How to help people choose a heat pump before their boiler fails

Comment by Danica Caiger-Smith, Insight Practice Manager on Energy Systems Catapult’s Consumer Insight Team

About one in four heating system replacements happen when people are scrambling to replace a failed boiler, though data isn’t easy to come by and estimates vary.

Confronted with what’s known as a ‘distress purchase’ they are unlikely to select a heat pump over a gas-fired boiler. Heat pumps can be more expensive, less familiar and take longer to install. With an immediate need for heating and hot water most people go with what they already know.

But what if we want a different outcome? What could we do to increase the odds that people will pick a heat pump?

Energy Systems Catapult commissioned a study to explore the consideration given to heat pumps as a replacement, during these distress situations.

Here are five actions that we think could help.

1: Allow people to secure funding while cool heads (and warm feet) prevail

The sudden shock of having no hot water and heating leaves people physically cold but mentally puts them in what is known as a ‘hot state’. It is literally harder to think. You may overlook or ignore important information. You are more likely to make decisions based on emotion. It’s harder to research your options and get to grips with unfamiliar technologies.

We could avoid this situation by allowing people to apply for and secure heat pump funding, such as the government’s Boiler Upgrade Scheme (BUS), long before their existing heating system fails.

This could be targeted at households with older boilers, perhaps through boiler insurance plans like HomeServe whose suppliers would understand a household’s current heating system and its condition. They would also have visibility of supply chain factors.

This would give people time to research heat pumps, navigate the funding application process and lock in funding for when they need it. Under current rules, you have just 120 days to install your heat pump after you’ve secured funding.

2: Encourage people to save for heat pumps

Making it easy to save for heat pumps could also help people have funds in place when the shock of a distress purchase arises. This could particularly benefit those who wouldn’t have other savings to draw on and would otherwise go into debt.

One option is to take inspiration from savings schemes like Lifetime Individual Savings Accounts (LISAs) or Help to Buy ISAs that help people plan ahead for buying a house or saving for retirement. Schemes like this could encourage people to save for a heat pump and other measures needed alongside it (i.e. any cost not covered by the BUS or similar) by adding a bonus. This bonus could then only be used when the money is withdrawn to pay for the installation of a heat pump.

3: Spec ahead of time

Another measure that could improve uptake is encouraging people to take advantage of services that allow them to assess their homes, and design and plan for a heat pump installation long before they need one. This could be built into existing boiler servicing arrangements, or could be part of a requirement when buying, selling or renting out homes with older boilers.

The plan would then be available for them to take off the shelf when they need it – reducing the stress when the situation arises.

The plan might identify other energy-saving measures they could implement, such as insulation improvements. These could be installed well in advance of a distress purchase, preparing the home for a heat pump while providing immediate benefits, such as better comfort and reduced energy bills.

This could be delivered as a ‘roadmap’ that helps households phase home improvements, as suggested by my colleagues Kat Young and Fay Holland in their recent proposal on the next generation of retrofit funding schemes.

4. Boost consumer confidence

A key factor that makes a like-for-like boiler replacement so appealing is that people know they’ll be warm again – and quickly. And they’ll be confident the system will keep them warm in the longer term. How can the heat pump market reach that point?

Solutions like EDF Express and Heat Geek ZeroDisrupt are narrowing this gap. They are sizing and installing systems at speeds increasingly close to those achieved in the gas boiler market.

Solutions like this may be really attractive to those who are already aware of or considering a heat pump and who need a quick replacement. But in a distress situation where familiarity and certainty are key, a known entity like a gas boiler may still tip the balance.

Installers who demonstrate that they understand and can cater for a household’s needs and can help reassure them about their concerns will be critical to building confidence and trust. This, coupled with high-quality installations, would amplify positive customer-service experiences. This could increase word-of-mouth recommendations among customers and help boost investment in training and skills by installers.

But still, building that kind of confidence and trust is going to be more effective when it’s done ahead of a distress situation. Industry and installer proactivity will help address consumer reactivity.

5. Do not underestimate the power of emotions

Someone in a distress situation wants to be confident that they’re choosing the right course of action. But facts, figures and technical information may not do much convincing.

Their immediate priority is escaping the negative emotions, the stress and panic. They need reassurance that this is a bump in the road that can be overcome.

People might not feel emotionally invested in a heating system in general day-to-day life but in that moment, when showers and rooms are cold, it could be incredibly powerful if the first message they hear is an emotional one.

Energy- or heat-as-a-service offerings can address concerns about switching to a heat pump, such as the upfront cost or worries about it not warming their house enough.

Companies offering these services could address this in their marketing. They could help raise awareness and provide emotional reassurance that, whenever the shock of a boiler breakdown comes, consumers can be ready for the switch to a heat pump.

Right now, switching to a heat pump in a distress situation would feel like an enormous decision, with relatively little time to think. And while a few days or weeks is a tiny proportion of a heating system’s lifespan it’s a huge factor when making decisions about how to keep warm.

By breaking this down into lots of smaller, incremental changes we could gradually prepare households and their homes for a heat pump. Then, when the time comes, the decision is effectively already made for them, helping them keep their home warm and their head cool.