Swindon & Wiltshire Business News

Good Energy set to launch UK’s first ever heat pump tariff

Juliet Davenport, founder and CEO of Good Energy

 

Chippenham-based clean power supplier Good Energy is set to launch the UK's first heat pump tariff, helping customers to benefit from a £2 billion government grant scheme – and to reduce their carbon emissions.

The heat pump tariff will be launched in the autumn for homeowners planning to make the most of the government’s new Green Homes Grant to electrify their home heating system.

As part of his summer economic update earlier this month, Chancellor Rishi Sunak announced that people can claim up to £10,000 towards green home improvements. This includes air source heat pumps – a greener electrified heating system which is an alternative to gas central heating.

The number of homes with heat pumps was forecast to double by 2025 even prior to the government’s announcement.

Good Energy’s new tariff will make it cost-effective to run a heat pump using 100 percent renewable electricity, by offering cheaper unit rates at certain periods during the day whilst the national electricity grid is greener and/or experiencing lower demand.

Historically cost has been a barrier for homeowners looking to use a heat pump, both in upfront installation costs and the electricity used to run them.

The government’s new grant scheme for installations, combined with Good Energy’s new tariff providing reduced running expense, will make cleaner, greener heating more cost-effective.

“The vast majority of homes in the UK are kept warm with fossil fuels in the form of gas. It’s a huge thing to tackle if we are to decarbonise the UK. So, the Green Home Grants scheme is a good move by the Chancellor and Good Energy is helping it go further with this innovative tariff," said Juliet Davenport, founder and CEO of Good Energy.

“This tariff will be designed to make it as easy and affordable as possible for people to get rid of dirty gas heating their home and start using clean electricity from renewables.”

The key features of Good Energy’s heat pump tariff will be:

  • Competitive unit rates to benefit heat pump users with higher electricity consumption
  • Cheaper unit rates at specific times of the day, allowing customers to use their heat pumps more cost-effectively during key periods
  • Air source heat pumps absorb heat from the air outside to heat your home and hot water.

Heat from the air is absorbed at low temperature into a fluid. This fluid passes through a compressor, increasing the temperature, and transfers that higher temperature heat to the heating and hot water circuits of the house.