"The electric vehicle market is already embracing hybrid solutions – heating should not be any different"
- Dr. Angela Needle - Cadent
68% of UK homeowners believe that government grants should include hybrid heat pumps. These systems are more affordable and take up less space than standard heat pumps but currently do not qualify for government financial support.
Research commissioned by Cadent, the UK’s largest gas distribution network, reveals widespread dissatisfaction with the current Boiler Upgrade Scheme (BUS). While the scheme offers £7,500 towards standard heat pumps, many homeowners want it to cover other eco-friendly and less costly alternatives.
Hybrid heating systems combine a small air-source heat pump with a gas boiler for peak winter heating and hot water. They can reduce carbon emissions by up to 60% compared to traditional gas heating. Cadent’s recent analysis suggests that if the electricity grid continues to decarbonise, this figure could rise to 80% by 2030.
These systems are less disruptive to install and can suit a wider range of properties, including the nearly five million Victorian homes in the UK. They are already growing in popularity across Europe, with countries like France, Germany, and the Netherlands installing them extensively.
More than half of those surveyed said they would be more likely to upgrade their heating if hybrid heat pumps qualified for subsidies. However, 75% felt that current government incentives of up to £7,500 for standard electric heat pumps make them unlikely to install one within the next year.
Cost remains a key obstacle. Around 60% of respondents would not switch to a heat pump if installation costs exceeded £7,000 after subsidies, increasing to almost 70% at £10,000 or more.
Hybrid heat pumps are typically 30-40% cheaper than standard heat pumps, costing between £8,000 and £9,000 on average, compared to around £13,000 for a standard unit.
The government aims to install 600,000 heat pumps annually by 2028 but has installed only 260,000 so far. Including hybrid heating systems in the BUS with an upfront grant of £2,500 could offer consumers more options, improve carbon savings per public pound spent, and speed up home decarbonisation.
“The electric vehicle market is already embracing hybrid solutions – heating should not be any different," said Dr. Angela Needle, director of strategy at Cadent. “The government should adapt its policies to reflect public demand and market realities by reducing the upfront financial barriers to hybrid heat pumps, making this energy-efficient technology accessible to a wider audience and significantly advancing the UK’s decarbonisation efforts.”
Hybrid systems are already widely used in mainland Europe, particularly in the Netherlands and Italy, where they account for about 50% of the heat pump market. Governments in the Netherlands, Italy, France, and Germany all offer financial incentives to encourage adoption.
“Not all homes have space for a hot water cylinder, as they have been designed or adapted for combi-boilers," added Stewart Clements, director of the heating and hot water industry council, “A hybrid heat pump can provide the baseload heat, while the combi-boiler supplies hot water and backs up heating on colder days. It’s a real alternative to a heat pump-only option for many UK homes.”
