E.ON will launch a pay-monthly subscription pilot in April that gives 350 households in the North West of England an air source heat pump, solar panels and a battery, according to Energy Systems Catapult, which is a consortium partner in the project1. The scheme was funded through the government's Green Home Finance Accelerator, which E.ON and the green mortgage provider Perenna secured in May 20231.
Customers who sign up pay for the system over a 20-year term through a monthly fee, which covers the technology and installation as well as ongoing servicing, maintenance, breakdown cover, support and optimisation1. The £150 figure is based on an average package for a four-bedroom detached property1. Energy Systems Catapult says that at today's energy prices, switching to these solutions could save an average four-bedroom property almost £800 a year1. Its worked example gives an annual bill before of £2,280.73 against £1,500.60 after, a saving of at least £780.13, based on a four-bedroom detached gas heated property typically heated to 21 degrees, on the current price cap single rate gas and electricity tariff, and assuming full removal of gas and its standing charge once the switch to a heat pump is complete1. No benefit from a smart export guarantee tariff is included, which the Catapult says would further improve net savings1.
The funding came from the Net Zero Innovation Portfolio under the Department for Energy Security and Net Zero, as part of the Green Home Finance Accelerator, which was set up to support the design and development of green finance products that incentivise domestic energy efficiency and low carbon heating retrofit1. Perenna is using its grant to refine and launch a retrofit mortgage under which customers who complete a qualifying retrofit see their mortgage rate switched to a lower rate for the rest of their term, with energy assessment and savings verification through a home energy management system from Heatio1.
Chris Norbury, E.ON UK Chief Executive, said:
"Bundling the technology along with service is commonplace for the many millions of people around the UK who have a mobile phone contract. We're bringing the same flexibility to energy customers so they can benefit from the transition to cleaner and greener homes without the need to find the upfront finance."
Energy Systems Catapult's homes business lead, Rebecca Sweeney, said 44% of UK homeowners need additional finance to install low carbon technologies and make energy efficiency improvements1. The Catapult gathered consumer insights from around 1,000 homeowners and potential homeowners in the first phase1.
Why it matters for households
The proposition removes the upfront capital cost of a heat pump, solar and battery from the householder and spreads it across 20 years, which is the barrier the Catapult identifies as the biggest to retrofitting1. For a home's energy independence, the package combines on-site generation and storage with a heating system that does not run on gas, and the savings example assumes gas and its standing charge are removed from the bill entirely1. The monthly fee is fixed for the term and covers servicing and breakdown cover, so the household is not exposed to repair costs on the equipment, though the quoted saving depends on energy prices staying at the levels used in the calculation1. The pilot is limited to 350 households in one region, so availability elsewhere has not been reported1.
What happens next
The scheme launches in April and will give 350 households the opportunity to be the first to benefit1. Energy Systems Catapult will conduct qualitative and quantitative research on the consumer experience of the Perenna proposition at key touchpoints once that product is live1.