Octopus Energy and Lloyds bring best-in-market heat pump offer to UK households
- Octopus Energy and Lloyds Banking Group to provide heat pumps from as little as £2k for some types of homes
- New partnership can deliver heat pumps for less than many gas boilers
- Scheme set to benefit up to 65% of UK homes
London, 9th November 2022 – Octopus Energy and Lloyds Banking Group today announce a pilot scheme bringing the best heat pump offer to UK households, in a move to reduce energy bills for customers and decarbonise the heating of homes.
Under the scheme, Halifax mortgage customers can get a heat pump installed from as little as £2,000*.
Octopus Energy will provide and install the heat pumps, while Halifax will award a £1,000 Green Living Reward. The scheme, used in conjunction with a £5,000 government Boiler Upgrade Scheme (BUS) grant, could mean heat pumps for some homes will cost less than many gas boilers**.
The offer is designed to benefit the around 40% of UK homes (10 million) which are already suitable for heat pumps, or around 65% (14 million) with minor efficiency measures (such as loft insulation) carried out.
The new scheme will also unlock greener energy for UK households. Air-source heat pumps are a low carbon source of heating – running on electricity, increasingly from renewable sources – and are 3-4 times more energy efficient than gas boilers.
The news comes as UK homeowners face the worst cost of living crisis in a generation.
The pilot is the latest in Octopus Energy’s roster of initiatives designed to wean the UK off fossil fuel and become more energy independent. Earlier this year, the energy supplier, which is the third biggest in the UK, acquired heat pump manufacturer Renewable Energy Devices (RED) in a move to build cheaper and better heat pumps for the UK.
Rebecca Dibb-Simkin, Chief Product Officer at Octopus Energy, comments on the partnership: “We’re always looking for ways to help people save money while accelerating the shift to a clean energy future. The pilot with Lloyds Banking Group comes at a crucial time for consumers facing a dual climate and cost of living crisis. It no longer needs to be a question of prioritising one over the other: heat pumps are greener than gas boilers, and thanks to Octopus, the government and Lloyds Banking Group they can be cheaper too.”
Jas Singh, CEO Consumer Lending, Lloyds Banking Group, said:
“Our partnership with Octopus adds another element supporting our strategy to help Britain live in better, warmer, greener homes and move the country towards its net zero target.
“Lots of homeowners who need to replace, or want to upgrade, a gas boiler may have considered the switch to a heat pump but see the cost as a barrier. This extension to our Green Living Reward scheme will make switching from a gas boiler to a new, more efficient, cheaper to run heat pump easier and more affordable than ever before.
“We won’t stop here. We are committed to playing our part in reaching net zero by continuing to support and encourage our customers to make greener choices for their homes. This pilot is just the first from our partnership with Octopus Energy; we will continue to innovate, we will continue to help make Britain’s homes better for their owners and better for the environment.”
The pilot is the first step in the partnership between Octopus Energy and Lloyds Banking Group, with more projects in the pipeline to accelerate the green energy transition at home.
The offer is available now. Please visit this Halifax webpage for more information.
Notes to editors
*Installation price of £2,000 based off Octopus Energy’s typical cheapest install price of £3,000 (after the £5,000 government grant) and including £1,000 Lloyds Green Living Reward
**Boiler Central quotes average UK combi boiler installation costs £1,800
Octopus Energy Group
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About Octopus Energy Group
Octopus Energy Group is a global energy tech pioneer, launched in 2016 to use technology to unlock a customer focused and affordable green energy revolution. It is part of Octopus Group, which is a certified BCorp. With operations in 14 countries, Octopus Energy Group's mission is going global.
Octopus’s domestic energy arm already serves 3.4 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, Ebico, London Power and Co-op Energy. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, managing a £4bn portfolio of renewable energy assets throughout the continent.
All of these are made possible by Octopus’s tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 20 million customer accounts worldwide, through deals with EDF Energy, Good Energy, E.ON energy and Origin Energy.
In December 2021, Octopus Energy Group was valued at approximately $5 billion following a $600 million investment from Generation Investment Management and a $300 million investment from Canada Pensions Plan Investments Board. Both investors back businesses that drive sustainability, promote green energy and tackle climate change. It was the company’s third major investment round since launching to the market.
For more information, check out our website.
Lloyds Banking Group
Lloyds Banking Group are committed to reducing carbon emissions they finance to net zero by 2050 or sooner. Enabling the transition to a low carbon, more sustainable and inclusive future for people and businesses is key to delivering on our purpose. Lloyds Banking Group are joining up all parts of our business to accelerate the transition to a lower carbon future, prioritising the following areas: the energy transition, low carbon transport, greening the build environment, sustainable farming and natural capital and sustainable investments and pensions.
Green Living Reward: Green Living Reward | Halifax
Green Living Reward offers cashback to borrowers financing a range of energy efficiency home improvements with Halifax, including insulation, heat pumps, double glazing, and solar PV panels and battery storage.
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