Halifax has introduced a Green Living Reward cashback offer for its mortgage customers. From 31 July 2024, customers can receive up to £2,000 cashback for installing air source heat pumps and up to £1,000 for other improvements such as solar panels and insulation1.
The offer is described as intended to make homes greener and more cost-efficient1. Customers can also access additional discounts and support through Halifax's partnerships with companies including Effective Home and Octopus Energy1. The full terms of the scheme have not been reported beyond the cashback ceilings and the start date.
"Starting July 31, 2024, mortgage customers can receive up to £2,000 cashback for installing air source heat pumps and up to £1,000 for other improvements like solar panels and insulation."
The cashback sits alongside the government's Boiler Upgrade Scheme, which offers grants of up to £7,500 towards an air source heat pump in England and Wales, with Home Energy Scotland offering grants of up to £7,500 in Scotland2. The most recent government Boiler Upgrade Scheme statistics, dated January 2026, put the average cost of an air source heat pump installed under the scheme in October to December 2025 at £13,431 for an average 8.4kW unit. After the £7,500 grant, a typical household would have paid just under £6,0002.
Running costs depend heavily on the tariff. Heat pumps use electricity, which at the standard price-capped rate costs around four times more per unit than gas2. A household using 11,500kWh of gas a year, the Ofgem average for a two to three person household in a two to three bedroom house, would need a heat pump with a SCOP of at least 2.9 before it began to make annual savings against a gas boiler on standard electricity rates. On a specialist tariff providing cheaper energy, savings would appear even at a lower SCOP of 2.02. Typical UK SCOP is around 3.0, though it can be higher or lower depending on the set-up2.
Why it matters for households
Cashback of this kind reduces the up-front cost of measures that cut a home's reliance on bought-in gas. For a household already considering an air source heat pump, a £2,000 payment changes the arithmetic of the installation quote, though it does not change the running-cost picture, which turns on the efficiency of the unit and the price paid for electricity2.
The £1,000 tier covers insulation and solar panels, measures that reduce demand or generate electricity on site. Insulation in particular affects how well a heat pump performs, since a well-insulated home with correctly sized radiators allows the pump to run more efficiently2.
The offer is tied to a Halifax mortgage, so it is available only to that lender's borrowers. Whether the cashback can be combined with a Boiler Upgrade Scheme grant has not been reported. The scheme's eligibility rules, including which properties and systems qualify, are set out separately under the Boiler Upgrade Scheme eligibility rules2.
What happens next
The offer opened on 31 July 20241. No closing date, budget cap or application process for the Halifax scheme has been reported.
Sources2 cited
- Halifax Boosts Rewards for Green Home Improvements, imsheatpumps.co.uk
- Air source heat pump costs and savings - Which?, which.co.uk