Octopus Energy has stepped up to help the Government with its Heat and Buildings Strategy, which plans to incentivise the public to install heat pumps as a replacement for gas boilers to reduce carbon emissions. With homeowners facing bills of around ￡10,000, the Government had previously been slammed for the high cost of heat pumps. But now, households are set to receive ￡5,000 government grants to install heat pumps through the ￡450million Boiler Upgrade Scheme.
And Octopus Energy say they can bring down the cost to the same price as natural gas boilers by April 2022.
Speaking in the House of Commons earlier today, Energy Minister Greg Hands said: “Octopus Energy, and indeed others, have said that they think they can make heat pumps an equivalent cost to natural gas boilers by April 2022.
"I've got confidence in the ability of British industry and energy companies."
It comes after Greg Jackson, CEO and founder of Octopus Energy said: "This Heat and Buildings Strategy will help kickstart a cheap clean heating revolution, by bringing prices down for households and allowing companies to invest in scaling up their clean heating operations.
“When the new scheme launches in April, Octopus Energy will install heat pumps for about the same cost as gas boilers.
"Octopus has already committed ￡10million investment to its research and development and training centre dedicated to the decarbonisation of heat, and has begun training engineers at the rate of 1,000 per year. “
Mr Jackson said that the company’s plans signal a big drive forward in the UK’s race to net zero emissions.
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He added: "But this is just the beginning. By scaling up the technology and supply chain in Britain, innovative companies like ours will soon be able to fit and run heat pumps without any government support, bringing us one step closer to making the UK the Silicon Valley of Energy and creating thousands of clean energy jobs throughout the country.”
Mr Jackson also believes that this will play a key role in reducing Britain’s reliance on fossil fuels and will bring a huge boost to Britain’s energy transition.
He said: "Electric heat pumps are more efficient, safer and cleaner than gas boilers and can help make homes more comfortable with less energy. Today we’ve crossed a massive milestone in our fight against climate change and to reduce Britain’s reliance on expensive, dirty gas."
This also comes as energy prices have skyrocketed in the UK over the last few months.
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Since May, the price of a basket of coal, oil and gas soared 95 percent, and energy companies continue to go bust.
The Government is hoping that their Heat and Buildings Strategy will protect Britain against volatile energy markets as they transition to clean energy.
Business and Energy Secretary Kwasi Kwarteng said: ”Recent volatile global gas prices have highlighted the need to double down on our efforts to reduce Britain’s reliance on fossil fuels and move away from gas boilers over the coming decade to protect consumers in long term.
“As the technology improves and costs plummet over the next decade, we expect low carbon heating systems will become the obvious, affordable choice for consumers.
“Through our new grant scheme, we will ensure people are able to choose a more efficient alternative in the meantime.”
The announcement of the Heat and Buildings Strategy has come after Mr Johnson unveiled his 10 Point Plan for a green industrial revolution.
It outlined how decarbonising households and workplaces could support 240,000 jobs across the sector by 2035.
Mr Johnson will no doubt be keen to showcase these strategies at the upcoming climate summit in Glasgow in just under two weeks.