Thousands of people across the UK are being offered the chance to slash their energy bills after the government announced an expansion of its Boiler Upgrade Scheme.
And Chris O’Shea, CEO of British Gas’ parent company Centrica, said that he was “delighted” that the scheme would offer his customers as much as £456 a year off energy bills.
Today, the government announced an expansion to its Warm Homes Plan, which offers a grant of £7,500 to households looking to ditch their traditional fossil fuel boiler and replace it with a heat pump.
Heat pumps are a new way of heating homes, working a little bit like a reverse air conditioning unit. They draw in air from outside and warm it before pushing it into your house.
And the government is offering £7,500 off the price of a heat pump, paid directly to your installer, which it says can save £300 a year off bills but Centrica prices at £456.
Rules around heat pumps are also being relaxed: they will no longer need planning permission, restrictions on noise levels and boundaries have been softened and those who rent or live in social housing will also be able to get upgrades too.
The Department for Energy Security and Net Zero said: “Up to 300,000 households will benefit from home upgrades in the next year, as the government announces new steps to help households of every kind take up measures that can help save money on their bills and deliver cleaner heating.
“Homeowners in England and Wales to get a £7,500 heat pump grant through the Boiler Upgrade Scheme, which had the highest number of applications ever in October according to Ofgem.
“Households install an air source heat pump without needing to submit a planning application in England – removing the 1m rule, with figures from Octopus showing 34% of those who order a heat pump are discouraged or drop out for reasons attributed to planning permission.
“Social housing residents, lower income householders and renters to receive funded energy efficiency upgrades – including insulation and low-carbon heating – through the Warm Homes: Social Housing Fund and Warm Homes: Local Grant respectively.”
Chris O’Shea, CEO, Centrica, said: “We are delighted that the government is making it easier for households to install heat pumps by removing the outdated 1m planning rule in England and increasing the funding available in the Boiler Upgrade Scheme. Heat Pumps will play an integral role in decarbonising home heating, and we look forward to supporting customers transitioning from gas boilers to heat pumps, through our Hive Heat Pump offer which can save customers up to £456 on their energy bills.”