Homeowners with a Vaillant heat pump will now be able to access OVO’s new deal – Heat Pump Plus – introducing a best in-market rate of 15p per kWh making heat pumps cheaper to run on average by  £495 per year*. With the UK government target set to install 600,000 heat pumps per year by 2028, the new Heat Pump Plus add-on is designed to support existing heat pump homes with their ongoing running costs and aims to encourage more households to transition from a gas boiler to a heat pump.

How it works: customers have two separate rates – one for their heat pump, and one for the rest of their household energy usage – rewarding households for making the switch to low carbon heating technology. Both new and existing Vaillant customers with an internet-connected aroTHERM or aroTHERM plus air source heat pump can access the new rate – which is currently the cheapest on the market for heat pump customers. 

What the research tells us: Currently, cost is the biggest barrier to choosing a heat pump. More than half of the UK (52%) would want to replace their gas boiler if they could afford to do so, and three quarters (75%) say they would make the switch with a roughly 50% reduction in running costs. When combined with the £7,500 Boiler Upgrade Scheme grant from the government to help towards installation, thousands more households would be able to benefit from a cleaner and more efficient heating system. 

For customers now considering the move to a heat pump, Heat Pump Plus is available through any MCS accredited Vaillant air source heat pump installation and OVO are installing Vaillant heat pumps with their installation partner, Heat Geek. Their nationwide network of highly trained engineers guarantee their systems are designed to deliver high efficiency, allowing customers to see further reductions in heating costs. 

Mat Moakes, Chief Commercial Officer, OVO said: “The UK is trailing far behind Europe on its heat pump installations. Yet our data shows that when paired with innovative tariffs to reduce the cost, alongside the Boiler Upgrade Scheme, the uptake increases while rewarding early adopters. We need to see more progress to decarbonise heating and our new partnership with Vaillant is an exciting step to make heat pumps more attractive for thousands more households.”

Henrik Juhl Hansen, Managing Director UK & Ireland, Vaillant, said: “Having invested in low carbon technology for more than 25 years, our commitment to decarbonising UK homes remains strong. Since the launch of our heat pump line in 2022, making Vaillant the first boiler company to manufacture heat pumps in the UK, we continue to develop our business supporting the growing demand in this low carbon technology, through our installer training and expanding our manufacturing sites in the Derbyshire area. Through our investments in sustainable heating technologies, we are able to collaborate with OVO and are proud to be launching this new partnership making heat pumps more affordable across the UK. This new proposition will change the landscape for business, and consumers looking at decarbonising their home heating.”

 * (The following information has been provided by OVO and is accurate as of March 2024) Sub: Actual sum is £495.94. When Heat Pump Plus is added to an energy plan, the home energy rate will stay the same, but the energy consumed by the heat pump will be charged at an effective rate of 15p per kWh (Heat Pump Plus credit). The £495.94 saving is based on an air source heat pump with a UK average Seasonal Coefficient of Performance (or efficiency rating) of 2.8 and an annual consumption of 3,644 kWh with the Heat Pump Plus add-on compared to OVO’s average SVT rate of 28.61p per kWh. Actual savings will vary depending on heat pump usage, efficiency rating and the cost per kWh of the standard home energy tariff.