forcing consumers to do so is likely to increase costs for everyone and spark backlash against climate policy. The paper sets out the parameters for a more flexible pathway which supports technologies including hybrid heat pumps based on emissions and cost savings. The core finding is that by allowing consumers to transition more gradually to newer technologies this approach offers a lower-cost and more voter-friendly (and therefore deliverable) pathway to net zero.