Electricity bills could be cut to encourage more heat pump installations
Earlier this year the UK government set the world’s most ambitious climate change target of 78% reduction in carbon emissions by 2035 compared to 1990 levels.
To achieve this goal, gas boilers need to be phased out, however in usual circumstances, gas is cheaper than electricity which is discouraging people from investing in heat pumps as they run on electricity. For this reason, electricity bills could be cut as the government aims to replace 600,000 gas boilers every year from 2028 with heat pumps which can be three times more energy-efficient than a gas boiler.
How do we get more Heat Pumps installed?
Another way in which the government are encouraging people to install renewable energy technologies like Heat Pumps is The Renewable Heat Incentive which will pay a large amount towards the cost of a heat pump installation in the form of repayments every 3 months for 7 years. This incentive makes it possible to see a return on investment as soon as 5-6 years.
The sooner you invest, the sooner you will see a return on your investment. Why wouldn’t you invest in any technology or goods that increase the energy efficiency of your property, making it more sustainable, lowering energy bills, and lowering carbon emissions?
The UK is currently trailing behind most European countries in terms of heat pump adoption with 1.3 sold for every 1,000 households compared to Norway who are leading with 42 heat pumps sold per 1,000. Public knowledge and awareness of the benefits of heat pumps are growing and momentum is building.
Air Source Heat Pump Tariffs…
We believe the real answer lies in bespoke “Heat Pump Tariffs“, these would be plans provided by energy companies specifically for homeowners with a Heat Pump of some description that would offer reduced rate electricity to power their system.
According to the Energy Saving Trust, it can currently cost you around 4.7p per kWh to run your Air Source Heat Pump. EDF claim that their GoElectric tariff can get that price down to as low as 2.3p per kWh. This tariff is based on the same principle as the Economy 7 style tariffs that people used to use with storage heaters.
We hope that more and more energy firms start to offer bespoke Heat Pump tariffs, where cheap, renewable energy can be offered to people who are wanting to go “off-grid” and dramatically reduce their carbon footprint.