The UK's Advertising Standards Authority (ASA) has banned a Facebook advertisement by Octopus Energy, a leading renewable energy supplier, for misleading consumers about heat pump installation costs.
The ad, seen in September 2024, claimed installations could start from as little as £500 ($663), sparking complaints that it exaggerated affordability and omitted key details about government funding.
The ruling, announced on 30 July 2025, highlights tensions in the UK's push for net zero emissions as energy firms face scrutiny over green technology claims.
Why Was the Ad Banned?
The banned ad stated, 'Installs from £500,' and claimed, 'The government grant covers up to 90% of the costs of a new heat pump.'
The ASA found these claims misleading, as only 5.8% of Octopus Energy's heat pump installations during the campaign cost £500 ($663) or less, far below the 10% threshold required for 'from' price claims under Competition and Markets Authority guidance.
The ad also failed to clarify eligibility for the government's Boiler Upgrade Scheme, which offers up to £5,625 ($7,500) but is subject to strict criteria, such as property type.
The ASA stated, 'We had not seen sufficiently robust evidence that a significant proportion of consumers could purchase a heat pump and have it installed by Octopus Energy for £500.'
X posts from @OilandEnergy noted, 'Just 5.8% of installs qualified at that price—below the 10% threshold.'
Octopus Energy's claim that heat pumps could be installed “from £500” has been banned by the ASA. Just 5.8% of installs qualified at that price—below the 10% threshold. Octopus accuses fossil fuel lobbyists of hypocrisy. #HeatPumps #UKEnergy #ASA #OctopusEnergy…
— OilPrice.com (@OilandEnergy) July 30, 2025
The ruling follows a complaint from the Energy and Utilities Alliance, a trade body representing gas and energy firms.
Octopus Energy's Defence and Industry Context
Octopus Energy, a key player in the UK's net zero emissions drive, defended the ad, citing a consumer survey showing 58% of respondents understood the £500 ($663) price relied on government funding.
Rebecca Dibb-Simkin, Octopus's chief product and marketing officer, said, 'We disagree with this ruling. 13.9% of all heat pumps sold by Octopus during the campaign were £500 or less, exceeding the ASA's guideline of 10%.'
However, the ASA noted that by December 2024, this figure rose to 24%, but the ad's September timing meant the lower figure applied.
The company accused competitors like British Gas, which advertises heat pumps from £499 ($662), of similar practices, with Dibb-Simkin stating, 'This shows the breathtaking hypocrisy from these fossil fuel lobbyists.'
The incident follows a prior ASA reprimand in April 2025 for another misleading Octopus ad, underscoring challenges in marketing low-carbon technologies like heat pumps, which typically cost £7,500–£11,250 ($10,000–$15,000) without subsidies.
Impact on Consumers and Green Goals
The ruling raises questions about transparency in promoting low-carbon technologies as the UK aims for 600,000 annual heat pump installations by 2028.
Only 55,000 were installed in 2024, per Bloomberg, lagging behind Europe. The Boiler Upgrade Scheme, offering £5,625 ($7,500), is critical but requires clear communication about eligibility.
X posts from @BusinessGreen stated, 'Octopus Energy slams "breathtaking hypocrisy" after heat pump advert ban.'
Octopus Energy slams 'breathtaking hypocrisy' after heat pump advert ban https://t.co/iFZIWewfzR
— BusinessGreen (@BusinessGreen) July 30, 2025
Consumers face confusion, with average installation costs far exceeding advertised figures. The ASA advised, 'Octopus must ensure ads making price claims for heat pump installation include all material information, including clarification of any government grant.'
As energy prices rise, Octopus reported 3 million UK households in energy debt in 2024, the incident highlights the need for accurate advertising to build trust in transitioning from gas boilers to heat pumps.
