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.
According to Ovo, its Heat Pump Plus offer makes heat pumps £500 per year cheaper to heat the average home. Customers who sign up will have two rates – one for their heat pump and one for the rest of their home’s energy usage.
OVO says it is tackling concerns that heat pumps are more expensive to run than traditional gas boilers – a worry expressed by 55% of people in a recent study – to encourage uptake and reach net zero faster.
Research conducted by OVO shows that 45% of the population would install a heat pump if running costs were 40% cheaper than today’s average rate. That equates to almost 12.7 million homes – far surpassing the government’s target, and helping the UK (and OVO) reach net zero, quicker.
With electricity prices currently three times more expensive than gas, the running costs of a heat pump are a primary concern for four in five households when choosing a heating system, with 35% saying running costs were more important than the initial costs.
“The UK is trailing far behind Europe on its heat pump installations. By halving the running costs of a heat pump, we’re helping to level the playing field between gas boilers and heat pumps, making them a more viable option for those wanting to make the green switch to electric,” said OVO’s chief commercial officer Mat Moakes. “But this has to be the case across the board. It’s time to shift policy costs from electricity to general taxation so everyone can benefit from greener, cheaper electric heating systems, sooner.”