As energy costs continue to soar, many UK households are considering heat pumps as a more sustainable and cost-effective heating solution. British Gas and several other energy companies have recently introduced enticing incentives and deals that promise significant savings for those willing to make the switch from traditional gas boilers to heat pumps.
Heat pumps have been identified as a key technology in reducing household carbon footprints and energy bills. However, the high initial costs and lack of general understanding have hindered their widespread adoption. Recognising these barriers, the UK government, alongside various energy firms, has introduced more affordable heat pump options, substantial grants, and better energy deals for households opting for these eco-friendly devices.
Current Offers and Savings
British Gas Leads the Charge
British Gas is at the forefront with a new offer that could save heat pump owners up to £450 a year on their energy bills. To qualify, customers need to have a British Gas-fitted air source heat pump installed by September 31, 2024. After installation, customers can subscribe to a special heat pump tariff, which provides electricity at a discounted rate of 14p per kWh for the first year. This is a significant cut from the average rate of 24.5p per kWh under the current Ofgem price cap, which applies to over 80% of UK homes.
EDF’s Time-Specific Savings
EDF Energy has introduced the Heat Pump Tracker tariff, offering savings of £164 annually for heat pump users who consume energy during specific hours. The tariff provides cheaper electricity rates from 4 am to 7 am and 1 pm to 4 pm daily. This plan requires a smart meter and encourages heating during off-peak hours to maximise savings.
Ovo’s Exclusive Deal
Ovo Energy promotes the Heat Pump Plus tariff, promising up to £300 in annual savings compared to remaining on a price-capped tariff. This offer is exclusively available to customers who either own a Vaillant heat pump or purchase one through Ovo’s partner, Heat Geek. A smart meter installation is also necessary to benefit from this deal.
Octopus Energy’s Flexible Offer
The Cosy Octopus tariff from Octopus Energy is not limited to heat pump users but benefits them with 51% cheaper rates during the designated offpeak hours of 4 am to 7 am and 1 pm to 4 pm. However, it’s worth noting that any electricity used between 4 pm and 7 pm will cost 45% more than the usual price-capped rates, which could coincide with peak home energy use.
Grants for Heat Pumps
The UK government is offering substantial financial assistance through the Boiler Upgrade Scheme (BUS), which provides grants of up to £7,500 for homeowners switching from gas or oil boilers to heat pumps. To access this grant, homeowners must work with an installer certified under the Microgeneration Certification Scheme (MCS), who will handle all necessary paperwork.
Additional Incentives from Manufacturers
Worcester Bosch offers additional financial incentives, including a £2,500 ‘Clean Heat Cashback Pledge’ for those who choose their heat pumps, or £1,000 for selecting a Bosch hybrid system.
Affordable Installation Options
British Gas offers a competitive installation starting price of £450 after the government grant, assuming no additional property upgrades are required. However, the typical cost can rise significantly depending on the house’s needs.
Octopus Energy and Ovo also promote installation deals that could be as low as £500, post-grant, provided the properties are suitable for straightforward heat pump installations without needing extensive upgrades.