EDF has launched a new Heat Pump Tracker tariff that will never charge customers above the price cap – a ‘UK first’.
The new tariff was designed in conjunction with CB Heating, which EDF recently acquired as part of its effort to help make heat pumps accessible to as many of its customers as possible.
The scheme offers six hours of discounted zero-carbon energy every day during the off-peak windows of 4am-7am and 1pm-4pm.
Philippe Commaret, managing director of customers at EDF, said: “Everyone plays a significant part in helping Britain achieve net zero which is why we’re pleased to be bringing a heat pump tariff to both new and existing customers in the market.”
Switching from an A-rated gas boiler to a standard air source heat pump would cut a household’s carbon footprint by approximately 1.9 tonnes.
Although heat pumps are the most carbon-friendly home heating solution, cost is a major factor in the decision to transition to low-carbon systems.
A recent study by EDF showed that over two-thirds of Brits (67%) are seeking greater control over their energy costs. 42% of respondents without an air source heat pump said they have concerns about their current heating systems.
The top causes for concern were rising costs (71%) and environmental issues (41%).
According to the government, April marks the fourth month there have been more than 2,000 applications since grants for air source and ground source heat pumps increased to £7,500.
Off-peak discounts
Heat pump users will benefit from annual savings of at least £164 against the Standard Variable Tariff by switching to the Heat Pump Tracker tariff by EDF, paying no premium peak prices.
Savings increase for customers who shift all of their consumption to the off-peak hours.
Off-peak discounts apply to all electricity in the home so customers can benefit from unit rates that are cheaper than the price cap for all appliances.
EDF’s study showed that only 2% of Brits have air source heat pumps in their homes, with 26% planning to install one in the next five years.
For seven in ten Brits, not needing to upgrade their current system is a roadblock; 26% are only likely to install a heat pump when they next renovate.
Over half (55%) consider saving money on bills as the most important factor in the decision to switch, while 31% also believe that heat pumps would have a positive influence on their decision to buy a new home.
Legislation driving change
When the UK government published its Future Homes and Buildings Standards consultation at the end of 2023, it stated heat pumps must be standard within all new homes by 2025.
Despite increasing and extending the Boiler Upgrade Scheme (BUS), the government delayed the Clean Heat Market Mechanism (CHMM) which provides heat pump sales targets for boiler manufacturers. There were fears the mechanism would be scrapped after a ‘phantom tax’ on gas boilers increased prices, so implementation has been pushed by 12 months to April 2025.
While the onus remains on consumers to lead the shift, there are other government-led support schemes available to providers. In January 2024, the UK government announced an £80.6 million funding package, more than half of which will be awarded to Exeter Energy Network to build a new network of air-source heat pumps.
Business-led transition
Companies are looking to develop beyond the basic uses of a heat pump. The National Grid launched the second round of its EQUINOX (Equitable Novel Flexibility Exchange) trial, which allows heat pumps to provide flexibility services, in December 2023.
Octopus Energy has also made efforts to enable customers to buy heat pumps, introducing a scheme in partnership with MBNA as far back as July 2023.
The Heat Pump Tracker tariff follows the success of one of five trials EDF ran in March this year. EDF Renewables also partnered with ESB and Reventus Power to develop a 1.5GW floating offshore wind farm in the Celtic Sea earlier this month.