British Gas has introduced a new heat pump rate in the UK, available to all its energy customers who purchase an air source heat pump from the company.
The rate is set at 14p/kWh for the electricity used to run the heat pump during the first year.
Households could save up to £450 annually by switching to a heat pump, using the new rate, and capping their gas meter, compared to heating a home with a D-rated gas boiler.
These savings will be credited to customers‘ energy bills each month.
The initiative aims to address the running costs of heat pumps, making them a more feasible option for home heating.
British Gas offers various payment options, including two years of interest-free credit.
The launch follows British Gas’ research, indicating that 60% of UK homeowners are considering installing a heat pump.
Reducing energy bills is the top priority for homeowners regarding their home heating.
Cheaper heat pump tariffs are expected to convince nearly 37% of homeowners to adopt a heat pump in the future.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “Our Boiler Upgrade Scheme is one of the most generous of its kind in Europe and is helping households make the switch to cleaner, more energy efficient heating.
“Demand for heat pumps is on the rise with the latest figures showing applications are up 46% compared with the same month last year.”
Gail Parker, Low Carbon Homes Director at British Gas, said: “We are launching the UK’s lowest heat pump rate to lower running costs as we know this is the single most important factor in households’ choice of home heating system.
“Our new leading heat pump offer aims to provide a bigger financial incentive to make the switch to electric – helping to decarbonise home heating and making headway towards the government’s heat pump target.”
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