U.K.-based Lloyds Bank is offering a free propane (R290) heat pump to U.K. households eligible for the government’s Boiler Upgrade Scheme (BUS) when they take out or renegotiate a mortgage by November 24.
As part of the deal, Lloyd’s partner, Octopus Energy, will inspect the home to determine if it qualifies for the BUS grant and install an air-to-water unit that provides space heating and hot water. Once the heat pump is installed and the BUS grant applied, the bank pays the remaining balance directly to Octopus.
“This is a market-first offer for our customers that directly supports our efforts to help reduce the carbon impact of British homes,” said Kate Townson, Relationship Mortgages, Acquisitions and Performance Director at Lloyds Bank. “[It will] deepen our understanding of the broader challenges customers face ‒ beyond financial considerations ‒ as they move to more sustainable energy solutions.”
Meeting qualifications: Lloyd sets a few other parameters for the free heat pump besides the new or renegotiated mortgage.
- The BUS grant requires replacing a fossil fuel boiler or a straight electric heating system, while Lloyds stipulates a home EPC (Energy Performance Certificate) rating of C or D.
- A homeowner must hold or open a Club Lloyd bank account.
- The heat pump must be claimed within 12 months of obtaining the mortgage.
The unit: Under its Cosy line, launched in December 2023, Octopus manufactures 6, 9, and 12kW (1.7, 2.6 and 3.4TR) residential R290 air-source heat pumps in its facility in Craigavon, Northern Ireland.
- The units manufactured by Octopus provide a 70°C (158°F) maximum outlet flow temperature, with an SCOP up to 3.9.
- Octopus estimates that a unit installed for a three-bedroom home costs around £11,400 ($15,000/€13,000), according to Lloyds. The BUS grant covers £7,500 ($9,900), with the bank paying off the remaining £3,900 ($5,100/€4,440) for qualified homeowners.
- “During your free home survey, we’ll measure your heat loss to see which model fits you best,” Octopus says. “If [our product] is not the right fit, we’ll match you with the perfect alternative heat pump from Daikin for the same price.”
Compatible BUS options: Carrier Solutions UK, Daikin Europe and Viessmann Group all offer residential R290 air-source heat pumps eligible for the U.K.’s BUS grant.
- In January, Carrier Solutions UK, a division of Carrier Global Corporation, launched AquaSnap 30AWH-P, a reversible propane-based monobloc heat pump, covering capacities from 4 to 14kW (1.1 to 4TR).
- Daikin Europe, a division of Japanese manufacturer Daikin Industries, offers an R290 air-to-water residential heat pump with heating capacities of 8, 10, 12 and 14kW (2.3, 2.8, 3.4 and 4TR) under its Altherma 4 HS-S+ series.
- Under its Vitocal line, German-based Viessmann Group offers an R290 monobloc aimed at replacing domestic boilers, with heating capacities of 10, 13, and 16kW (2.8, 3.7 and 4.5TR).
Quotable: “Heat pumps are quite transformative ‒ our customers tell us they are cosy, efficient and reliable, and now for some Lloyds mortgage customers they can be completely free,” said Rebecca Dibb-Simkin, Chief Product and Marketing Officer at Octopus Energy. “It’s a no-brainer of a deal. What better way to welcome your new home than with gas-free heat and no upfront cost?”
“This is a market-first offer for our customers that directly supports our efforts to help reduce the carbon impact of British homes.”
Kate Townson, Relationship Mortgages, Acquisitions and Performance Director at Lloyds Bank
