The Advertising Standards Authority (ASA) has banned a recent Octopus Energy heat pump advert, ruling that the campaign was misleading due to unrealistic price claims that failed to reflect true costs for most consumers.
The now-banned social media advert by Octopus Energy claimed that heat pump installations could be accessed “from as little as £500.” While this pricing was technically possible under certain conditions—including successful application for the government’s Boiler Upgrade Scheme (BUS)—the ASA concluded that the ad omitted crucial information, thereby breaching multiple rules of the UK’s advertising code.
Why the Octopus Energy Heat Pump Advert Was Banned
The Octopus Energy heat pump advert ban came after scrutiny revealed that only a small fraction of customers could access the £500 installation package. Specifically, ASA data showed that just 5.8% of Octopus’s heat pump sales were priced at or below the advertised figure in the relevant period. Furthermore, key information about the BUS grant, which subsidizes up to £7,500 of the installation cost, was not mentioned directly in the advertisement.
While Octopus Energy defended the ad by arguing space limitations and highlighting a “learn more” button that led to detailed FAQs, the ASA ruled that the advert still misled consumers. The regulator cited breaches of the CAP Code under rules 3.1 (Misleading Advertising), 3.7 (Substantiation), and 3.22 (Prices).
The ASA emphasized that any pricing claim in advertising must represent the cost that most consumers can reasonably expect to pay, without needing to navigate complex eligibility criteria or hidden extra costs like planning permissions and structural surveys.
Octopus Energy Responds
In response to the Octopus Energy heat pump advert ban, the company said it had used a predictive model based on tens of thousands of home surveys and government EPC data to determine that between 10% and 15% of UK homes could qualify for the low-cost deal. Octopus also stated that most of its 2024 quotes came in below the BUS-supported average of £5,321.
However, the ASA maintained that the claim exaggerated both the availability and scale of the advertised discount. As a result, the ad cannot be used again in its current form.
What This Means for Consumers
The ruling underscores the challenges facing consumers and companies alike in promoting clean energy solutions such as heat pumps. Although financial support schemes like the BUS exist, upfront costs still exceed £4,000 for most homes, even after subsidies. This remains a critical barrier to wider heat pump adoption across the UK.
As of 2024, just 1% of UK homes had a heat pump installed—one of the lowest adoption rates in Europe. While the UK government has set a target of 600,000 installations per year by 2028, current figures are far from that goal, with only 55,000 units installed in 2022.
The ASA’s decision may prompt energy companies like Octopus Energy to reassess how they promote green technology offers, particularly those relying on government subsidies. Consumers, meanwhile, are advised to read the fine print and explore all associated costs before committing to such installations.
Looking Ahead: A Warm Homes Plan
A new government initiative, the Warm Homes Plan, is expected to launch later this year with a £13.2 billion budget to fund energy efficiency upgrades, including heat pumps. Experts say it must also deliver better consumer guidance, transparent cost structures, and clearer eligibility criteria to drive adoption forward.
Final Thoughts
The Octopus Energy heat pump advert ban is a pivotal moment in the UK’s clean energy transition, highlighting both the opportunities and the need for transparency when promoting green technologies. While Octopus Energy remains a major player in the renewable energy sector, this incident serves as a reminder that even well-intentioned campaigns must be grounded in reality and clarity.
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