Octopus Energy says customers can slash £315 a year off their energy bills with one heating change.
The energy supplier, which serves 12.9 million households across the UK, says switching to a heat pump can result in huge savings as they are much cheaper to run than gas boilers with dedicated smart tariffs.
The firm says that heat pump customers on its ‘Cosy Octopus’ tariff – which offers three periods of cheap electricity rates for eight hours of the day – can make annual savings of £315 on their heating costs, compared to gas boiler customers on a standard variable tariff.
Almost 60,000 new heat pump installations were made last year in the UK and thanks to a £30 million cash injection to the government’s Boiler Upgrade Scheme (BUS), it is now easier for people to have one fitted.
Octopus said: “Thanks to the £7,500 grant from the Boiler Upgrade Scheme (BUS), the costs of getting a heat pump are now on par with a new gas boiler.
“Heat pumps are also cheaper to run than gas boilers with dedicated smart tariffs. Octopus’ ‘Cosy Octopus’ can save heat pump customers £315 a year on heating costs compared to gas boiler customers on an SVT.”
Heat pumps are also cheaper to run than a traditional gas boiler as they are significantly more energy efficient, meaning households can save hundreds of pounds per year by making the switch.
Additionally, the average lifespan of a heat pump is up to 20 years, whereas a boiler will typically only last up to 15, and it has an efficiency of 310% – compared to just 85% for a boiler.
The supplier adds: “Heat pumps can deliver several units of heat for each unit of electricity. For every 1 kWh of electricity you put in, you could get an average of 3.1kWh heat out, which is an efficiency of 310%! This is because heat pumps don’t create heat, but move existing heat from nature into your home – like an air conditioner or refrigerator, but in reverse.
“Alternatively, when you burn stuff to generate heat – like gas, oil, or wood – you are instead creating heat by converting matter to energy – so you can never get more than one unit of heat for each unit of energy you burn.
“Gas boilers in UK homes are only around 85.3% efficient, so for every 1 kWh of gas you put in, you get around 0.853kWh of heat out, which is nearly 4x less efficient than a heat pump (3.1/0.853 = 3.6).”
