The Energy and Utilities Alliance (EUA) has called for heat pump subsidies to be better targeted to properties where it can make the most difference to energy costs. According to EUA, to secure energy bill savings for the consumer, as well as lower carbon emissions, replacing direct electric heating systems with a heat pump is a sensible approach to boost heat pump sales.
According to data produced by EUA, the following represent average heating costs (excluding standing charges) for different heating systems:
Direct electric (standard tariff): £2691 per year
Direct electric (E7 tariff): £1374 per year
Heat pump (standard tariff): £898 per year.
Gas boiler (standard tariff): £688 per year
Commenting on the data, Mike Foster, CEO of EUA, says: “We are pushing consumers to switch to heat pumps but in doing so, if they currently use gas, we are expecting them to pay more to heat their home. Having spent £13,000, on average, to fit a heat pump then putting up your energy bills is not a great proposition. So why not target those homes where we can cut bills as well as carbon?
“The bill savings for a heat pump, compared to direct electric heating, are huge at nearly £1800 a year. Even if that electric heating uses night storage radiators and Economy 7, the savings are still worthwhile at £476 a year. Switching a gas boiler to a heat pump, however, will increase bills by over £200 a year.
“Official government statistics show the UK has over two million homes heated by electricity only, so real potential for heat pump sales growth. At the moment, the Boiler Upgrade Scheme subsidy shows only 6% of recipients are swapping direct electric heating for a heat pump, compared to 56% who used gas.
“A heat pump is considerably more efficient than direct electric heating options, so there are considerable carbon savings to make as well as bill savings. This makes for a powerful double-whammy, compared to switching gas to a heat pump, which comes with a trade-off between carbon savings and higher bills.”
