The UK is set to be hit by huge increases in both gas and electricity prices with many paying more than double the price they paid 12 months ago. In October 2022, energy prices are expected to surge again, leaving a lot of us wondering what we should do.
Right now, one thing is for certain, everyone in the UK is going to be affected by this energy crisis. Unfortunately, there’s no way we can insulate ourselves from the storm that’s coming. That said, there are changes and recommendations we can make now to ensure our potential customers don’t end up being the worst hit.
According to AUXILIONE, the price of Gas is expected to increase 94% in just 2 months time, whereas Electricity prices will increase at a slower rate of 71%.
Heat Pump vs Gas Boiler Energy Prices
The upcoming price difference between Gas and Electric means that an efficient heat pump with a SCoP of more than 2.9 can now produce meaningful cost savings when compared to the average gas boiler. The more efficient the heat pump is, the more money your customer could potentially save.
Think of it this way, for every £100 your customers spend on gas, £8 to £15 of their cost goes straight in the bin because of inefficiencies. With an efficient heat pump installed, your customers property can produce more than 3 times as much energy as the heat pump uses. Ultimately the efficiency difference between a gas boiler and a heat pump, plus the price difference of electricity, is what will save them money over the long term.
Additionally, a heat pump can use energy supplied from a range of different electricity sources – including renewably generated. Keeping this in mind, it’s an ideal time for customers to consider installing either solar PV to be able to self-generate energy and/or install a storage battery to take advantage of off-peak energy prices.
Over time, heat pumps will continue to get cheaper and cheaper vs. gas boilers as gas prices continue to rise faster than electricity. It’s also important to remember that the more the UK ramps up our renewable energy generation, the more that trend will be further exacerbated.