Heat Pump Deals, Discounts, Offers & savings [May 2025]

🏛️Government Heat Pump Grants and Financial Incentives in 2025

Boiler Upgrade Scheme (BUS) – Save £7,500 on Your Heat Pump Installation

The Boiler Upgrade Scheme (BUS) is one of the UK government’s most significant financial incentives for transitioning to heat pumps. It offers a substantial grant to help homeowners cover the cost of installing air or ground source heat pumps, making the switch from fossil fuel systems more affordable.

• Grant Amount: £7,500 for air or ground source heat pumps.

• Eligibility: Homeowners in England and Wales replacing fossil fuel systems.

• Application: Through MCS-certified installers.

• Validity: Until March 2028.

  
  

Energy Company Obligation (ECO4) – Full Funding for Low-Income Homes

• Support: Up to 100% funding for low-income households.

• Coverage: England, Scotland, and Wales.

• Focus: Whole-house retrofits, including heat pumps.

• Duration: Until March 2026.

Warm Homes Plan – Up to £30,000 for Home Energy Upgrades

• Funding: Up to £30,000 for energy-saving home improvements.

• Components: £15,000 for energy performance enhancements and £15,000 for low-carbon heating devices.

• Administration: Through local authorities.

• Timeline: 2025–2028.

Regional Heat Pump Grant Schemes in the UK

Scotland

• Home Energy Scotland: Up to £7,500 grant and £7,500 interest-free loan.

• Warmer Homes Scotland: Grants up to £10,000 for energy-efficient systems.

Wales

• Nest Scheme: Potential full coverage for eligible low-income households.

  
  

Northern Ireland

• NISEP: Up to 100% funding based on income and scheme specifics.

0% VAT on Heat Pump Installations – Save on Installation Costs

• Benefit: Zero VAT on domestic heat pump installations.

• Validity: Until March 2027.

💡Energy Supplier Heat Pump Offers & Tariffs (May 2025)

Octopus Energy's Heat Pump Offerings

Cosy Heat Pump System

• Product: Octopus Cosy 6 and Cosy 9 heat pumps, designed and manufactured in the UK.

• Features:

  • High efficiency with water temperatures up to 75°C.

  • Utilizes eco-friendly R290 refrigerant.

  • Includes a hot water cylinder, Cosy Hub controls, and Cosy Pods for room-specific temperature management.

  • Smart integration with the Octopus Energy app for remote control and monitoring.

  • Regular software updates to enhance functionality over time.

• Installation Packages:

  • Eco Install: Lower upfront cost, optimized for energy efficiency.

  • Turbo Install: Higher upfront cost, designed for higher heat output and compatibility with existing radiators.

• Warranty: 8-year product warranty included.

British Gas

• Installation Costs: Starting from £499 in Scotland and £2,999 in the rest of the UK, post-£7,500 Boiler Upgrade Scheme (BUS) grant. British Gas also offers a price match guarantee for MCS-accredited installations.

• Electricity Tariff: 14p per kWh for heat pump usage for 12 months post-installation.

• Partnerships: Collaborations with Panasonic and NIBE to enhance heat pump services and support.

• Additional Offers: Participation in the "Clean Heat Streets" trial, offering half-price electricity for heat pump users until March 2025.
  

EDF Energy

• Installation Discounts: £500 off new air source heat pump installations.

• Tariff Offers:

  • Heat Pump and Power Tracker Bundle: Includes free electricity for December 2025 and a 7-year service package. 

  • Zero Standing Charge Tariff: Provides six hours of discounted, zero-carbon electricity daily.

Scottish Power

• Installation Discounts: £600 off air source heat pump installations between April 14 and June 30, 2025.

• Heat Pump Saver Tariff:

  • Off-Peak Rate: 14p per kWh between 11am and 4pm daily.

  • Standard Rate: Approximately 27.164p per kWh during other times.

  • Eligibility: Requires a smart meter and a heat pump.

OVO Energy

• Heat Pump Plus Tariff:

  • Rate: 15p per kWh for heat pump usage.

  • Savings: Average annual savings of £440 compared to standard variable tariffs.

  • Eligibility: Available to OVO customers with compatible heat pumps.
    

• Additional Offers:

  • Beyond Programme: Allows customers to bank up to a year's worth of free heating, valued over £340. 

  • Vaillant Partnership: Purchase of a Vaillant aroTHERM Plus heat pump between April 11 and July 11, 2025, with the Heat Pump Plus add-on, earns a ovo £30 bill credit. 

    
    

Energy provider heat pump deals and discounts

Energy Supplier	Installation Discount	Special Tariff Rate	Additional Benefits
British Gas	From £499 (Scotland)	14p/kWh for 12 months	Partnerships with Panasonic and NIBE; Clean Heat Streets trial
EDF Energy	£500 off installations	Free electricity in Dec 2025; Zero standing charge tariff	7-year service package
Scottish Power	£600 off installations	14p/kWh (11am–4pm); ~27.164p/kWh otherwise	Requires smart meter and heat pump
OVO Energy	Not specified	15p/kWh for heat pump usage	Up to £440 annual savings; Beyond Programme; Vaillant partnership

🏦Heat Pump Cashback Offers from UK Banks in 2025 – Maximise Your Savings

Several UK banks are supporting the transition to energy-efficient heating systems by offering substantial cashback rewards for customers installing heat pumps. These cashback offers align with the UK’s push towards net-zero carbon emissions and provide homeowners with financial incentives to make their homes more sustainable. If you’re planning to install a heat pump in 2025, these bank rewards can significantly offset your upfront costs.

Barclays Heat Pump Reward – Up to £2,000 Cashback for Energy Efficiency

Barclays offers a generous heat pump reward, providing up to £2,000 cashback for residential mortgage customers who choose to make their homes more energy efficient by installing heat pumps. To qualify, homeowners must use a TrustMark-approved installer, ensuring high standards of workmanship and safety.

• Cashback Amount: Up to £2,000

• Eligibility: Residential mortgage customers using a TrustMark-approved installer

• Additional Perks: Barclays’ Green Home Mortgage options may also provide preferential rates for energy-efficient homes, potentially reducing your long-term mortgage costs while lowering your carbon footprint.

• Why Choose Barclays: By choosing a Barclays heat pump reward, homeowners not only reduce their carbon emissions but can also benefit from lower energy bills and potential savings on mortgage interest, aligning with their broader green living goals.

  
  

Other Bank Heat Pump Cashback Offers in 2025

Lloyds is a leading UK bank offering a substantial cashback reward of up to £2,000 for customers installing heat pumps as part of their home energy efficiency improvements. This incentive is designed to support the UK's green transition by making low-carbon heating more accessible and affordable.

• Cashback Amount: Up to £2,000

• Eligibility: Mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal after 31 July 2024.

• Additional Perks: Lloyds also offers green mortgage options that provide preferential rates for energy-efficient homes, potentially lowering monthly payments and long-term interest costs.

• Why Choose Lloyds: With a commitment to sustainability, Lloyds' green mortgage products provide financial incentives for homeowners to reduce their carbon footprint while benefiting from lower energy bills and increased property value.

  
  

Halifax, part of the Lloyds Banking Group, also offers up to £2,000 in cashback for customers who choose to make their homes more energy-efficient by installing heat pumps. This incentive reflects Halifax’s commitment to supporting homeowners in reducing their carbon emissions and energy costs.

• Cashback Amount: Up to £2,000

• Eligibility: Mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal.

• Additional Perks: Like Lloyds, Halifax provides green mortgage options that reward homeowners with energy-efficient properties, potentially offering lower interest rates and flexible repayment options.

• Why Choose Halifax: Halifax's extensive network and customer-focused approach make it a convenient choice for homeowners looking to finance their heat pump installation while reducing their carbon footprint. | Santander Heat Pump Cashback – Up to £1,000 for Green Home Upgrades |

Santander supports the UK's green energy transition by offering up to £1,000 in cashback for homeowners installing heat pumps as part of their energy-efficient home improvements. This cashback is part of Santander’s broader green mortgage offering, which encourages sustainable living through financial incentives.

• Cashback Amount: Up to £1,000

• Eligibility: Mortgage customers applying for additional borrowing for energy-efficient home improvements.

• Additional Perks: Santander’s green mortgages often come with competitive interest rates for energy-efficient homes, helping homeowners save on both energy bills and mortgage costs over time.

• Why Choose Santander: With a strong focus on sustainability, Santander provides a straightforward path for homeowners to reduce their carbon emissions while benefiting from financial rewards. | Virgin Money Heat Pump Cashback – Up to £250 for Energy-Efficient Upgrades |

Virgin Money offers a modest but valuable cashback incentive of up to £250 for homeowners installing heat pumps as part of their property improvements. This offer supports Virgin Money’s commitment to promoting sustainable living and reducing carbon emissions.

• Cashback Amount: Up to £250

• Eligibility: Residential or buy-to-let mortgage customers applying for additional borrowing for home improvements.

• Additional Perks: In addition to cashback, Virgin Money provides competitive mortgage rates for energy-efficient homes, potentially reducing overall borrowing costs.

• Why Choose Virgin Money: While the cashback amount is smaller, Virgin Money’s competitive interest rates and flexible mortgage options make it a worthwhile choice for those looking to finance green home upgrades.

Bank	Cashback Amount	Eligibility Criteria
Lloyds	£2,000	Mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal after 31 July 2024. Lloyds also offers green mortgage options that provide preferential rates for energy-efficient homes, potentially lowering monthly payments and long-term interest costs.
Halifax	£2,000	Mortgage customers applying for a new mortgage, additional borrowing, or switching to a new deal. Halifax provides green mortgage options that reward homeowners with energy-efficient properties, potentially offering lower interest rates and flexible repayment options.
Santander	£1,000	Mortgage customers applying for additional borrowing for energy-efficient home improvements. This cashback is typically part of Santander’s broader green mortgage package, which supports homeowners making sustainable upgrades.
Virgin Money	£250	Residential or buy-to-let mortgage customers applying for additional borrowing for home improvements. Virgin Money also offers competitive mortgage rates for energy-efficient properties, which can further reduce long-term costs.

Optimising your choice of financial support, including the Barclays heat pump reward, can make a significant difference in reducing your upfront installation costs and long-term expenses. Be sure to explore all available options to maximise your savings in 2025.