Clean power company to help customers benefit from the £2 billion government grant scheme and green up their home heating
Good Energy, the 100% renewable power company, will launch a tariff for heat pumps. The new offering will be ideal for homeowners planning to make the most of the government’s new Green Homes Grant to electrify their home heating system.
The tariff will be offered to customers this autumn when the government begins accepting applications for the £2 billion fund.
The Chancellor, Rishi Sunak, said 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% 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 up front 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.
Juliet Davenport, founder and CEO of Good Energy, said:
“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.”
“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.”
Rob Cheesewright, Director of Corporate Affairs, SmartEnergyGB:
“Good Energy’s announcement today of an exciting new tariff for those using heat pumps demonstrates the pace at which the energy market is delivering innovative solutions that are not just cost effective for consumers but also benefit the wider country as we decarbonise our energy system. With smart meters enabling this tariff and with the second generation of meters now being installed, there is no reason to delay expressing your interest in upgrading your traditional meters.“
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.
The Green Homes Grant scheme was announced in 8 July 2020 by Chancellor Rishi Sunak to help homeowners make their homes more energy efficient. It is set to open in September 2020.