Good Energy to launch First Heat Pump Tariff in Autumn 2020

Opportunity for energy suppliers

The newly announced tariff will allow consumers to benefit from the government’s recently announced Green Home Grants scheme.



Chancellor Rishi Sunak announced in his Summer Statement that £2billion will be made available for homeowners to make their properties more environmentally friendly and energy efficient.



Property owners can apply for vouchers worth up to £10,000 to help them make the improvements. The grant is expected to launch in September 2020.



To attain a voucher, homeowners will have to make an online application detailing the energy efficiency measures they wish to carry out. These details will then be forwarded to accredited local suppliers. 



Once one of the suppliers has issued a quote, and the requested work has been approved, then the government will issue the voucher towards the work. 



Good Energy says that its new tariff will be ideal for those hoping to benefit from the scheme as well as helping the nation get ready for the future and the increasing drive towards cutting carbon emissions.

Renewable Energy over Gas 

Conventional gas boilers have been targeted to be phased out completely by the mid-2030s with heat pumps often suggested as being the best alternative.



The new tariff will make heat pumps more appealing to consumers and go some way to lowering the cost barrier often associated with installing and running the technology.



“The Green Home Grants scheme is a good move by the Chancellor and Good Energy is helping it go further with this innovative tariff. Tackling the fossil fuel heating systems in the vast majority of UK homes is ‘huge’ but necessary if the UK is to decarbonise. 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,” said Juliet Davenport, founder and CEO of Good Energy.



The Heat Pump Challenge

A recent report published by the Confederation of British Industry (CBI) called for a ban on installing conventional gas boilers from 2025.

Such a move would mean that there will be very little time to encourage and convince the population of the benefits of heat pumps.



The government thinktank the IPPR further highlighted the challenges in a report that showed that less than 2% of the heat pumps needed to decarbonise the country have been installed. 



Green Tariffs 

With 12 million homes needed to be retrofitted with heat pumps if the government wants to hit its NetZero carbon target in 2050 there is plenty of opportunity for energy suppliers to attract new customers.

A greener nation will require huge changes that energy suppliers should be looking to use to their advantage. Introducing new green tariffs or ones that are tailor made for consumers individual needs could be a great way of attracting customers.

Tariffs aimed specifically at electric vehicle owners have already been introduced by some suppliers and we can expect more to follow Good Energy’s lead with new tariffs aimed at encouraging the adoption of other green technologies. 

Further Reading

More Green Energy Proposals from Ofgem as it seeks to ‘transform’ local electricity networks

New rules planned for Energy Suppliers as Ofgem vows to protect small businesses from unscrupulous Energy Brokers

How a CRM makes change of tenancy energy bills easy to manage

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