Heat pumps could soon cost the same as gas boilers after a major deal was secured by Octopus Energy. This means people will be able to slash up to £150 off their energy bills if they use the heat pump at the right times.
In a multi-million pound deal, Octopus has made a controlling investment in heat pump manufacturer Renewable Energy Devices (RED) and is looking to make heat pumps that are “quiet, highly efficient” and come in a range of sizes to fit different UK homes, reports The Express.
According to their statement: “When bought with the government’s new Boiler Upgrade Scheme, they will cost about the same as a gas boiler. By scaling production, the partners are planning to bring costs down even further, with a view to eliminating the need for government support over time.”
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At market price, an average energy-efficient heat pump costs nearly £10,000. However, this Boiler Upgrade Scheme (BUS) will offer a limited number of homeowners in England and Wales up to £5,000 to help replace old gas boilers.
Using this scheme, Octopus hopes to slash the cost even further. Octopus added that having electric vehicles or solar panels, the technology could further enhance efficiency, and reduce the running costs of a heat pump by as much as 70 percent.
In a press release, he added: “This agreement will involve major investments into heat pump manufacturing, creating valuable green jobs across the UK and helping increase our energy security by getting more homes off gas, and drive down costs for customers."
A spokesperson for Octupus said: "Customers on our Agile Octopus tariff, who programmed their heat pump to run more in off-peak periods (when power is greener and cheaper) were able to reduce their energy costs by around 20% vs a flat rate tariff. For an average customer, that's an extra £150 saving on top of the environment taxes."
