RENEWABLE energy firm Octopus yesterday struck a deal with Lloyds Banking Group to roll out low-cost heat pumps to customers, in a tieup that aims to help decarbonise domestic heating.

The two firms said the move was part of a wider "strategic partnership" that would encourage customers to retrofit existing UK properties with renewable tech and increase energy efficiency.

Lloyds said the pilot scheme had launched through the Halifax brand and would allow customers to use mortgage borrowing to fund the switch to an air-source heat pump and bag £1,000 cashback after installation.

Rebecca Dibb-Simkin, chief product officer at Octopus, said the pilot came at a "crucial time" with customers facing "a dual climate and cost of living crisis".

It comes after ministers rolled-out a "boiler upgrade scheme" which provides grants of £5,000 to move away from polluting boiler systems.

While heat pumps have faced criticism due to prohibitively high prices that can reach £13,000, Lloyds and Octopus claimed the cost of installation could drop to £2,000 under their cashback scheme.

(c) 2022 City A.M., source Newspaper