UK renewable energy supplier Good Energy plans in September to offer a cheaper energy tariff for homes if they use or install a greener natural-gas-boiler heating alternative: air-source heat pumps.
The offer specifically caters to current and future heat pump owners who use a lot of electricity.
Good Energy’s new tariff will be enabled by smart metres and offer cheaper renewable energy rates at certain periods during the day.
The energy tariff will piggyback on government’s newest subsidy, Green Home Grants, pushing homeowners to install heat pump systems that can cost between £11,000 to £20,000, depending on home size.
Heat pumps were previously incentivised by government’s energy tariff guarantees under the Renewable Heat Incentive, a subsidy programme that is slated to come to an end in 2022.
Government grants of £10,000
Good Energy's new tariff is being funded by £2 billion insulation and energy efficiency grant scheme announced last month by Chancellor Rishi Sunak.
Under the government’s new grant scheme, people can claim up to £10,000 towards green home improvements, said the company.
The tariff will be offered to customers this autumn in conjunction with the launch of applications for the grant scheme.
The company said its offer is meant to provide more pay off for heat pump owners considering the high price of installing. “Historically cost has been a barrier for homeowners looking to use a heat pump, both in up front installation costs and the electricity used to run them.
"The government’s new grant scheme for installations, combined with Good Energy’s new tariff providing reduced running expense, will make cleaner, greener heating more cost effective,” according to the company.
Juliet Davenport, founder and CEO of Good Energy, said: “The vast majority of homes in the UK are kept warm with fossil fuels in the form of gas. It’s a huge thing to tackle if we are to decarbonise the UK. 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.”
Rob Cheesewright, director of corporate affairs, SmartEnergyGB, said, “Good Energy’s announcement today of an exciting new tariff for those using heat pumps demonstrates the pace at which the energy market is delivering innovative solutions that are not just cost effective for consumers but also benefit the wider country as we decarbonise our energy system. With smart meters enabling this tariff and with the second generation of meters now being installed, there is no reason to delay expressing your interest in upgrading your traditional meters.“
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Image credit: Krzysztof Lis / Pompa ciepła powietrze-powietrze / Air source heat pump is licensed under CC BY-SA 2.0
