The company claims that the new ‘Cosy” range of radiators and pipes does not require any new ones.
Octopus Energy is announcing that it will end the era expensive, “ugly”, and inefficient heat pumps by introducing a “Cosy” product range which works just as well as gas boilers.
Gas and electricity provider has announced that it will be distributing the new devices to households by December. Some will even receive them free of charge after government grants have been taken into consideration.
Greg Jackson, CEO of Octopus said that heat pumps would be able produce hot water with the same temperature as gas-fired boilers. This means households will not need new pipes or radiators.
Most devices only reach water temperatures around 45C. Boilers can achieve at least 60C.
This is because they can only be used with certain pipes and radiators. It has led to concerns over their viability. Jackson, however, said that the new Octopus device would be different. It will have a “radical design” and “end the world of ugly heat pumps”.
“Our heat pump will run up to 75C, so if a home has radiators and pipe in good condition, they won’t need replacing,” Mr Jackson said. This should result in a significant cost saving.
We estimate that the installation costs for a semi-detached three-bed house will be around £8,000. The government will give a grant of £5,000, so that the average household would pay £3,000.
If they already own the other essentials, like a water cylinder or a jug, the cost may be as low as £5,000. This is the same amount as the grant from the government. For these households, the cost would be zero.”
If Mr Jackson’s predictions of costs are accurate, Octopus new air source heat pumps may disrupt existing heat pump markets.
Installing a ground-source heat pump costs from £17,000 up to £35,000.
These costs have discouraged households, with installation rates hovering around 55,000 per year.
Heat pumps concentrate heat by using refrigerant chemicals, electric pumps and air outside the building.
Heat pump installations are expected to reach 600,000 per year by 2028.
The Government has extended the boiler upgrade program, and is now offering £5,000 for heat pump installation over the next five-year period.
Octopus has announced that its Cosy range of products, which is suitable for homes up to three-bedrooms, will include models with more power, suitable for homes four to five bedrooms.
Jackson, however, admitted on Thursday at a technology summit that the new heat pump will not result in immediate money savings for householders.
The electricity used by heat pump costs more than the gas used in boilers.
Jackson said that the government must rethink its levies on electricity bills if it wants heat pumps to become more popular.
Octopus was a startup in 2016, but today provides energy for five million UK households.