Want more detail on how we achieve the savings?

You can read our briefing in full here: www.e3g.org/publications...

There is huge potential here for energy bill savings - but only if the UK acts on the recommendations.

Heat pumps do come with a higher up-front cost - but maximising running cost savings unlocks more options to finance those upfront costs and deliver long-term savings

Step 4 - Ensure consumers can access cheaper off-peak electricity

Making sure consumers can access the benefits of cheaper "off-peak" renewable electricity has the potential to reduce heat pump bills by a further ~£175 per year.

Step 3 - Drive up installed heat pump performance

Heat pumps are very efficient (~280%+ compared to a gas boiler at ~90%). But many installations could be even better.

Increasing average installed efficiency to 350% could reduce average heat pump bills by another ~£140 per year

Step 2 - Reform the electricity system to bring down electricity costs

Clean Power 2030 is a good start, but there's more we could be doing to clamp down on excess profits and reduce electricity prices.

See e3g.org/publications... for more on this!

Step 1 - Remove levies from electric heating.

Introducing a levy-free Affordable Electric Heating Tariff could reduce electric heating bills by over £150 per year.

We shouldn't tax people to heat their homes. As more people switch to electric heating, this must be addressed.

So - how do we make sure low carbon heating delivers lower heating bills?

These actions would also substantially reduce bills for households with less efficient forms of electric heating.

As we set out in our blog earlier this year, these households are among some of the poorest in the country.
www.e3g.org/news/the-uk-...

We set out four recommendations for government - in total, these could slash the average UK heat pump bill to ~£375 per year.

That's over £445 per year LESS than the current average gas heating bill.

Instead, we need to insulate homes and install efficient forms of electric heating, like heat pumps.

Heat pumps can already be cheaper to run than a gas boiler in some cases. But government needs to act to make heating bill reductions accessible to the average household.

Moving away from fossil gas is the ONLY credible, long-term option to reduce heating bills.

It is not economical to expand UK gas production - doing so risks pushing up bills even further.

With new affordable tariffs, modern forms of electric heating would at last offer reliably cheaper bills than fossil fuels. Aligning climate action with action to bring down energy bills.

For clean power to mean lower heating bills, government needs to act:
💲 Removing levies from electricity used for heating
🛠️ Supporting households to modernise their heating
🔌 Introducing an Electricity Bills Charter (www.e3g.org/publications...)