Most homebuyers think hybrid heating systems that combine air source heat pumps and gas boilers should be covered by its Boiler Upgrade Scheme.
The scheme offers grants of up to £7,500 towards the cost of a standard heat pump.
Hybrid systems cut carbon emissions by 60% compared to start heating, while they are cheaper and less disruptive to install than a fully fledged heat pump.
The analysis comes from gas distribution network Cadent, which found that two thirds (68%) think hybrid heating should be covered by government grants.
Dr. Angela Needle, director of strategy at Cadent, said: “The electric vehicle market is already embracing hybrid solutions – heating should not be any different.
“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 heating systems have already been widely deployed in mainland Europe, particularly in the Netherlands and Italy, where they account for around 50% of the overall heat pump market. To drive uptake, the Dutch, Italian, French and German Governments all provide financial incentives and support for consumers.”
Hybrid systems can span a wider range of housing stock, including the Victorian properties that make up nearly five million homes in the UK.
They are rapidly gathering pace across Europe with France, Germany and the Netherlands all installing them at scale.
Cost remains a major barrier for upgrades, with 60% unwilling to switch to a heat pump if installation costs exceeded £7,000 after subsidies, rising to almost 70% who would refuse to switch if the costs were £10,000 or more.
Hybrid heat pump installations are a cheaper alternative for consumers, typically costing 30-40% less than standard heat pumps, with an average cost of £8,000-£9,000 compared to £13,000 for a standard heat pump.
With the government targeting an ambitious 600,000 heat pump installations a year by 2028, yet stagnating at only 260,000 installed so far in total, Cadent said the inclusion of hybrid heating systems in the BUS accompanied with an upfront grant of £2,500 would give consumers more choice, maximise carbon savings per pound of public spending and accelerate the decarbonisation of homes.
Stewart Clements, director of the Heating and Hot Water Industry Council, added: “Not all homes have space for a hot water cylinder, they have been designed or adapted to work with a combi-boiler.
“A hybrid heat pump can provide the baseload heat to the home, with the combi providing hot water when needed and a back up to heat the home on colder days. It’s a real alternative to a heat pump only option for many homes in the UK.”