The EDF Heat Pump Tariff offers one month of free electricity and a £1,150 guarantee – is this right for you?

EDF has launched a heat pump bundle with one month of free electricity and a seven-year £1,150 service and warranty package.

The Heat Pump and Power Tracker bundle also offers six hours of cheaper electricity at certain times every day and has no exit fees.

The bundle offer is intended to sweeten the deal for households switching from traditional gas boilers to heat pumps.

The new deal may look tempting, but it does come with a number of conditions, which means it may not be the right choice for everyone.

Here’s everything you need to know about the new deal, and who it’s best suited for.

How does the agreement work?

Customers must sign up before December 31, 2024 and switch off gas completely to receive free electricity in December 2025.

Consumers must purchase a heat pump from Ideal Heating and have it installed by EDF Heat Pumps, with a deposit paid before December 31, 2024.

The heat pump will likely cost between $3,000 and $4,000, plus installation.

However, households interested in the package can apply for grants of up to £7,500 through the government’s Boiler Upgrade Scheme.

The heat pump itself must be installed no later than September 30, 2025.

To be eligible, homes must also have a smart meter, opt for half-hourly meter readings and pay by direct debit.

Once their heat pump is installed, customers will receive a £1,150 service and maintenance package.

This includes four in-person services and three remote services, and a seven-year warranty.

If a remote investigation reveals that there are problems, Ideal Heating will carry out another personal service free of charge.

The agreement also includes the signing of a three-year Heat Pump and Power Tracker tariff.

This deal follows the Ofgem price cap, so the price paid for electricity will vary, as will the daily fixed costs.

However, households on this rate will receive a discount of 10 pence/kWh on the unit electricity rate daily between 4am and 7am and then between 1pm and 4pm.

Who is this deal suitable for?

The Heat Pump and Power Tracker bundle can be attractive for several reasons, depending on the customer.

Firstly, it offers a ‘turnkey’ way to switch to a heat pump, without you having to figure out too much yourself.

Another appeal is that consumers can pay electricity bills at or significantly below the Ofgem price cap for three years, and leave with no exit fees if they wish.

Another quirk of this tariff is that households pay the same rates for electricity units as everyone else during peak hours, and then save money for power used off-peak.

In comparison, most other heat pump tariffs offer greater discounts for off-peak energy, then increase peak hour costs.

The 10p/kWh discount offered by EDF is still quite significant, with the average price cap home currently paying a unit rate of 24.5p/kWh, although this varies depending on factors including where you live.

However, it is a smaller discount than that available on rival offers such as Scottish Power (15p/kWh) and Octopus (11.83p/kWh).

But consumers would pay more for peak power on these two deals: an average of 25.649 pence/kWh for Scottish Power and up to 37.5 pence/kWh for Octopus (between 4pm and 7pm).

In other words, the savings from the EDF agreement are smaller than those of some competitors, but the penalties for peak energy use are also lower.

EDF customer director Philippe Commaret said: ‘By working closely with Ideal Heating on our Heat Pump and Power Tracker tariff bundle, we hope to support more customers to install sustainable, energy efficient solutions, enabling them to realize significant cash and carbon savings.”