UK: Energy supplier OVO has halved the cost of electricity for heat pumps to 15p per kWh, roughly halving their running costs compared to a gas boiler.
The Heat Pump Plus offer makes heat pumps £500 a year cheaper to heat the average home, according to Ovo. Customers who sign up will have two tariffs: one for the heat pump and one for the rest of the home’s energy consumption.
OVO says it is addressing the issue that heat pumps cost more to run than traditional gas boilers (a concern of 55% of those surveyed in a recent study) to drive adoption and reach net zero faster.
Research carried out by OVO shows that 45% of the population would install a heat pump if running costs were 40% cheaper than today’s average prices. This equates to almost 12.7 million homes, far exceeding the government’s target and helping the UK (and OVO) reach net zero faster.
With electricity prices currently three times higher than gas, heat pump running costs are the top concern for four in five households when choosing a heating system, with 35% saying running costs are more important than initial costs.
“The UK lags far behind Europe in the number of heat pumps. By halving heat pump running costs, we are helping to level the playing field between gas boilers and heat pumps, making them a more viable option for those looking to switch to electricity from green technology,” said OVO commercial director Mat. Mokes. “But it should be like that across the board. It’s time to shift the political costs from electricity to general taxation so everyone can benefit from greener, cheaper electric heating systems as soon as possible.”