Centrica Plc slashed its heat pump installation costs as Britain’s biggest household energy provider looks to take a bigger share of the emerging market for low-carbon home heating.
(Bloomberg) — Centrica Plc slashed its heat pump installation costs as Britain’s biggest household energy provider looks to take a bigger share of the emerging market for low-carbon home heating.
The cost reduction unveiled by Centrica’s British Gas unit comes as the government moves to make heat-pump technology as affordable as current heating systems. The move brings a company better known for traditional gas services into direct competition with firms such as Octopus Energy Ltd., the country’s third-largest household supplier, that currently dominate the market.
The government is aiming for 600,000 heat-pump installations per year by 2028 and is providing upfront grants to help offset the cost. British Gas is now offering installations for as low as £2,999 ($3,660), which is on par with the cost of new gas-fired boiler for the average family home.
Even so, the pumps that use electricity to draw in warmth from outside for home heating and hot water still face headwinds from a lack of engineers to install them. The Energy and Utilities Alliance trade body is doubtful the UK can keep up with installation targets and said the government has underestimated the number of workers needed by 200%.
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