The cost of installing heat pumps in social rental housing could be halved after the government signed a commitment with housing corporations and installers to cut the cost.

The number of heat pumps installed across the Netherlands increased by 13% last year, but still lags behind the target of switching one in four homes by 2030, part of a longer-term plan to phase out gas central heating altogether.

Housing corporations own around one-third of all properties in the Netherlands.

The deal signed in Utrecht aims to cut the total cost per household from €12,500 to around €6,000 by installing heat pumps in social housing on a large scale. The cost includes installation and servicing as well as the price of the heat pump.

Manufacturers, the government innovation agency TNO and the housing ministry have signed the commitment, which includes pledges to cut the cost of the pumps and develop new models with a longer lifespan.

“We have had an innovation programme for the last three years,” Maarten Hommelberg, director of Team Duurzaam Installeren, a lobby group representing eight leading installation companies, told RTL Z. “The results were so positive that the participating organisations say it’s time to scale it up significantly.”

“If we manage to halve the total costs of a heat pump over its life, it will make sustainability affordable for tens of thousands of corporation houses,” Mark Harbers, chair of manufacturers’ association Techniek Nederland said.

“Our installers have the knowledge and expertise needed to realise the technical aspects of the plan.”