By Charlie Conchie
Renewable energy firm Octopus has struck a deal with Lloyds Banking Group to roll-out low-cost heat pumps to customers today, in a tie-up that aims to boost the decarbonisation of domestic heating.
The two firms said the move was part of wider “strategic partnership” that would encourage customers to retrofit existing UK properties with renewable technology and increase energy efficiency.
In a statement today, Lloyds said the pilot scheme had launched through the Halifax brand and would allow customers to use mortgage borrowing to fund the switch to an air-source heat pump and bag £1,000 cashback after installation.
Rebecca Dibb-Simkin, chief product officer at Octopus Energy said switching to pumps could help usher in 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,” she said.
She added that it no longer needs to be a “question of prioritising” gas boilers on the grounds of price because heat pumps can now be cheaper.
Halifax will provide borrowers with a referral link to arrange installation with Octopus Energy.
The tie-up comes after ministers rolled-out a “boiler upgrade scheme” which provides grants of £5,000 to move away from polluting boiler systems. Government plans to push more Brits towards heat pumps have come in for criticism from some quarters due to prohibitively high prices that can reach £13,000.
Lloyds and Octopus claimed today that with their heat pump cash back scheme however the cost of installation could drop to £2000 – less than many gas boilers.
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