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British Gas launches lowest price pledge for heat pumps

British Gas has said it will match any like-for-like heat pump installation price that comes in lower than its own.

To date the Centrica-owned supplier has installed more than 2,300 heat pumps but research by the company recently found there is more uncertainty among consumers about low-carbon heating compared to other energy efficiency products such as insulation and solar panels.

Asked what they would replace their existing boiler with, 37% of homeowners said a similar gas or oil-fired boiler and only 14% said they would choose a heat pump.

British Gas is currently offering prices from £2,999 per installation but has said it will match anything lower offered by another company for a MCS-credited install.

The £2,999 offer, which covers the entire installation, applies in England and Wales and includes the government’s £5,000 Boiler Upgrade Scheme grant. In Scotland, the £7,500 Home Energy Scotland grant means prices start from £499.

It applies to a standard air source heat pump up to 7Kw and a standard cylinder with a capacity up to 200L, along with mechanical and electrical installation.

According to the supplier’s website, exact costs will depend on how much extra work is needed to upgrade the home’s insulation, pipework and radiators.

“Once we know that, we’ll give you a fixed-price quote that covers everything,” it added. It also stressed that it reserves the right to refuse a price match if it believes “the quote and design specification isn’t suitable for your home”.

Andrew Middleton, managing director of British Gas Net Zero, said: “Heat pumps are an essential part of the UK’s journey towards a decarbonised future.

“We recognise that many households are being cautious with their spending in the current climate and want to do all we can to make this technology more affordable – so that those customers who can make the move to low carbon heating feel compelled to do so now.

“Supporting our customers in lowering their emissions at home is at the forefront of our plans and we need to make sure it is affordable and accessible so that no one is left behind.”

Business and energy minister Lord Callanan said: “We know that heat pumps are proven to be an excellent, reliable technology which help consumers to move away from fluctuating gas prices.

“With offers like this one, alongside government incentives such as slashing VAT on heat pump installation to zero, government and industry can work together in helping more homeowners to see these benefits in 2023 and beyond.”