A sharp rise in gas prices means that heat pumps could become more cost-effective for people to heat their homes. A heat pump is powered using electricity, eliminating the need for natural gas.
With incentives including the Boiler Upgrade Scheme, which offers £5,000 towards the cost of an air source heat pump, and Heatio Heat Pump Ready Energy Modelling Solution, switching to a heat pump could be a better option for the environment and household finances.
It's Time To Get Ready
““Homeowners must prepare themselves for a long winter as we pay the price for reliance on cheap gas. We must now take advantage of incentives such as the Boiler Upgrade Scheme, switch to an electrified heating system, and benefit from greater energy security in the coming years.”
Simon Roberts, Co-Founder Heatio
Gas is currently priced at 15p per kilowatt hour (kWh); therefore, it costs approximately 17p to generate a single kilowatt of heat. This is based on a boiler efficiency rating of 90% and will cost more for those with older or less efficient boilers. Electricity is set to rise to 52p per kWh, but even at this price, using a heat pump will cost 14p per kilowatt of heat, demonstrating 370% efficiency. Although this may not seem like a huge saving, the end of cheap gas will likely encourage more homeowners to look at alternative ways of heating their homes.
Further Energy Price Increases
There has been increasing concern about the ongoing affordability of energy bills, with Ofgem expected to increase the energy price cap further during 2023. Earlier this year, the UK Government offered payments to UK households to assist with the rising cost of living. However, no further support has been discussed. Lobbyists are pushing for a levy of up to 25%, which is currently applied to electricity bills to be reduced, and if agreed, this would make heat pumps even more cost-effective compared to gas boilers.
The Heatio Heat Pump Ready Model
Households who want to discover new ways to save money on their energy bills or are considering switching to a heat pump can see the savings that can be made by switching to a heat pump with our "Heat Pump Ready" Energy Model.