British Gas triggers price war over heat pumps as families aim to make household energy more green
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British Gas sparks a price war over heat pumps as households push to make household energy greener
- The move will reduce start-up costs to £2,999 in England and Wales
- Normally the cost of installing an air source heat pump would be around £8,000
- This means that ‘green’ heat pumps can cost about the same as a new gas boiler
British Gas has unleashed a price war over heat pumps, which will replace gas boilers for central heating.
The move, coupled with a range of government incentives, will reduce start-up costs in England and Wales to £2,999. Typically the cost of installing an air source heat pump would be £8,000 depending on the size of the property.
Heat pumps extract heat from the outside air and operate on electricity, an increasing share of which comes from green sources such as wind and solar energy.
Energy Minister Lord Callanan said: ‘Offers like this, alongside government incentives such as cutting VAT on heat pump installation to zero, will allow government and industry to work together to help more homeowners see these benefits in 2023 and beyond.’
Heat pumps extract heat from the outside air and run on electricity, an increasing share of which comes from green sources such as wind and solar energy
Due to the promised price war, the ‘green’ heat pumps could cost about as much as the installation of a new gas boiler.
The move is expected to accelerate the introduction of residential heat pumps, which are seen as instrumental in reducing greenhouse gas emissions and reducing dependence on foreign gas imports.
The government wants to quickly increase the number of heat pumps installed, as part of efforts to replace gas boilers to reduce CO2 emissions.
The installation award is made possible through the government’s Boiler Upgrade Scheme which was launched last year and offers a £5,000 grant towards the installation of air source heat pumps via an accredited engineer.
British Gas’s lowest price offer would cover the mechanical and electrical installation of an air to water heat pump with a maximum capacity of 7 kW working together with a standard water cylinder of up to 200 litres.
Research commissioned by the company as part of the British Gas Net Zero Index study published late last year showed that the use of heat pumps should be encouraged as a more energy efficient alternative to natural gas boilers.
Andrew Middleton, managing director of British Gas Net Zero, said heat pumps are expected to play a vital role in decarbonising the UK’s housing stock.
Despite this potential, Mr Middleton said the company recognized the importance of making heat pumps more affordable at a time when households needed to be careful with their spending.
He said: ‘Supporting our customers to reduce their emissions at home is at the heart of our plans and we need to make sure it is affordable and accessible so that no one is left behind.
“We are committed to working with governments, regulators and legislators to ensure we have the right policies and frameworks in place to achieve this.
“Our engineers have installed more than 8,000 electric car charging stations, installed more than 2,300 heat pumps, and are improving insulation and installing solar panels across the country every day.”