A British energy company has reached an agreement that it believes will significantly reduce the cost of heat pumps. Octopus Energy has acquired a controlling stake in heat pump manufacturer, Renewable Energy Devices (RED).
As a result, he said, he was trying to devise “quiet and highly efficient” heat pumps that would be of different sizes for different homes in the UK.
The company said, “When it buys a new government scheme for modernizing boilers, it will cost approximately the same as a gas boiler.” At the production level, the partners plan to further reduce costs to remove the need for government support over time.
The company also announced plans to integrate “smart grid” technology into its heat pumps.
“This will allow the pumps to maximize spare capacity in the power and distribution networks, reduce load during peak hours – and reduce operating costs for consumers.”
Speaking to Express.co.uk, Octopus Energy co-founder Greg Jackson said: “Heat pumps are already the most energy efficient way to heat a home, now we just need to make it cheaper. Investing in Octopus Energy will help bring prices down, make them cheaper and give People have a choice in how they heat their homes.”
He added in a press release: “This deal includes massive investment in heat pump manufacturing, creating valuable green jobs in the UK, and will help increase our energy security by releasing more gas from homes and reducing costs for customers.
“This is a typical moment for the heat pump industry. The thousands of heat pumps leaving the RED Craigavon facility each month is just the beginning.
“Like the original Ford, we plan to expand production each year, further reduce costs and make heat pumps more affordable.”
In the UK’s latest Energy Security Strategy, the government has announced a roadmap to make the UK energy independent. Heat pumps play a major role in this scheme, with Prime Minister Boris Johnson unveiling a key support scheme to halve the cost of buying a new home heat pump.
At market price, the average cost of an energy-efficient heat pump is close to £10,000. However, the Boiler Refurbishment Scheme (BUS) will save a limited number of homeowners in England and Wales up to 5,000,000 to replace their old gas boilers.
This leads the government to pledge nothing to ban the sale of new gas boilers from 2036 onwards. The government currently aims to install 600,000 heat pumps annually by 2028.
To speed up this process and reduce the cost of heat pumps, Chancellor Rishi Sunak recently announced that the government will eliminate five percent value-added tax on home energy efficiency technologies, including heat pumps, over the next five years.
Source: Belfastlive
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
