British Gas claims it will be offering the lowest priced heat pump installations with a starting price of £2999 per install. In what could become a price war, the company says it will match anything lower offered by another company for an MCS credited install.
The lower price tag reflects input from government incentives, including the Boiler Upgrade Scheme (BUS), and is available to customers in England and Wales.
The offer applies to a standard air source heat pump up to 7kW and a standard cylinder with a capacity up to 200 litres, along with mechanical and electrical installation. Customers will also get a five-year warranty after installation.
Having delivered over 2300 heat pump installations to date, British Gas says this technology will play an essential role in the UK achieving its net zero goals by 2050.
However, research conducted as part of British Gas’s Net Zero Index found that most customers have a limited understanding of heat pumps compared to products like insulation or solar panels. When homeowners were asked what they would replace their existing boiler with, 37% said a similar gas or oil-fired boiler and only 14% said they’d choose a heat pump.
The company hopes its new heat pump offer, which puts it in the same price bracket as a new boiler, will encourage people to opt for a heat pump.
Andrew Middleton, MD of British Gas Net Zero, says: “Heat pumps are an essential part of the UK’s journey towards a decarbonised future. We recognise that many households are being cautious with their spending in the current climate and want to do all we can to make this technology more affordable – so that those customers who can make the move to low carbon heating feel compelled to do so now.
“Supporting our customers in lowering their emissions at home is at the forefront of our plans and we need to make sure it is affordable and accessible so that no one is left behind. We are committed to working with governments, regulators and legislators to ensure we have the right policies and frameworks in place to achieve this. Our engineers have installed over 8,000 electric car charging points, have installed over 2,300 heat pumps and are improving insulation and providing solar panels around the country each day.”
Business and Energy Minister Lord Callanan adds: “It is fantastic that homeowners across England and Wales will benefit from the clean, efficient energy that heat pumps deliver and at a much more competitive price than they would have been sold for just a few years ago, thanks to initiatives like the Boiler Upgrade Scheme and British Gas’s new offer.
“We know that heat pumps are proven to be an excellent, reliable technology which help consumers to move away from fluctuating gas prices. With offers like this one, alongside government incentives such as slashing VAT on heat pump installation to zero, government and industry can work together in helping more homeowners to see these benefits in 2023 and beyond”.
