The new energy offering is available to all British Gas energy customers that purchase any air source heat pump from British Gas and aims to help drive the adoption of heat pumps in the country.

British Gas is providing a unit rate of just 14p/kWh for the electricity used to run the heat pump for the first year. Households could save up to £450 for one year by switching to a heat pump, making use of the new rate and capping their gas meter, compared to heating a home with a D-rated gas boiler. The savings from the new rate will automatically be credited to customers’ energy bills each month.

The move tackles the ongoing running costs of heat pumps making them a more affordable option for home heating and cutting carbon emissions. British Gas also offers a range of payment options including two years interest free credit.

It follows British Gas’ latest research which showed that 60% of UK homeowners say they are considering installing a heat pump.

According to the research, reducing energy bills is homeowners’ biggest priority when it comes to their home heating. Cheaper heat pump tariffs will help to convince nearly four in 10 (37%) homeowners to adopt a heat pump in the future.

Gail Parker, Low Carbon Homes Director at British Gas, said: “There is a clear desire amongst UK homeowners to cut their energy bills and act more sustainably, but we need to make low carbon products more affordable.

“We are launching the UK’s lowest heat pump rate to lower running costs as we know this is the single most important factor in households’ choice of home heating system. Our new leading heat pump offer aims to provide a bigger financial incentive to make the switch to electric – helping to decarbonise home heating and making headway towards the Government’s heat pump target.”

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “Our Boiler Upgrade Scheme is one of the most generous of its kind in Europe and is helping households make the switch to cleaner, more energy efficient heating.

“Demand for heat pumps is on the rise with the latest figures showing applications are up 46% compared with the same month last year. This competitive new tariff from British Gas will see families save up to £450 on their energy bills, all while cutting emissions.”

British Gas and sister company Hive are also looking to make heat pumps simpler to understand. Smart home expert, Hive, and heat pump manufacturer, Daikin, have recently announced that they will be integrating heat pumps into the Hive smart home technology with trials due to begin later this year.