British Gas triggers price war over heat pumps as families aim to make household energy more green 

British Gas has triggered a price war on heat pumps, which are set to replace gas boilers for central heating.

The move, coupled with a raft of government incentives, will bring down the starting cost to £2,999 in England and Wales. Normally, the cost of installing an air source heat pump would be £8,000, depending on the size of the property.

Heat pumps draw warmth from the outside air and run on electricity, an increasing proportion of which comes from green sources such as wind and solar power.

Energy minister Lord Callanan said: ‘With offers like this, 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.’

Heat pumps draw warmth from the outside air and run on electricity, an increasing proportion of which comes from green sources such as wind and solar power

The promised price war means the ‘green’ heat pumps could cost around the same as the installation of a new gas boiler.

The move is expected to speed the introduction of the home heat pumps which are seen as instrumental in cutting greenhouse gas emissions and reducing reliance on imports of foreign gas.

The Government wants to rapidly increase the number of heat pumps being installed, as part of efforts to replace gas boilers to cut carbon emissions.

The installation price is made possible via the government’s Boiler Upgrade Scheme that was launched last year and offers a £5,000 grant towards the cost of installing air source heat pumps via an accredited engineer.

British Gas’s lowest price offer would apply to the mechanical and electrical installation of an air source heat pump with a maximum capacity of 7 kW working in tandem with a standard water cylinder measured at up to 200ltr.

Research commissioned by the company as part of its British Gas Net Zero Index study published late last year identified the need to encourage heat pump use as a more energy efficient alternative to natural gas boilers.

Andrew Middleton, managing director of British Gas Net Zero, said that heat pumps were expected to play an essential role to decarbonise the UK housing stock.

Despite this potential, Mr Middleton said that the company recognised the importance of making heat pumps more affordable at a time where households were having to be cautious with spending.

He said: ‘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.’