Good Energy is to launch the UK’s first ever tariff for heat pumps in autumn 2020.
The tariff will help make it more cost-effective to run a heat pump, offering cheaper unit rates at different times of day to ensure consumers can benefit from surplus renewable generation or low demand on the grid.
According to Good Energy, the tariff will be ideal for those who are looking to benefit from the government’s Green Home Grants. Announced in the Summer Statement by Chancellor Rishi Sunak, the £2 billion scheme will provide households with £10,000 to undertake green home improvements, including the installation of air source heat pumps.
With cost a commonly cited barrier to the installation of heat pumps, Good Energy says the combination of its new tariff and the Green Home Grants will make the technology more cost-effective for both installation and running.
Juliet Davenport, founder and CEO of Good Energy, said that tackling the fossil fuel heating systems in the vast majority of UK homes is “huge” but necessary if the UK is to decarbonise.
“So, the Green Home Grants scheme is a good move by the Chancellor and Good Energy is helping it go further with this innovative tariff.”
“This tariff will be designed to make it as easy and affordable as possible for people to get rid of dirty gas heating their home and start using clean electricity from renewables.”
The number of heat pumps in the UK is expected to double by 2025, but many think more needs to be done to promote the technology and drive down emissions from heating.
Less than 2% of the heat pumps needed to decarbonise the UK’s homes are currently being installed by the government think tank IPPR found in a recent report. If the country is to hit its 2050 decarbonisation target, 12 million homes will need to be retrofitted with heat pumps.