Energy supplier Octopus Energy has partnered with MBNA Limited to pilot a new scheme to make it easier for customers to purchase heat pumps.
MBNA, which is part of Lloyds Banking Group, will support Octopus by adding its finance offering for heat pumps allowing customers to benefit from a flexible payment option.
This financing option will initially be available for a four-month pilot and then be explored for other home decarbonisation products such as solar panels.
Combining this financing option with Octopus Energy’s “lowest price” for heat pumps in the UK will enable the technology to become even more accessible to the wider market. This has been assisted via the government’s Boiler Upgrade Scheme (BUS) grant with prices regarded as “90% lower than average” by the energy supplier.
The zero-emission technology can be installed at £3,000 as opposed to £8,000 via the government’s Boiler Upgrade Scheme.
“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,” said Rebecca Dibb-Simkin, chief product officer at Octopus Energy Group.
This new agreement builds upon a similar one signed last year, as reported by Current±. The agreement saw Lloyds Banking Group, Octopus Energy and Halifax allow customers who use mortgage borrowing to finance the installation of heat pumps.
Commenting on the new agreement, Hiral Gogoi, loans director, at 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.”
