Cheap deals on heat pumps from energy companies: Could you have one installed for FREE?

Homeowners interested in installing a heat pump may be able to get one for free or for as little as £500 – avoiding the high bills that have put many off replacing their gas boiler.

One of the biggest public objections to replacing boilers with more environmentally friendly heat pumps is the cost of installation.

This varies greatly depending on which type you choose and what type of property you own, but typically costs between £8,000 and £30,000.

No fan: Many homeowners shy away from installing heat pumps because the costs of installing the devices are considered high

Several companies, including Octopus Energy, British Gas and Ovo, are competing to reduce the cost of installing a heat pump.

Now Octopus Energy is announcing that the Cozy Octopus heat pump can be installed for free or for just £500.

However, the prerequisite for this is that the homeowner has a property that does not require any modernization work to make it suitable for installing a heat pump. This could include the need for new insulation, radiators or pipes.

To get the “free” Octopus heat pump, homeowners must also qualify for a large installation grant from the government’s Boiler Upgrade Scheme.

The maximum amount of this grant is currently £6,000 and the Boiler Upgrade Scheme will increase to £7,500 from October 23rd.

An Octopus Energy spokesman said: “Homes that do not require additional work to fit ‘Cozy Octopus’ – such as new radiators, pipes or a hot water tank – could potentially receive the system free of charge, even with the boiler’s current status” upgrade plan .’

Homes that require some upgrades to include a heat pump will be able to purchase the Octopus heat pump for around £3,000 once approved, it said.

British Gas also has a heat pump that can be installed from £499 plus a £7,500 grant.

Ovo has also just announced that it will be launching a heat pump contract that could be installed for just £500 – again assuming a homeowner can get the full Boiler Upgrade Scheme grant of £7,500.

A heat pump plus electricity tariff has also been introduced, which is said to reduce the cost of running a heat pump by £500 per year.

According to the energy company, this is the cheapest way to operate a heat pump in the country. Ovo said 35 percent of households surveyed said the cost of running a heat pump was more important than the cost of installation.

Heat Pump Plus has two pricing systems: one for operating the heat pump itself and one for the rest of a home’s electricity and gas needs.

Mat Moakes, Ovo’s chief commercial officer, said: “The UK is well behind Europe in its heat pump installations.”

“By halving the running costs of a heat pump, we are helping to level the playing field between gas boilers and heat pumps, making them a more viable option for those looking to make the environmentally friendly switch to electric.”

The Heat Pump Plus tariff is not yet live, but interested customers can register their interest on the Ovo website.