Heat pump cost will halve if Government backs them to replace gas boilers, says Kwasi Kwarteng
The cost of electrically powered heat pumps will be cut in half if the government supports them as a replacement for gas boilers.
The heating and building strategy published in autumn should contain a detailed schedule for the expansion of boilers from new buildings and existing housing stocks in order to reduce the environmental impact of house heating.
Kwasi Kwarteng promised that the government would help individuals “transition” to green energy and insisted that the cost of heat pumps be cut from the current estimate of around £ 10,000 per home.
He told the BBC’s Today program, “There is a transition and that is what we are focused on and we want to try to help people make that transition.” The strategy would “open up a number of options,” added Mr Kwarteng added.
When asked whether the cost of the technology would make it impracticable on a large scale, the Minister of Economic Affairs said, “As soon as you, as the government, have given a clear sign that you want to go down this path, suppliers will invest in the production of heat pumps and will be able to make them at a much cheaper cost so that the retail price would be well below £ 10,000. “
Some energy companies claim they can supply and install a heat pump – which can run on electricity from renewable sources – for as little as £ 5,000. Mr. Kwarteng said: “Today’s starting prices do not reflect the cost of these heat pumps in the future.”