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Octopus Energy Heat Pump Installation.

A grant of £5000 is to be made available for homeowners wanting to switch their gas boiler to a brand new air-source heat pump. Register your interest now for an Octopus heat pump.

Speaking in the House of Commons earlier today, Energy Minister Greg Hands said: “Octopus Energy, and indeed others, have said that they think they can make heat pumps an equivalent cost to natural gas boilers by April 2022.

“I’ve got confidence in the ability of British industry and energy companies.”

The Octopus Energy heat pump should cost roughly the same price as a new gas boiler.  The Octopus heat pump installation initiative should be launched in April 2022 according to today’s news. It is expected that the cost of a new Octopus Energy installed heat pump will be in line with the cost of a new gas boiler.  Through forward-thinking and lots of hard work, Octopus is streets ahead of other energy suppliers. It really is quite a triumph and shows their commitment to achieving NetZero.

As a result of the government grant and in-house installers, Octopus looks like they are going to offer Octopus-installed heat pumps cheaper than anything else on the market. If they pull this off it is going to be great news for lots of homeowners.

What’s going on behind the scenes at Octopus Energy right now?

The Octopus Energy heat pump chatter on Twitter in the last few months indicates Octopus is gearing up for a big push on heat pumps installation.  They have been training lots of engineers, who I presume with install the much anticipated Octopus Energy heat pumps.

Octopus Energy has a state-of-the-art facility, just outside of London. It’s basically a giant heat pump training site. Octopus aims to train upwards of a thousand engineers a year to install renewable heating systems. So they are going to have an army of Octopus Heat pump engineers. How cool is that!! The training facility is big enough to build about 20 homes inside. Octopus currently has a small street of full-size houses they use for training. It’s like the Wonka Factory of the heat pump world but their Umpa Lumpas are going to be green instead of pink! 😆🏭

Yes, Octopus has their own indoor street for training heat pump engineers! Come on, that’s pretty great!!

How much does a heat pump cost in the UK? Octopus Energy aims to supply and install a heat pump for the same price as a traditional gas boiler.

In the UK according to the Energy Saving Trust, an air-to-water heat pump typically costs between £9,000 and £11,000 but Octopus aims to more than half this cost!

It looks as though this has been a long-term plan in the making. Octopus Energy intends to use the £5000 government grant to help roll out their heat pump revolution in volume. The government grant can partly fund up to 90,000 new heat pumps over the course of the next 3 years.

By having their own Octopus research centre and in-house training for Octopus energy heat pump installers all they really needed to do is bring down the cost of a heat pump.  I am guessing that by being able to manufacture their own heat pumps in bulk they can now drive down the cost. The government grant could help kick start interest and in turn, help put the wheels in motion.

How can Octopus Energy expect to bring down the price of a heat pump so dramatically? 

By being able to combine the reduced installation cost and reduced hardware cost, Octopus will significantly bring down the price of a complete heat pump installation package. 💃 Now have you stopped wondering why they have a gigantic research and training centre?  💭

If Octopus can supply their own installers and manufacture the heat pumps themselves they can determine any profit margins needed to make it viable. If Octopus is happy to focus on low-profit margins with the main vision being just to get these heat pumps into people’s homes then the customer will see the price of a heat pump drop dramatically! (Well that’s my prediction on how they will slash the price of a heat pump!)

I would love to look around their facility in Slough it sounds quite inspirational! This could be the start of a radical transformation changing how we heat our homes in the UK. The price is key and I think Octopus will have this covered.  They seem to have thought of everything else! 👏

How much does a heat pump cost to run in the UK? Is there going to be an Octopus Energy heat pump tariff is the big question?

There is currently no specific Octopus Energy heat pump tariff. A good option would be the Octopus Energy Agile tariff or the Octopus Go tariff if you also have an electric vehicle. (you have to own an electric vehicle to sign up to Octopus Go. Once on Octopus Go you could also take advantage of the off-peak prices to run your heat pump.)

The Octopus Agile tariff would be great to use in conjunction with a heat pump. Octopus Agile like Octopus Go uses 100% renewable energy but Octopus Agile prices fluctuate throughout the day.  Octopus Agile is based on current wholesale energy prices which change every 30 minutes. You could take advantage of any price drops and top up your hot water tank or heat your home using your heat pump when prices are low.

OCTOPUS GO Tariff OCTOPUS AGILE Tariff. ⏰ 23/01/2022
30.77p per kWh Daily Average Price 34.1p per kWh
7.5p per kWh - Off-peak 00.30 to 04.30 🚘Cheapest 4 hours of energy 31.8p per kWh
24.86p per day standing charge.21p per day standing charge.

octopus heat pumpThe Octopus Agile prices are consistently high at the moment due to the current energy crisis but when prices begin to drop they could be much cheaper than gas.

I think by the summer of 2022 all should be revealed.

If you are on the edge of your seat waiting for an Octopus Energy heat pump tariff I sense that it’s a case of wait and see. The Octopus Energy heat pump tariff will land on the Octopus home page it is just the case of when.  Having watched the company evolve over the last 4 years I just instinctively know that they are beavering away behind closed doors.  Octopus Energy never seems to sleep!! Maybe they will launch the Octopus Energy heat pump installation as a complete package along with the Octopus heat pump tariff? In my mind, this will most likely be in April 2022.

At the moment if you own a heat pump you might be feeling the pinch. The scenario is the same, however, if you have a gas boiler. The energy crisis has seen wholesale energy prices for both gas and electricity rise significantly over the last few months. For customers with smart meters, I really do hope Octopus is able to offer a smart tariff similar to Octopus Go (a cheap off-peak energy tariff for electric vehicle charging) which helps customers look after both the planet and their pocket.

I suspect Octopus will look at a  new smart Octopus heat pump tariff that provides cheap off-peak energy.

If you would like information on other Octopus tariffs you can read my full review of all Octopus Energy tariffs including up to date prices on my comparisons page.  It is updated daily and keeps an eye on the wholesale energy market. Knowing if and when to switch and fix your energy tariff in the current climate is really important, I hope it helps!

Are heat pumps worth it in the UK? 

In the UK, the gas that we burn in our homes to keep us warm and to cook our food accounts for about 14% of our emissions. So in order to help the planet we really need to address this issue, and fast!

The technology involved in an air source heat pump has been around for around 160 years. A fridge, in its simplest form, is a heat pump in reverse. It takes air around it and makes it cold.  Heat pumps are greener as they use electricity instead of gas to heat your home. Now thousands of people could discover heat pumps are an option for them thanks to the government grant.

Do heat pumps save on running costs in the UK?

Heat pumps powered by renewable electricity are the way forward for many homeowners. They are:

  • Around three times more energy-efficient than a gas boiler, without the carbon emissions
  • Reduce hot and cold spots within the home by providing consistent and comfortable warmth.
  • A heat pump has fewer parts and safety concerns. (No worries about carbon monoxide)👏 So a heat pump can last longer and needs less maintenance.

Right now, our world relies on stealing energy and natural resources that we can’t give back. If you want to continue to be a part of the natural world, you have to act like nature. With heat pumps, you don’t have to burn anything, you don’t have to steal anything – we’re mimicking nature. Even when it’s cold outside, we can take some of that energy and produce something with it. – Peter Konowalczyk @Octopus Energy.

I don’t yet own a heat pump but I would love to get rid of my gas-guzzling boiler! Using fossil fuels to heat my home isn’t really what I want for the long term but sadly I have recently moved into a new build and they installed a gas boiler. 🥲 A new home builder should really be required to install a heat pump in any new build. That would make so much sense!

Here are some frequently asked questions about heat pumps. They might help you answer if air source heat pumps work in the UK.

How noisy is a heat pump?

The general consensus is that the sound level the heat pump emits is similar to the level of a whispered conversation. If your heat pump is making any more noise you really need to get your installer to revisit.

Does a heat pump get the water hot enough?

Yes, I have read one review where the homeowner was getting temperatures up to 50 degrees C. I think that’s fine for any home. You can turn up the water temperature by clicking a few buttons.

How much are the energy bills when you have a heat pump?

Similar to running a gas boiler it depends on how long you have it on for. One of the good points of going all-electric is that you can get rid of your gas meter and have no gas service charges on your bill. Up until now, gas has been significantly cheaper than electricity to heat your home BUT things are changing. It is a case of watching this space.

Do you need to change your radiators and pipes when you install a heat pump?

If your house is fairly new or you have new radiators it’s possible that you won’t have to change anything but a good heat pump installer should do a survey as part of their pricing to give you a good idea before you go ahead. If you are planning on doing home renovations or are simply ripping out your old boiler with the government grant it’s a good time to consider installing a heat pump. Quite frankly Octopus Energy has such an amazing reputation they are going to be the go-to supplier in my opinion for heat pumps.

Is it true that you can only have a heat pump if your home is really well insulated?

It goes without saying that to ensure we don’t waste energy we have to ensure that our homes as well insulated. If the name of the game is to reduce your energy consumption then it really is a no-brainer BUT exactly the same argument applies to a gas boiler. It makes no sense to say it is totally fine to inefficiently heat your home with fossil fuels but completely unacceptable to do the same with a heat pump. Both waste energy BUT the gas boiler results in higher carbon emissions. 🏭

Can you have a heat pump if you live in a flat?

I follow @Richardcasson on Twitter. Richard works for Greenpeace and lives in a flat. He has recently had a heat pump fitted am quite sure from the photograph he isn’t on the ground floor. So yes you can have a heat pump installed if you live in a flat. 👏


“Octopus has already committed £10million investment to its research and development and training centre dedicated to the decarbonisation of heat and has begun training engineers at the rate of 1,000 per year. – Greg Jackson, CEO Octopus Energy “

I am delighted that Octopus Energy is my energy supplier!! Well done Greg Jackson and the team at Octopus Energy you are leading the way yet again! 👏 You make this all seem so effortless and you keep coming out so far ahead of any of the other suppliers! You should all be so proud of how Octopus Energy has scaled up and retained its core values.  Plus I have to say I love the stylish hard hats. Clem, your Director of External Affairs looks like she is having far too much fun BUT that’s why you always nail it!

How can I get an Octopus Energy Heat Pump installed?

At the moment information is limited. In terms of the precise logistics of the Octopus Energy heat pump roll-out, there is very little information. You can apply online via their website. This registers your interest in the scheme. You are asked a few quick-fire questions and then your information is saved for them to get back to you if you meet the current criteria.

I will keep this page up to date with any news of an Octopus Energy heat pump tariff or any offers on an Octopus Energy heat pump installation.

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