Octopus Energy and MBNA team up to offer finance for heat pumps

A new pilot scheme has been launched to make it easier for people to buy a heat pump from Octopus Energy.

Octopus Energy and MBNA Limited have teamed up to offer financing for heat pumps so customers can switch to a greener heating system. 

The monthly financing offer means householders can spread out the cost. Customers can save up to £100 a year by switching to a heat pump and a smart tariff.

Rebecca Dibb-Simkin, chief product officer at Octopus Energy Group, said: "Heat pumps are basically magic, turning energy from the air into heat for your home and slashing your carbon footprint at the same time. We're thrilled to team up with MBNA to make heat pumps more accessible with an affordable financing option to spread out the cost with monthly payments.”

Hiral Gogoi, loans director, MBNA, said: “It’s important we make it as easy as possible for people to take the steps needed to live more sustainably, including having a warmer and more energy efficient home. We know customers are increasingly interested in loans for making ‘green’ home improvements, and our pilot with Octopus Energy will make applying for an air source heat pump loan even easier to do.”

Octopus offers the lowest price for heat pumps in the UK market, with quotes that are 90% lower than average and as low as £3,000 after the government's Boiler Upgrade Scheme (BUS) grant. 

By adding MBNA's finance offering, customers can now benefit from a flexible payment option that makes home decarbonisation  more accessible for many households. 

The financing option is initially available for a four-month pilot, with Octopus looking to expand consumer financing into other home decarbonisation products in the future, such as solar panels.

Heat pumps provide a more sustainable way to heat homes than gas boilers. They are up to four times more efficient than gas boilers and can help customers reduce energy bills and gain more control over their heating via smart tariffs.

Switching from a gas boiler to a heat pump on a smart tariff can save a typical UK household around £100 a year, and further £100 if the standing charge for gas is removed [Octopus Energy].