Wiltshire-based Luthmore was founded in 2022 by Craig Wilkinson and Martin Gutkowski, both ex-Dyson engineers who previously worked together on projects including the vacuum maker’s abandoned electric car programme. Their ambition is to replace gas combi boilers in small and medium-sized homes with an all-electric system that fits into the same space and delivers comparable performance.

The start-up has now raised £12.4m in total funding, including a recently closed and heavily oversubscribed £5.5m round. Backers include housing developers, residential management companies, plumbing groups and high-net-worth individuals, alongside a £1m investment from the British Business Bank via the South West Investment Fund, delivered by The FSE Group.

As part of its next growth phase, Luthmore has also appointed Hervé Dehareng, a former senior innovation director at Dyson, as chief executive. Dehareng led global launches of flagship Dyson products including the hand dryer and bladeless fan, and has previously held senior roles at Accenture.

“I want to make the Luthmore boiler the electric vehicle equivalent for home heating within three years,” Dehareng said.

A different route to electrified heating

Unlike heat pumps, which often require significant insulation upgrades, larger radiators and outdoor units, Luthmore’s boiler is designed as a near drop-in replacement for a gas combi. The unit is the same size as a standard boiler and uses lithium iron phosphate (LFP) batteries to store electricity when it is cheaper — such as overnight or from solar panels — and release it at higher power during peak demand.

The system delivers hot water at up to 30kW and central heating at 10kW, without the need for a hot water tank or radiator replacements. According to Wilkinson, this makes it suitable for flats and terraced homes where space constraints or upfront costs make heat pumps impractical.

“There’s a substantial number of homes where a heat pump is not going to be appropriate,” he said. “Our boiler can fit in the same space as a gas combi and give similar performance, without the upheaval.”

The company estimates its target market at five to six million UK homes, particularly smaller properties transitioning away from gas.

Cheaper to buy, pricier to run

While Luthmore’s boiler undercuts heat pumps on upfront cost, expected to retail at around £4,500 compared with £13,000 for a typical heat pump installation, its founders are candid about the challenge posed by Britain’s energy pricing.

Electricity remains significantly more expensive than gas under Ofgem’s price cap, meaning the running costs are higher. Luthmore estimates annual heating and hot water costs of around £667 for a typical two-bedroom flat, compared with £444 for a gas boiler and £556 for a heat pump.

“That’s the reality of the UK energy system right now,” Wilkinson said, adding that levies and network charges placed disproportionately on electricity risk undermining the transition to electrified heating.

Policy backdrop and investor interest

The funding round and leadership appointment come as the government prepares to publish its long-awaited Warm Homes Plan and implement the Future Homes Standard in 2026, both of which are expected to accelerate the shift away from fossil-fuel heating.

Gas boilers have already been banned in new homes, and while Energy Secretary Ed Miliband has stepped back from an outright ban on gas boiler replacements by 2035, ministers remain under pressure to expand low-carbon heating options.

At present, only heat pumps qualify for grants of up to £7,500 under the Boiler Upgrade Scheme, though officials have said they are still exploring the role of alternative electrified systems.

For investors, Luthmore’s pitch is about pragmatism rather than purity. “With regulatory tailwinds, a strong patent portfolio and early traction with developers and installers, we see a compelling pathway for Luthmore to help households cut emissions,” said Ralph Singleton of The FSE Group.

Whether battery-powered boilers can scale fast enough, and overcome the electricity-gas price gap, remains an open question. But with more than £12m raised and a growing policy push to decarbonise homes, Luthmore is betting there is room in the market for an electric option that sits somewhere between gas boilers and heat pumps.

The post Ex-Dyson engineers plot electric boiler to rival heat pumps appeared first on Electric Home.

The founders of Luthmore, Craig Wilkinson and Martin Gutkowski, say their breakthrough technology could solve the biggest barrier facing the UK’s transition away from gas heating: the fact that heat pumps and existing electric boilers still struggle to match the power and responsiveness of traditional gas combi boilers.

Their innovation comes as the Government attempts to navigate a politically and technically fraught heating transition. Last month, energy secretary Ed Miliband scrapped plans to ban new gas boilers from 2035 and instead expanded heat pump grants to up to £7,500 — alongside a new £2,500 grant for smaller units that can also cool homes. But with gas still cheaper and quicker for most households, uptake of green alternatives remains sluggish.

Wilkinson and Gutkowski believe their product can change that calculus. Inspired, quite literally, in the shower, Gutkowski began sketching out whether a compact electric boiler could supply the same 30kW-equivalent bursts demanded by British households at peak times — typically when multiple showers or taps run at once — by drawing power from an integrated battery instead of the grid.

“He did the maths on how big the battery needed to be and whether it could fit in the same space as a combi boiler,” said Wilkinson. “Once we realised it was possible, we knew we had to build it.”

Traditional electric boilers max out at around 10kW, leaving them unable to cope with high hot-water demand unless combined with large hot water tanks. Heat pumps also require tanks and outdoor units, making them impractical or space-intensive in many homes.

Luthmore’s all-electric boiler, however, uses battery energy storage to deliver short bursts of high power, mimicking the output of a gas boiler and eliminating the need for hot water tanks. Crucially, it occupies the same cupboard-sized footprint as a combi boiler and uses the same pipework, with only a dedicated electrical connection required.

The system can charge overnight when electricity is cheaper and pair with rooftop solar panels. A patented feature even stores waste heat produced by the boiler itself — contributing around 15% of the energy stored in the battery during a full charge. “Our Dyson experience taught us how important patents are if you want investment and a competitive edge,” Wilkinson said.

At £4,500 excluding VAT, the unit is more expensive than a standard gas boiler but cheaper than most heat pumps, which typically cost between £7,000 and £13,500. Luthmore’s investors include major housebuilders and property-management firms preparing for the Future Homes Standard, which will require new-build properties to use low-carbon heating and generate electricity on-site.

Trials are under way with landlords including Estates Services at the University of Oxford, and Luthmore is training installers nationwide.

Around three-quarters of Luthmore’s team are former Dyson engineers, reflecting what Wilkinson calls a “university of Dyson” effect across Wiltshire and the South West. The company builds boilers at its Chippenham factory but plans to shift to contract manufacturing in Singapore and Malaysia from 2026 to scale production into the thousands.

Wilkinson also urged policymakers to extend support beyond heat pumps, saying grants should be “technology agnostic”.
“Naysayers across the industry and within government need to pay proper attention to the full spectrum of the clean heat market,” he said. “The right policy landscape could save households money and cut carbon faster.”

With larger trials now under way, Luthmore expects to ramp production next year as developers identify which property types are best suited to the system. “We’re at the point where we’re working with developers who have the trial units and are planning bigger pilots,” Wilkinson said. “From there, we’ll scale.”

The post Ex-Dyson engineers unveil battery-powered boiler designed to outperform heat pumps appeared first on Electric Home.

The Stockholm-based firm, launched in June 2023, has quickly expanded into Germany, Italy and the UK, achieving an annual sales run-rate of €200 million. Aira’s customer offer combines monthly payment plans, end-to-end service, and a 15-year guarantee. The company employs 1,200 staff, operates 18 hubs and has opened four Aira Academies to train heat pump installers.

Chief executive Peter Prem said the funding reflects “the strong, long-term support” of its investors and will help Aira “double down” on its mission to take Europe off gas. “We’re transitioning from start-up to scale-up, launching new innovations, and accelerating our growth to bring clean energy-tech to millions of homes,” he said.

The fresh capital will be used to expand Aira’s operations, scale its intelligent energy-tech offering, invest in its Swedish R&D centre, and increase manufacturing capacity at its Wroclaw, Poland factory. The company also plans to deepen its footprint in existing markets and strengthen partnerships in the home and energy sectors to widen its customer base and deliver further cost savings.

With 130 million gas boilers still in use across Europe, residential heating accounts for 10% of the continent’s CO₂ emissions. Aira says replacing a gas boiler with one of its air source heat pumps can cut heating costs by up to 40% and eliminate emissions entirely when paired with clean energy tariffs.

Prem believes the opportunity is vast: “The European heat pump market is expected to exceed €150 billion by 2030. With our vertically integrated model and world-class products, Aira is ready to lead the clean energy transition – one home at a time.”

The post Aira secures €150m to accelerate Europe’s switch from gas boilers to heat pumps appeared first on Electric Home.

The scheme, which forms part of the £6.6 billion warm homes plan and will be allocated in next year’s spending review, is expected to target both fuel-poor and wealthier families.

Under proposals still in development, low-income households would receive upfront grants for installing solar technology, while households on higher incomes could access cheap loans underwritten by the government. Repayments might be added to energy bills at a more affordable rate, potentially lowering annual electricity costs. Ministers are also weighing whether to boost the current rate homeowners earn by selling surplus power back to the grid, which stands at just 4.1p per kilowatt-hour (kWh)—far lower than the average electricity price of around 24p/kWh.

Officials believe that helping more people switch to homegrown solar energy could be critical for broader decarbonisation efforts. The government’s target includes installing 600,000 heat pumps annually by 2028, but many consumers find them costly both to install and operate. Rooftop solar and battery storage could transform this balance, offsetting electricity charges and shortening the payback period—currently averaging between five and nine years.

The energy department’s clean energy plan, released earlier this month, aims to boost installed solar power capacity from 16.6GW to up to 47GW by 2030, with around a third expected to come from residential schemes and the remainder from large-scale solar projects. Ministers say ramping up rooftop installations could ease pressure on using agricultural land for solar farms.

Despite cross-party support for the concept, the scheme’s details still require Treasury approval. Whitehall officials point to past initiatives that proved complex and had lower-than-expected uptake. Budget constraints have also played a role: Rachel Reeves, the Chancellor, has already scaled back annual net-zero spending plans from £28 billion to £15 billion.

Industry voices have welcomed the proposal. Chris Hewett, chief executive of the Solar Trade Association, said solar would have a “critical role” in achieving the government’s clean power targets, while Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, stressed that more rooftop arrays would reduce controversy over land use.

A government spokesperson confirmed more details would follow once the spending review concluded, and emphasised the central role of consumer-focused incentives in the push to halve food waste by 2030 and scale up low-carbon heating. Meanwhile, the newly formed circular economy taskforce is expected to outline further waste and efficiency measures next year.

The post Millions of homeowners set to gain from government’s solar power pledge appeared first on Electric Home.

According to a report by the NAO, assumptions regarding consumer demand for heat pumps have proven to be overly optimistic. Despite government efforts to promote awareness and offer grants to facilitate the replacement of oil and gas-fired boilers with heat pumps, public engagement in the transition remains lacking.

The report highlighted that only 18,900 heat pumps were installed under the grant scheme between May 2022 and December 2023, representing less than half of the anticipated installations. While there has been a modest increase in installations following an increase in grant funding, doubts persist regarding the sustainability of this upward trend.

Two primary barriers to increased installations were identified: poor awareness among consumers and the high upfront cost of heat pumps, despite grant assistance. Heat pumps are considerably more expensive than traditional gas boilers, despite their greater efficiency.

The government has set ambitious targets for the installation of 600,000 heat pumps annually by 2028. However, divisions within the Department for Energy Security and Net Zero (DESNZ) regarding the strategies to achieve this goal have emerged.

A mechanism aimed at penalising boiler manufacturers failing to meet electric heat pump sales targets has led to conflict, with companies raising prices to offset potential fines. Energy Secretary Claire Coutinho has initiated an investigation by the Competition and Markets Authority (CMA) into the home heating market in response to these developments.

The NAO recommended that the government make a decision on the role of hydrogen in reducing emissions before the planned deadline of 2026.

Gareth Davies, head of the NAO, emphasized the necessity for comprehensive engagement with households to achieve the government’s decarbonization objectives. He noted that progress in raising awareness and encouraging the adoption of low-carbon alternatives has been slower than anticipated.

In response, a spokesperson for DESNZ defended their approach, highlighting the success of initiatives such as the heat pump grant increase and the Welcome Home to Energy Efficiency campaign aimed at educating households about emission-reducing measures.

Despite these efforts, the government faces continued scrutiny over its ability to effectively drive the transition to clean heating and achieve its emissions reduction targets.

The post Government Warned Weak Heat Pump Uptake Hampers Emission Reduction Efforts appeared first on Electric Home.

The increase in prices is attributed to covering fines imposed on manufacturers for potential non-compliance with the new targets, requiring the installation of eco-friendly heat pumps in homes.

This decision, which may not sit well with environmental advocates, follows Chancellor Rishi Sunak’s earlier announcement of a revision to the UK’s net-zero policies, including a delay in the deadline for prohibiting new petrol and diesel cars.

Part of the government’s clean heat strategy, the targets were formulated to accelerate the phasing-out of gas boilers, aiming for 600,000 annual installations of eco-friendly heat pumps by 2028.

Starting in April, fossil fuel boiler manufacturers will be mandated to achieve a quota for heat pump installations, equivalent to 4% of their gas or oil boiler sales. Failure to meet this requirement will result in a £3,000 fine for each installation shortfall.

Reports surfaced last year about lobbyists from the gas boiler industry attempting to postpone the implementation of these measures. Energy Secretary Claire Coutinho, who assumed office in September, is reportedly considering scrapping the targets and fines, expressing concerns about their impact on consumers.

A government source told the Sunday Times, “Boiler manufacturers have imposed unjustifiable price hikes on families – this is not acceptable. We are revisiting the policy and anticipate manufacturers to rectify their pricing immediately.”

While a formal decision is pending, Coutinho believes that abandoning the policy might be the most effective way to prompt manufacturers to lower their prices. The government asserts that it can still achieve the target of 600,000 heat pump installations through alternative schemes and incentives.

In anticipation of the impending targets, manufacturers initiated price hikes last year. In September, Worcester Bosch, the UK’s largest manufacturer, announced price increases of up to £300, citing the insufficient scale of the UK heat pump market as the reason for the hike and the inevitable fines they would face.

While the Department for Energy Security and Net Zero has not made a formal announcement, a spokesperson stated, “We remain committed to our goal of installing 600,000 heat pumps annually by 2028. We aim to do this without imposing burdens on consumers, having increased our heat pump grants by 50% to £7,500 – one of the most generous schemes in Europe. This pragmatic approach has shown positive results, with nearly a 50% increase in applications in December 2023 compared to the same month in 2022.”

The post UK government considers scrapping ‘Boiler Tax’ amidst Rising costs concerns appeared first on Electric Home.

Recent data from the official standards body for renewable technologies, MCS, reveals that the country has witnessed a remarkable increase in the installation of these energy-efficient solutions in both households and businesses.

Record-Breaking Installations

In the first half of 2023 alone, over 120,000 certified installations of heat pumps, solar panels, and other renewable technologies have been logged. This marks a substantial increase compared to previous years, demonstrating a growing embrace of sustainable energy solutions in the UK.

The data also shows that monthly installations have consistently surpassed 3,000 for the first time this year, indicating a steady upward trend in renewable energy adoption. This positive trajectory suggests that nearly 250,000 households could potentially have renewable energy installations by the end of the year.

Government Targets and Incentives

The UK government has set ambitious targets to accelerate the transition to renewable energy. By 2035, the country aims to achieve a solar capacity of 70GW and install 600,000 heat pumps annually by 2028. To incentivize the adoption of these technologies, the government has introduced schemes to provide financial support.

Under the boiler upgrade scheme, eligible homeowners in England can receive grants ranging from £5,000 to £6,000. In Scotland, the incentive is even more substantial, with grants between £7,000 and £9,000, along with an optional loan of £7,500. These financial incentives aim to make renewable energy installations more accessible and affordable for households across the country.

Positive Impacts and Cost Savings

Norman Pitt, a homeowner who took advantage of the government scheme, had solar panels, a heat pump, and batteries installed in his home. Despite the initial cost of nearly £30,000, Norman believes it was a wise investment. He shared, “Putting aside the upfront costs, our electricity consumption costs have dropped significantly. We are going green, saving our planet. We have also purchased an electric car, and the overall costs of this installation are comparable to what I used to spend on fuel. We are extremely pleased with the results.”

The adoption of renewable energy technologies not only contributes to a greener future but also provides significant cost savings in the long run. Many households experience a substantial reduction in their energy bills, thanks to generating their own clean energy and reducing reliance on traditional fossil fuel sources.

The Importance of Affordability and Accessibility

While the current government scheme has facilitated a considerable increase in installations, there is still a need to address affordability and accessibility concerns. For many households facing a cost of living crisis, investing in renewable energy installations may be financially unattainable. It is crucial to ensure that initiatives prioritize those most in need to address energy poverty and provide equitable access to clean energy solutions.

Aimee Ambrose, a professor of energy policy at Sheffield Hallam University, emphasizes the importance of prioritizing households that struggled to heat their homes during the previous winter. She suggests that government intervention is necessary to ensure that landlords support their tenants by providing safe and warm homes.

MCS’s Call for Expansion and Workforce Development

MCS, the body accrediting low carbon products, calls for an expansion of the boiler upgrade scheme to provide more substantial grants and vouchers each year. In addition to financial support, there is a need to focus on building up the installation workforce to meet the government’s ambitious targets.

Ian Rippin, CEO of MCS, highlights the increasing consumer confidence in investing in small-scale renewables. However, he emphasizes the importance of making the transition to renewable energy even easier. This includes streamlining the installation process, reducing costs, and improving accessibility and affordability for all households.

The Government’s Response

In response to the growing demand for renewable energy installations, a spokesperson for the Department for Energy Security and Net Zero highlights the government’s significant investments in improving energy efficiency across the country. They mention that £6.6 billion has been invested in upgrading 2.5 million homes, resulting in 47% of homes having a rating of C or above. The Great British Insulation Scheme aims to further support an additional 300,000 homes by extending the legal duty on suppliers to help customers insulate their homes.

The government remains focused on achieving its target of 600,000 heat pump installations per year by 2028. The grants offered towards the cost of installations, ranging from £5,000 to £6,000, are instrumental in incentivising households to embrace renewable energy solutions and contribute to the national transition to a low-carbon future.

The post UK Sets New Records for Heat Pump and Solar Panel Installations appeared first on Electric Home.

A UK Government spokesman said the Department for Energy Security and Net Zero still aims to phase out the installation of new and replacement gas boilers by 2035 at the latest.

It comes as Michael Gove hinted that plans to replace gas boilers with heat pumps in homes should be reviewed in a recent interview.

The Government plans to phase out gas boilers by 2035.

On the question of targets to install heat pumps in new homes, Gove said: ‘That is one area that I do think that we need to review … it’s important that new homes meet net zero standards but one of the challenges that we have is with our existing housing stock.’

But when asked about plans to review the proposal to replace gas boilers with heat pumps, a UK Government spokesman told This is Money: ‘We are aiming to phase out the installation of new and replacement natural gas boilers by 2035, at the latest, in line with the natural replacement cycle and once costs of low carbon alternatives have come down.

‘This includes phasing out installation of new hydrogen-ready boilers in areas not converting to hydrogen. This will ensure that all heating systems used in 2050 are compatible with net zero.

‘We will further consider the Net Zero Review’s recommendation in relation to this ambition.’

The Boiler Upgrade Scheme is the Government’s flagship scheme to achieve this. In March, the scheme was extended by three years to 2028 with a target of installing 600,000 heat pumps a year by then.

Under the scheme, the Government is currently offering households a grant of £5,000 to install an air source heat pump, or £6,000 for a ground source heat pump.

The post Government will not delay proposals to replace gas boilers with heat pumps appeared first on Electric Home.

Despite the slow adoption of the £5,000 government vouchers to assist with the cost of exchanging a gas boiler for an air source heat pump, the survey conducted by the Nesta innovation charity found that people who have heat pumps installed in their homes expressed comparable levels of contentment to those with gas boilers.

The level of contentment among those who put in a heat pump in either a new-build home or an older one was more than 80%, regardless of the continued worries that heat pumps function better only in contemporary buildings.

The largest inquiry into how households have reacted to heat pumps to date is believed to be the survey of more than 2,500 domestic heat pump owners and more than 1,000 domestic gas boiler owners in England, Scotland and Wales during the last winter season.

Gabriel, the leader of sustainable development at Nesta, asserted that the results should dispel “outdated” apprehensions about the low carbon heating technology and motivate the government to “intensify” its mission to supersede fossil fuel heating.

The government’s plan to have 600,000 heat pumps installed in the UK annually to reduce carbon emissions has come under fire due to worries about their efficiency.

In the last fiscal year, just over a third of the government’s £5,000 vouchers for replacing a gas boiler with a new heat pump were taken up by households. Usage of the grant was relatively slow.

Eunomia Research and Consulting conducted a survey that revealed that a majority of households, 81%, were equally or more content with their heat pump compared to prior heating systems such as gas boilers, electric heating, or oil and LPG boilers.

The level of satisfaction for households inhabiting Victorian or older buildings was found to be 83%, which appears to disprove the idea that heat pumps are only useful in newer constructions or those that have had considerable energy efficiency improvements.

Gabriel remarked that the installation of heat pumps in all types of British homes has demonstrated that the age of a property is no longer necessarily a deciding factor for getting an eco-friendly heating system.

When it comes to running expenses, a significant worry for households that are thinking of getting a heat pump, the survey revealed that two-thirds of heat pump owners and almost sixty percent of gas boiler owners were content, regardless of not having done any significant energy efficiency improvements.

The survey determined that a combination of building fabric upgrades with heat pump installations is frequently done, although not always. Approximately 36% of those who had a heat pump installed had already done loft insulation prior, with 23% choosing to add wall insulation or extra window glazing. However, only 14% decided to implement multiple measures.

Clem Cowton, Octopus Energy’s director of external affairs, noted that the survey’s results were consistent with the tremendous demand the company has observed for its heat pumps.

Octopus has reported that it has an estimated 50,000 households wanting to get one of their heat pumps installed. To fulfil this request, the company is currently training hundreds of fitters in the UK. Additionally, they have recently invested in Renewable Energy Devices, a heat pump maker based in Northern Ireland, to manufacture around 1,000 units every month.

Cowton stated that the government should be sure in their decision to take away the taxes associated with household electricity bills, as well as modernizing the regulations for heat pumps to make them more cost-effective and secure for everyone to utilize.

The post Over 80% of UK households that have switched from gas to a heat pump ‘satisfied with system’ appeared first on Electric Home.

Buying and installing Octopus’s new self designed heat pump will cost homeowners as little as £2,500.

It comes weeks after British Gas separately announced it would fit heat pumps for as little as £2,999, kicking off a price war. Octopus currently charges £3,000 and upwards.

Installing a heat pump can currently set homeowners back by between £7,000 and £13,000 when costs such as home adaptations are factored in. A government voucher can knock £5,000 to £6,000 off the final bill.

Octopus said the overall cost of its new heat pumps will start at £2,500 when government grants are included. However, most consumers are expected to end up paying between £3,000 and £3,500, depending on the size of their home.

That is roughly on par with what it costs to install a typical gas boiler – and cheaper in some cases.

Heat pumps draw warmth from outside air and run on electricity, an increasing proportion of which comes from green sources such as wind and solar power. They are seen as the future of home heating as Britain moves towards net zero.

However, adoption has so far been slow because of the prohibitive cost and the home adaptations that are needed in many homes to make them effective.

Official figures show the Government’s boiler upgrade scheme only issued 7,600 vouchers out of a total 30,000 available for this financial year. The scheme was launched at the end of May 2022.

A price war among major suppliers could help bring down costs. Greg Jackson, Octopus’s chief executive, said engineers have shrunk the cost of manufacturing the heat pumps, reducing the total cost to consumers.

“It’s designed to be lower cost hardware, lower cost to install and to be able to cover a bigger percentage of UK homes. It’s a serious breakthrough,” he said of Octopus’ new device.

Mr Jackson said: “At the moment, if we have to buy a heat pump, typically we are looking at £3,000 for the hardware. This will now enable us to get hold of them for £1,500.

“It’s a bunch of major leaps forward and we can keep on pushing prices downward from there.”

The new heat pump was designed by engineers at the Octopus research and development centre in Slough and staff at RED, a Northern Irish heat pump business which the company acquired last year.

Octopus has begun to manufacture the devices and plans to launch them in the second half of this year. It plans to sell the heat pumps both to its own customers and third parties.

The Government wants to rapidly increase the number of heat pumps being installed, as part of efforts to replace gas boilers to cut carbon emissions.

The post Octopus Energy launches heat pump as cheap as a gas boiler as battle with British Gas intensifies appeared first on Electric Home.