With the aim of making low carbon technology more affordable and encourage the take up of heat pumps, British Gas has launched what is claimed to be the UK’s lowest heat pump rate. The new energy offering is available to all British Gas energy customers that purchase any air source heat pump from the company.

British Gas is providing a unit rate of just 14p/kWh for the electricity used to run the heat pump for the first year. It is estimated that households could save up to £450 for one year by switching to a heat pump, making use of the new rate and capping their gas meter, compared to heating a home with a D-rated gas boiler. The savings from the new rate will automatically be credited to customers’ energy bills each month. The energy supplier also offers a range of payment options including two years interest free credit.

Recent research from British Gas suggests that 60% of UK homeowners are considering installing a heat pump. According to the research (a survey of 2000 adults conducted by Censuswide in March 2024) reducing energy bills is homeowners’ biggest priority when it comes to their home heating. and cheaper heat pump tariffs will help to convince nearly four in 10 (37%) homeowners to adopt a heat pump in the future.  

Gail Parker, low carbon homes director at British Gas, comments: “There is a clear desire amongst UK homeowners to cut their energy bills and act more sustainably, but we need to make low carbon products more affordable. We are launching the UK’s lowest heat pump rate to lower running costs as we know this is the single most important factor in households’ choice of home heating system. Our new leading heat pump offer aims to provide a bigger financial incentive to make the switch to electric – helping to decarbonise home heating and making headway towards the Government’s heat pump target.”

British Gas and sister company Hive are also looking to make heat pumps simpler to understand. Smart home expert, Hive, and heat pump manufacturer, Daikin, have recently announced that they will be integrating heat pumps into the Hive smart home technology with trials due to begin later this year. 

For more information, visit: https://www.britishgas.co.uk/energy/gas-and-electricity.html