Energy giant E.on has become the first major energy supplier to offer 0% finance deals on boilers – available even if you aren't one of its customers.

The firm will now allow you to spread the cost of a new boiler – which can typically be about £2,300 according to the Energy Saving Trust – through an interest-free loan available over a payment period of two, three or four years.

Although 0% boiler finance deals are on offer from firms such as EnergyCare Group and Boiler Plan UK that allow you to spread the cost interest-free, this is the first from a major energy supplier.

Do a comparison to find your cheapest deal and see if you can save £100s using our free Cheap Energy Club.

How does the E.on scheme work?

It's open to UK residents who are aged over 18 and regularly employed for at least 16 hours a week, self-employed, retired or on long-term disability benefit. You'll also need to pass a credit check when applying for the finance.

There's no need to switch to E.on if you want to get a new boiler under this offer, and no need to stick with the company if you're an existing customer, who takes up the offer and then wants to switch away later. Here's how it works:

  1. Get a quote via its website or by calling 0330 400 1083.
  2. You'll then have a 'no-obligation home survey' visit which details the offer and cost.
  3. Compare the quote to other available offers to ensure you're getting the best deal.
  4. If you decide to go ahead you can book for installation (its cost will be part of the quote).
  5. Once installed, the new boiler is covered by a five-year manufacturer's guarantee.

E.on is offering two 0% finance options – you can choose to pay no deposit or a 50% deposit letting you borrow between £1,000 and £10,000 on your new boiler installation and spreading the cost over two to four years. Pass the credit check and you'll get the deal.

Based on a cost of £2,500 and a three-year repayment period, you'd pay £69.44 for 35 months and a final payment of £69.60. Or, if you paid £1,250 upfront, your repayments would be £34.72 for 35 months and a final payment of £34.80.

If you miss a payment, it will affect your credit score, and you may be charged for late payments. If you miss multiple payments, your debt may be passed to a collection agency.

If you take up the offer, E.on Energy Installation Services will be credit broker, while Barclays Partner Finance – a trading name of Clydesdale Financial Services and part of Barclays – will act as finance lender. Both are regulated and authorised by the Financial Conduct Authority.

According to the supplier, the boilers are from Worcester Bosch Group and rated 'A' for efficiency.

Bear in mind when comparing offers to take into account any installation fees. If you decide you'd rather arrange installation yourself, you could spread the cost with a 0% spending credit card.

The longest 0% period available at the time of writing is 31 months – see our Best 0% Credit Cards guide for more – and if something goes wrong, the credit provider is jointly liable for the purchase.

Make sure to repay in full before the end of the 0% period, or you'll likely get stung by the high APR that typically kicks in with these cards.

E.on offers interest-free finance for replacement boilers
E.on has launched a service offering interest-free finance for replacement boilers

Some will be eligible for a free replacement boiler

If your boiler is old, inefficient or faulty, you may be eligible for a free replacement or repair through the so-called Energy Company Obligation scheme.

Currently four of the big energy suppliers offer grants for new boilers and fitting, though you may face extra costs such as for additional radiators. However, you should be told about these beforehand.

You're likely to qualify if:

  • You get tax credits and have a household income of less than £16,010 and...

  • You receive income-based benefits such as pension credit or income support, and you have children, a disabled person in the household, or are over 60.

You won't be able to get a free boiler if you live in a housing association property or are a council tenant. Instead, this will be arranged through their own schemes.

See our Free Insulation and Boilers guide for more information.