The octopus energy heat pump advert ban followed an Advertising Standards Authority (ASA) ruling about a Facebook advertisement from September 2024. The advert promoted heat pump installation with the claim Installs from £500. It also said a government grant could cover up to 90% of a new heat pump’s costs.
The case matters because a low advertised price can create a strong impression before customers check their eligibility. Octopus Energy said the £500 figure reflected real customer payments after government support. However, the ASA assessed whether enough consumers could actually obtain that price when the advert appeared.
This article explains the ruling, the funding behind the claim, and what UK homeowners should check before comparing heat pump quotes.
Why Was the Octopus Energy Heat Pump Advert Banned?
The octopus energy heat pump advert ban followed two complaints about the advertisement. One came from the Energy and Utilities Alliance, which questioned whether the £500 claim could be supported. The ASA upheld both issues after reviewing Octopus Energy’s evidence.
Octopus Energy provided sales data covering April 2024 to January 2025. That data showed that 13.9% of customers who purchased a heat pump through the company paid £500 or less. The octopus energy heat pump advert ban focused on whether this low price represented a significant proportion of customers.
However, the ASA looked closely at the period when consumers saw the advertisement. In September 2024, only 5.8% of heat pump sales were made at £500 or below. Earlier available months showed an even smaller proportion. This evidence became important in the octopus energy heat pump advert ban because the advertised price needed to reflect realistic availability.
The ASA therefore decided that the advertised “from £500” price did not represent what a significant proportion of consumers were likely to pay at that time. The regulator also considered the wording potentially misleading because the advert did not clearly explain the funding conditions beside the headline price.
The ASA instructed Octopus Energy not to use the advertisement again in the complained-of form. It also required robust evidence for future “from” prices and clearer information about government funding and eligibility.
How Did the £500 Heat Pump Price Work
The £500 figure did not mean that every customer could purchase and install a heat pump for £500. Instead, Octopus Energy explained that some customers could reach this amount after the Boiler Upgrade Scheme (BUS) funding was applied. This detail provides important context for understanding the octopus energy heat pump advert ban.
For the customers used in its evidence, the total installation cost was £8,000. A £7,500 BUS grant reduced the remaining payment to £500. The advertised figure therefore depended on both the installation price and government support.
Octopus also said its pricing model considered information about individual homes. This included EPC information, floor area, energy use, property features, insulation, and the amount of work required.
That approach shows why heat pump prices can vary between homes. A smaller, well-insulated property may require fewer changes than a larger property needing radiator upgrades, pipework changes, or other preparation.
What Is the Boiler Upgrade Scheme
The Boiler Upgrade Scheme provides government support towards eligible heat pump installations in England and Wales. Octopus Energy currently states that the standard grant is £7,500 for an eligible air source or ground source heat pump. Eligible off-grid homes replacing oil or LPG heating can receive up to £9,000 under the updated scheme.
The scheme does not mean every homeowner automatically receives the same amount. Eligibility requirements apply, and the property and existing heating system must meet the relevant conditions.
Octopus Energy says homeowners and business owners in England and Wales can apply. It also states that Scottish customers can access separate support through Home Energy Scotland.
For this reason, homeowners should check the current grant rules before using an advertised starting price to estimate their own costs.
What Information Was Missing From the Advertisement
The ASA found that the advertisement did not clearly explain that the £500 figure depended on government funding and eligibility requirements. The advert referred to a government grant covering up to 90% of costs, but it did not clearly state the relevant funding amount or conditions beside the headline price.
The regulator also considered additional information important. A customer’s final project could involve costs linked to planning permission, structural surveys, or site preparation. These costs were not necessarily included in the standard quotes described in the ruling.
This point is useful for anyone comparing heat pump offers. A headline figure should not replace a full property-specific quote. Homeowners should check exactly what the quoted price includes before making a decision.
What Happens During an Octopus Heat Pump Installation
A heat pump installation involves more than placing the outdoor unit beside a property. Depending on the home, installers may need to remove an existing boiler and water tank. They may also install a new hot water cylinder and modify the heating system.
Radiators can require upgrades because heat pumps operate differently from traditional boilers. Installers may also run new pipework and complete electrical work before commissioning the system.
The condition and layout of a property can affect the amount of work required. Insulation can also influence heat pump performance. Octopus Energy notes that homes with an EPC rating of D or above are generally more likely to have suitable insulation, although individual properties still need assessment.
After installation, customers need to understand their heating controls. Proper operation helps homeowners get familiar with the new system and its heating pattern.
What Should UK Homeowners Check Before Getting a Quote
Anyone researching heat pumps should start with the complete price rather than focusing only on a from figure. Ask whether the quoted amount already includes the available government grant.
Next, check whether the property qualifies for the relevant scheme. Homeowners should also ask whether the quote includes radiators, hot water equipment, plumbing, electrical work, and standard installation labor.
It is equally important to ask about additional work. Planning requirements, structural surveys, site preparation, insulation, or other property-specific changes may affect the final cost.
A written quote can make these details easier to compare. It should clearly separate the total installation cost, government support, and the amount the homeowner needs to pay.
What the Advert Ban Means for Heat Pump Advertising
The octopus energy heat pump advert ban does not mean that heat pumps cannot be promoted at low prices. Instead, the ASA ruling shows that advertisers need strong evidence behind from pricing.
The regulator specifically required future claims to demonstrate that a significant proportion of relevant consumers could achieve the advertised price. It also required material information about government grants and eligibility to appear clearly in advertising.
This creates a useful lesson for consumers. A starting price can be genuine without being typical for every household. Therefore, the important figure for an individual homeowner remains the final eligible quote.
Conclusion
The octopus energy heat pump advert ban focused on how a £500 starting price could be understood by consumers. Octopus Energy provided evidence that some customers reached that payment after government funding, but the ASA found that the evidence did not demonstrate sufficient availability at the time of the advertisement.
For UK homeowners, the main lesson is straightforward. Do not judge a heat pump installation only by its lowest advertised price. Check the grant, eligibility rules, property requirements, included work, and final customer payment before comparing quotes.
Frequently Asked Questions
What was the octopus energy heat pump advert ban about?
The octopus energy heat pump advert ban concerned a Facebook advertisement that promoted installations from £500. The ASA found that the evidence did not show a significant proportion of relevant consumers could obtain that price when the advert appeared.
Why did Octopus Energy advertise heat pumps from £500?
Octopus Energy said some customers could pay £500 after applying the £7,500 Boiler Upgrade Scheme grant to an £8,000 installation. The figure therefore represented a post-grant customer payment rather than the full installation cost.
Is the Boiler Upgrade Scheme still available?
Yes. Octopus Energy currently states that the Boiler Upgrade Scheme runs until March 2028. Eligible standard heat pump installations can receive £7,500, while qualifying off-grid oil or LPG homes can receive up to £9,000 under the updated support.
Can every UK homeowner get a heat pump for £500?
No. The £500 figure in the disputed advertisement depended on specific circumstances and government funding. Eligibility, property suitability, installation requirements, and additional work can affect the final amount.
What should I check before accepting a heat pump quote?
Check the complete installation price and the grant amount separately. Also ask about radiators, hot water equipment, plumbing, electrical work, site preparation, surveys, and other possible additional costs.
