Halifax customers can bag £1,000 cashback for heat pump installation
Lloyds Banking Group and Octopus Energy have teamed up to offer select mortgage customers £1,000 cashback when installing cheaper and greener air source heat pumps.
The scheme will provide low cost air source heat pumps to households which the lender said would support the decarbonisation of domestic heating and encourage the retrofit of existing UK properties.
The pilot has been launched through the Halifax brand, allowing customers using mortgage borrowing to get £1,000 cashback once Octopus Energy has provided and installed the air source heat pump.
Octopus Energy said it usually costs around £8,000 – £9,000 including fitting for a heat pump which takes heat from the outside, compressing the warm air which then heats radiators and hot water tanks.
However, if the scheme is used together with the government’s boiler upgrade scheme, which offers £5,000 cashback, this brings the cost of installing a heat pump to £2,000+. This means heat pumps for some homes will cost less than gas boilers.
Lloyds Banking Group said that around 40% of UK homes are suitable for a switch to a heat pump, and four million would become suitable if additional measures are taken such as installing loft insulation.
‘Heat pumps are greener and can be cheaper’
Rebecca Dibb-Simkin, chief product officer at Octopus Energy, said: “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 of consumer lending, Lloyds Banking Group, added: “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.”
He added: “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.”