Total cost of ownership of heat pumps and policy choice: The case of Great Britain
Summary: Heat pumps are essential for decarbonizing heating, as shown by numerous studies. Their adoption depends significantly on economic attractiveness. Using Great Britain (GB) as a case study, this paper examines the total cost of ownership (TCO) for heat pumps versus gas boilers. TCO is calcul...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-02-01
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| Series: | iScience |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2589004225000434 |
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| author | Jan Rosenow Jacob Barnes Ray Galvin Samuel O'Mara Richard Lowes |
| author_facet | Jan Rosenow Jacob Barnes Ray Galvin Samuel O'Mara Richard Lowes |
| author_sort | Jan Rosenow |
| collection | DOAJ |
| description | Summary: Heat pumps are essential for decarbonizing heating, as shown by numerous studies. Their adoption depends significantly on economic attractiveness. Using Great Britain (GB) as a case study, this paper examines the total cost of ownership (TCO) for heat pumps versus gas boilers. TCO is calculated using official energy statistics, field trial data, and residential energy prices, alongside scenario analyses on business as usual, shifting levies from electricity bills to general taxation or to gas bills. Findings reveal that heat pumps provide cost savings for units performing at an above-average efficiency under standard tariffs but yield significant savings with smart tariffs. Results indicate that a carbon tax on gas, matching electricity permit prices, has limited impact. However, shifting levies from electricity to general taxation significantly enhances TCO compared to gas heating, with even greater incentives when levies are shifted to gas heating. |
| format | Article |
| id | doaj-art-d38c58b535f74516af358c0b9b6c837d |
| institution | Kabale University |
| issn | 2589-0042 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Elsevier |
| record_format | Article |
| series | iScience |
| spelling | doaj-art-d38c58b535f74516af358c0b9b6c837d2025-01-26T05:04:35ZengElsevieriScience2589-00422025-02-01282111784Total cost of ownership of heat pumps and policy choice: The case of Great BritainJan Rosenow0Jacob Barnes1Ray Galvin2Samuel O'Mara3Richard Lowes4University of Oxford, Environmental Change Institute, 3 South Parks Road, Oxford OX1 3QY, UK; University of Cambridge, Cambridge Institute for Sustainability Leadership, Entopia Building 1 Regent Street, Cambridge CB2 1GG, UK; Corresponding authorUniversity of Oxford, Environmental Change Institute, 3 South Parks Road, Oxford OX1 3QY, UKUniversity of Cambridge, Cambridge Institute for Sustainability Leadership, Entopia Building 1 Regent Street, Cambridge CB2 1GG, UKGemserv, 2nd floor, 77 Gracechurch St, London EC3V 0AS, UKUniversity of Exeter, Energy Policy Group, Penryn Campus, Treliever Road, Penryn, Cornwall TR10 9FE, UKSummary: Heat pumps are essential for decarbonizing heating, as shown by numerous studies. Their adoption depends significantly on economic attractiveness. Using Great Britain (GB) as a case study, this paper examines the total cost of ownership (TCO) for heat pumps versus gas boilers. TCO is calculated using official energy statistics, field trial data, and residential energy prices, alongside scenario analyses on business as usual, shifting levies from electricity bills to general taxation or to gas bills. Findings reveal that heat pumps provide cost savings for units performing at an above-average efficiency under standard tariffs but yield significant savings with smart tariffs. Results indicate that a carbon tax on gas, matching electricity permit prices, has limited impact. However, shifting levies from electricity to general taxation significantly enhances TCO compared to gas heating, with even greater incentives when levies are shifted to gas heating.http://www.sciencedirect.com/science/article/pii/S2589004225000434Energy resourcesEnergy policyEconomics |
| spellingShingle | Jan Rosenow Jacob Barnes Ray Galvin Samuel O'Mara Richard Lowes Total cost of ownership of heat pumps and policy choice: The case of Great Britain iScience Energy resources Energy policy Economics |
| title | Total cost of ownership of heat pumps and policy choice: The case of Great Britain |
| title_full | Total cost of ownership of heat pumps and policy choice: The case of Great Britain |
| title_fullStr | Total cost of ownership of heat pumps and policy choice: The case of Great Britain |
| title_full_unstemmed | Total cost of ownership of heat pumps and policy choice: The case of Great Britain |
| title_short | Total cost of ownership of heat pumps and policy choice: The case of Great Britain |
| title_sort | total cost of ownership of heat pumps and policy choice the case of great britain |
| topic | Energy resources Energy policy Economics |
| url | http://www.sciencedirect.com/science/article/pii/S2589004225000434 |
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