In response to rising energy costs exacerbated by the ongoing crisis in Iran, British households are increasingly investing in eco-friendly home energy improvements, according to insights from major energy suppliers.
Data reveals a significant surge in the demand for solar panels, electric vehicles, and heat pumps across Great Britain since the conflict escalated on February 28. Many families are preparing for a considerable spike in their energy bills when the upcoming price cap adjustment takes effect in the summer months.
Forecasts indicate that energy costs could rise by 18% starting in July, bringing the typical annual dual-fuel tariff to approximately £1,929. This increase follows a notable 50% rise in Europe’s benchmark gas price.
Octopus Energy, the largest energy provider in Great Britain, reported to the Guardian that orders for heat pumps more than doubled in March compared to February. Additionally, there was an almost 80% increase in solar power system sales, while new electric vehicle leases rose by over 85%.
British Gas, the second-largest energy provider in the country, echoed these findings, noting a staggering 250% rise in inquiries for solar panel installations since late February. The company also observed a considerable uptick in interest regarding heat pumps, according to a spokesperson.
Rebecca Dibb-Simkin, chief product officer at Octopus, commented, “Families in Britain are weary of being vulnerable to fluctuating global fossil fuel prices. We are witnessing a significant trend as individuals take proactive steps by opting for solar, heat pumps, and electric vehicles, effectively securing lower operating costs and shielding themselves from potential future price hikes.”
Allan Burgess, a resident of Great Yarmouth, is among those who opted for a heat pump installation last month, moving away from heating oil—a fuel relied upon by over one million households in the UK, particularly in rural areas lacking access to the gas grid.
“As soon as the conflict in Iran began, I realized I needed to make a change,” he explained. “I had been paying £250 for 500 litres of heating oil, but the price skyrocketed to £700 within a week. I was genuinely concerned about depleting my heating oil supply and the uncertainty of how high prices could climb.”
Heating oil prices are not regulated under Ofgem’s cap, and British consumers have expressed frustration over soaring costs and supply shortages since the onset of the conflict. These prices are closely tied to the cost of jet fuel, which has surged following Iran’s effective closure of the Strait of Hormuz. Europe depends on Gulf refineries for around 60% of its jet fuel imports, putting the UK at high risk for potential shortages.
“I was eager to secure a heat pump to protect against these issues,” Burgess shared. “However, my wife has a disability, so I needed to avoid any major disruption to our heating system.”
Burgess successfully arranged for the installation of a heat pump on March 12. A survey was completed two days later, and the pump was operational by March 17. His home already featured a water tank, which helped reduce the installation cost to £1,500 after applying for a £7,500 government grant. Additionally, he has solar panels and a battery system that now provide electricity to operate the heat pump without relying on the grid.
Furbnow, a provider of home energy upgrades, noted a 42% rise in inquiries since the end of February, highlighting a distinct increase in requests aimed at reducing fossil fuel dependency.
Becky Lane, the company’s CEO, remarked, “These decisions are not made in haste; they are thoughtful choices. Families have come to understand that one of the best ways to ensure resilience is to minimize their home’s overall energy needs. A home that requires minimal energy is largely insulated from the impact of price spikes.”
Nearly 75% of potential new clients have expressed interest in solar panels, while over half are considering replacing their gas or oil boilers with electric heat pumps. Approximately 40% are seeking quotes for insulation upgrades.
