Climate & Energy · Tuesday, 18 August 2026
01 · Briefing · what happened
Britain will pay for air conditioning, as long as it also heats
A record-heat summer has turned the heat pump from a winter machine into a summer one, and Europe is rewriting its energy taxes around it.
3-4
units of heat per unit of electricity
what a heat pump delivers; a boiler tops out at one
4.3x
UK electricity price versus gas
down from 4.7 after levies moved off bills
2,500 pounds
grant for a heat-and-cool unit
air-to-air units cost about 4,500 to fit
92%
of British homes could overheat by 2050
government climate adviser's projection
At a glance
- Britain will offer 2,500-pound grants for air conditioning units, but only ones that also heat.
- They are heat pumps run backwards - the same machine, moving heat the other way.
- A record-heat summer made cooling the argument: over 70% of England in drought, France in its fifth heatwave.
- A heat pump gives three to four units of heat per unit of electricity; a gas boiler can never beat one.
- But UK electricity costs 4.3 times as much per unit as gas, so the efficiency disappears in the bill.
- The European Commission wants that ratio capped at 2.5 by 2030, and is putting 75bn euros behind the switch.
- Upfront cost is the other wall: about 10,000 pounds in Britain against 2,500 for a gas boiler.
- Countries with the narrowest price gap already sell roughly three times as many heat pumps.
Forces in play
Over 70% of England in drought and France in its fifth heatwave; South Korea hit 42.5C, its hottest since 1904.
British electricity costs 4.3 times as much per unit as gas, mostly tax. That is down from 4.7, and Brussels wants EU households at 2.5 by 2030.
A heat pump runs to about 10,000 pounds in Britain and 30,000 euros in Germany, against 2,500 pounds for a gas boiler. Installers and VAT, not the machine.
Brussels would double electricity's share of Europe's energy to 46% by 2040, backed by 75bn euros from the European Investment Bank.
Europe's wind and solar are on course to out-generate gas for the longest stretch on record, and India's clean capacity has passed its fossil capacity.
How it unfolded
- 2025 UK rules changed so a heat pump may cool, not just heat
- Autumn 2025 green levies moved off electricity bills, trimming the price ratio to 4.3
- This summer record heat, drought across most of England, fires across Europe
- Now 2,500-pound grants for heat-and-cool units; Brussels publishes its electrification plan
- 2030 the EU target for a household price ratio no worse than 2.5
Where this points
Watch the electricity-to-gas price ratio, not the grant headlines: falling toward 2.5 flips the running-cost argument, while stalling near 4.3 keeps these machines a heatwave purchase.
Full briefing
The machine that runs both ways
Britain is preparing to hand out grants of 2,500 pounds for air conditioning units, on one condition: they must heat as well as cool
The rules only just caught up. Until recently a heat pump that also cooled needed planning permission, because permitted development rights said the unit had to be solely for heating. That was changed last year to allow cooling
Of Britain’s 358,000 heat pumps, about 323,000 are air-to-water systems, which push warm or cool water round radiators, according to certification-scheme figures
It works. At the University of Salford’s Energy House 2.0, a climate-controlled test chamber, researchers ran a heat pump with fan coils inside a full-size house. With the lab set to 32C, rooms held between 19C and 24.9C. Running round the clock cost 2.50 to 3 pounds a day
The Climate Change Committee is the government’s statutory climate adviser. It has said hotter heatwaves could leave 92% of existing British homes overheating by 2050, with drawing the curtains no longer enough
The summer that changed the argument
Cooling stopped being a foreign problem this year. Britain’s Environment Agency declared over 70% of England in drought. Reuters estimated 204 million people, 56% of western Europe’s population, would see temperatures at least 5C above normal for the date
France entered its fifth heatwave of the summer. Fires forced more than 1,000 people out of the Croatian town of Omis and emptied the German village of Gey, all 1,800 residents. In Spain, troops carried artefacts out of a monastery in Huesca as flames advanced
In east Asia the same summer went further. Yangsan in South Korea hit 42.5C on 2 August, the highest since records began in 1904. At least 31 people died, along with more than 900,000 livestock and 1.4m farmed fish. Potatoes came out of the ground soft, one farmer said, like boiled ones
That is the backdrop to a British political row. Reform’s deputy leader, Richard Tice, told a press conference it was arrogant to try to stop climate change. He urged people to enjoy the warm weather, drawing criticism from nurses and medical bodies
Why the sums still don’t work
Here is the physics that makes all of this worth arguing about. A gas boiler burns fuel and gives you at best one unit of heat per unit of gas. A heat pump gathers warmth from outside air and delivers three to four units of heat per unit of electricity
And here is why that advantage keeps vanishing at the meter. Electricity in the EU costs about three times as much per unit as gas; in Britain the ratio is 4.3
The European Commission has published an electrification action plan aimed at ending that. It would double electricity’s share of Europe’s energy from 23% to 46% by 2040. It would also put a legal duty on governments to cut the household price ratio to no more than 2.5 by 2030. Behind it sits 75bn euros from the European Investment Bank for grids, storage and heat pump manufacturing
Britain has started closing its own gap. The 2025 autumn budget moved most green levies off electricity bills and into general taxation, trimming the ratio from 4.7 to about 4.3
Upfront cost is the other wall. A heat pump runs to about 10,000 pounds in Britain before grants and close to 30,000 euros in Germany, against roughly 2,500 pounds for a new gas boiler. Labour costs, VAT and a shortage of installers explain most of the difference, not the technology
Elsewhere on the grid
The wider system is moving faster than the boiler cupboard. Europe’s wind and solar farms are on track to out-generate its gas plants for the longest stretch on record this year. A decade ago gas produced more than twice as much
Storage is arriving. Coalburn 1, a 500 MW battery holding 1 GWh on a former coal mine near Glasgow, is now Europe’s largest in operation
Demand is arriving faster. In Texas, the queue of large new users wanting a grid connection has grown by more than 200 GW since 2024, mostly data centres and industry. The consultancy Ascend Analytics reckons more than 80% of them will not have matching generation online by 2030
Two decisions still open
Britain’s regulator closed its consultation on the Rosebank oil field and the Jackdaw gas field this week. The 8.7bn pound project off Shetland is being reconsidered after a court found the original approvals unlawful. Campaigners at Uplift point to this summer’s fires; the developer’s chief executive argues domestic production means tax revenue and north-east Scottish jobs
In Washington, the NOAA said it would stop coordinating the Arctic Report Card. That annual environmental summary has run since 2006, covering a region warming about four times faster than the global average
The number that quietly improved
One piece of good news went almost unreported. Emissions from land-use change - clearing forests, draining peat, degrading woodland - have fallen by roughly a third this century, with the drop steepening after 2015. The latest Global Carbon Budget records a statistically significant decline since the late 1990s, and puts 2025 land-use emissions about 32% below their 2000s average
02 · Lesson · why it matters
The machine that gives back more than you feed it
A heat pump does not make heat - it moves heat that is already outside, and the electricity only pays for the carrying.
How it works
- Burning fuel makes heat, and one unit of fuel can never make more than one unit of heat
- A heat pump makes nothing - it moves heat that already exists outside
- The electricity only pays for the moving, not for the heat itself
- So three or four units of warmth per unit of electricity is ordinary
- Reverse the direction and the same machine moves heat out instead
- But the colder it gets outside, the less heat there is to move and the further it must be moved
The twist
A machine can give out more heat than the energy you feed it, because it is only paying to carry heat that was already outside.
Where you've seen this
Your fridge
the same machine, already in your kitchen, moving heat out of the cold box into the room
Moving house
hiring a van costs far less than buying all your furniture again at the other end
Pumping water uphill
the pump does not create the water, it only pays for the lift
A translator
carrying meaning across costs a fraction of what it cost to think it up
The catch
The ratio falls as the air outside gets colder, so the cold-weather case rests on measured field performance, never the number printed on the box.
Full lesson
The ceiling nobody can beat
Burn something and you get heat. Burn it perfectly and you get, at the very best, one unit of heat for one unit of fuel. Nothing you can build gets past that line, because you are converting the fuel and there is nothing else in the room to convert.
A gas boiler lives under that ceiling. So does an electric bar fire, and a fan heater, and a kettle. They all sit at one, or a bit under.
That is why one argument about home heating has felt settled for years. Electricity costs more per unit than gas. If both machines top out at one unit of heat per unit of energy, the dearer fuel simply loses.
Moving is not making
There is already a machine in most kitchens that breaks the rule, and nobody finds it suspicious. A fridge does not make cold. It takes heat out of the box and dumps it into the room, which is why the back of a fridge is warm.
Point that same machine the other way. Instead of pulling heat out of a small cold box, pull it out of the whole outdoors and put it in the house.
Cold air still has heat in it. Air at zero degrees is far above the point where heat runs out. There is warmth out there to collect, and it is free. The electricity is not buying the heat. It is buying the compressor and the fan that carry it inside.
Why the number sounds impossible
Divide the heat delivered by the electricity paid for and you get a ratio. Engineers call it the coefficient of performance, which just means units of heat out for each unit of electricity in.
Three is ordinary. Four happens.
That reads like cheating, and only because of the word efficiency. Efficiency compares what you got with what you destroyed, and it cannot go above one. This ratio compares what arrived with what you spent shifting it, and there is no reason that has a ceiling at all. A removal van costs less than replacing your furniture. Nobody calls the van a hundred per cent efficient.
The number that poses as a fact
So the running-cost argument should be over. It is not, and the reason is not physics.
Electricity in Britain costs about 4.3 times as much per unit as gas. Much of that gap is levies and tax, not the cost of making the power. Once the tax code sits between the machine and the meter, the ratio you actually need is a piece of arithmetic, not a piece of engineering.
Work it through. A boiler that turns 90 per cent of its gas into heat gives you 0.9 units of warmth for one unit of gas. At a price gap of 4.3, a heat pump must deliver about 3.9 units of heat per unit of electricity just to draw level. Squeeze the gap to 2.5 and the bar drops to 2.25, which almost any modern unit clears.
Nothing about the machine changed between those two sentences. The tax did. A cost that feels like weather turns out to be a decision, made in a treasury, that most people have never been asked about.
What the sales brochure leaves out
The ratio is not fixed. It falls as the air outside gets colder, for two reasons at once. There is less heat out there to gather, and it must be pushed across a wider gap to reach a warm room.
That is exactly the moment you need the machine most. So the honest test for a cold country is measured performance through a real winter, not the number printed on the box.
Run it backwards in August and it becomes an air conditioner, moving heat out instead of in. The same machine, the same trick, the arrow reversed.
The seat you are sitting in
A household deciding this is deciding against numbers it did not set. Renters cannot install one at all. Someone on a flat tariff loses much of the gain the moment they switch on. Someone with a battery and a night-rate tariff keeps most of it.
The physics is the same in every one of those houses. What differs is the arrangement wrapped around it - the price ratio, the grant, the planning rule, the shape of the tariff. That arrangement is not visible from the boiler cupboard, and it is not really visible from the treasury either, where nobody is standing in a cold kitchen in February.
Whichever seat you are in, most of what decides the outcome is being handled by people who cannot see your half of it.
03 · Lab · your turn
Pick the machine, then live the winter
Rehearse choosing a heating system, and feel how a tax ratio you never see reorders the answer.
04 · Hope · carry this
The machine that will cool a British bedroom this August is the same one that warms it in February. Sometimes the answer was already in the room, waiting to be turned around.
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