The Swedish homeowners' perception of Innovative Heating Systems (IHSs) was studied through a questionnaire survey. Most of the respondents were satisfied with their existing heating systems and were not planning to install a new one. They considered economic factors and functional reliability the most important factors in the choice of a heating system. Hence, economic policy instruments appear to be efficient in inducing homeowners to install an IHS. Installers were the most important source of information. The perceived advantages of pellet boilers were fewer than those of heat pumps and therefore, they were diffusing slower than heat pumps in Sweden.