Each of the three blades stretches 115 metres, longer than a Premier League pitch and seven metres beyond the previous British record, also held by manufacturer Siemens Gamesa. All 285 blades destined for the project’s 95 turbines are being rolled off the production line at the firm’s Hull factory, in a significant boost for the city’s burgeoning role as a hub for British wind manufacturing.

Standing 262 metres from sea level to blade-tip when fully erect, taller than the observation deck of London’s Shard, the 14MW Siemens Gamesa machines have a rotor diameter of 236 metres. A single rotation will generate enough electricity to power a UK home for more than four days, charge roughly 1,700 mobile phones, or brew nearly a thousand cups of tea.

When fully operational, the 1.4GW scheme off the Suffolk coast will rank among the largest offshore windfarms anywhere in the world, supplying clean power to the equivalent of 1.3 million British homes.

Charlie Jordan, chief executive of ScottishPower Renewables, hailed the moment as a “defining” one for the UK industry. “This is a UK industry first for ScottishPower, Iberdrola and Masdar as we celebrate and accelerate the deployment of homegrown renewable energy at scale,” he said.

“East Anglia THREE will be the biggest and most powerful offshore windfarm in our portfolio. That means billions of pounds invested in UK and global supply chains, thousands of jobs supported during construction, more than a hundred long-term roles created in the East of England, and greater energy security, with more clean power coming on to the grid than ever before.”

The project marks a flagship collaboration between Spanish-owned ScottishPower’s parent Iberdrola and Abu Dhabi’s clean energy giant Masdar. Husain Al Meer, Masdar’s director of global offshore wind, called the installation “a truly monumental achievement” and signalled the developer’s wider European appetite.

“We see tremendous potential for offshore wind, not just in the UK but across the wider European market, where offshore wind can provide critical energy security, power economic progress and help nations achieve their clean energy objectives,” he said.

For Hull, the project further cements the Humber’s position at the heart of Britain’s offshore wind supply chain. Siemens Gamesa now employs more than 1,400 people at the East Yorkshire facility, with a long-running apprenticeship scheme bringing through the next generation of skilled workers.

Darren Davidson, UK head of Siemens Energy and Siemens Gamesa, said: “These are the biggest blades ever built for a project in UK waters, a real landmark for offshore wind. We’re proud that these record-breaking blades have been manufactured at our factory in Hull.”

Installation has been entrusted to Danish specialist Cadeler, whose O-class Wind Osprey jack-up vessel lifted the first turbine into place. It will be joined later this month by sister vessel Wind Pace, a next-generation P-class unit purpose-built for the larger turbines now coming to market, on its maiden European deployment.

Mikkel Gleerup, Cadeler’s chief executive, said the dual-vessel approach would allow a “consistent and efficient installation pace throughout the campaign”, adding that Wind Pace “brings increased capacity and operational flexibility” to the programme.

With ministers under pressure to revive momentum behind the UK’s offshore wind pipeline following recent auction setbacks and supply chain pressures, East Anglia THREE’s record-breaking start offers a welcome shot in the arm for an industry central to Britain’s net zero ambitions.

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Chief executive Greg Jackson said the company had experienced a “huge jolt” in demand across a range of low-carbon technologies, including heat pumps, electric vehicles and home charging systems, as households react to renewed volatility in fossil fuel markets.

The spike in interest follows a rapid increase in wholesale oil and gas prices after the outbreak of the US-Israel conflict with Iran, which has disrupted supply routes and heightened concerns over future energy costs.

Jackson said consumers are increasingly looking for ways to reduce their dependence on traditional energy sources, particularly as the prospect of higher bills looms later in the year.

He warned that households are “very likely” to face increased energy costs from July, when Ofgem resets its price cap. While the cap will reduce bills slightly from April for a three-month period, rising wholesale prices are expected to reverse that trend.

The combination of short-term relief and longer-term uncertainty has created what Jackson described as a confusing environment for consumers, but one that is driving behavioural change.

“People are saying, ‘we’ve just got to do something about it’,” he said, noting a 50 per cent increase in solar sales and a 30 per cent rise in heat pump demand in the first three weeks of March compared with February.

Enquiries about electric vehicles have also climbed by more than a third, while interest in home chargers has risen by around 20 per cent.

The current situation has drawn comparisons with the energy crisis following Russia’s invasion of Ukraine in 2022, although Jackson said the UK is unlikely to experience the same level of price shock.

Even so, the latest surge is reinforcing the case for accelerating the transition to renewable energy and electrification.

Jackson argued that reliance on fossil fuels leaves economies vulnerable to sudden price spikes, as supply constraints can quickly drive costs higher.

The rise in energy prices has reignited debate over the UK’s energy strategy, with some calling for increased domestic oil and gas production.

However, Jackson dismissed the idea that expanding North Sea drilling would significantly improve resilience, describing its potential impact as minimal in the context of global markets.

Instead, he emphasised the need to focus on reducing electricity costs and expanding renewable generation, which he said would provide more stable and predictable pricing over time.

Jackson also pointed to differences in how countries are approaching the energy transition, contrasting Europe’s slower, more cautious approach with China’s rapid investment in renewable infrastructure.

China, he said, is prioritising energy security and resilience by scaling up solar, wind and other clean technologies, while Europe remains caught in debates over the pace and direction of change.

The shift towards renewables is also being supported by improving affordability of electric technologies. Jackson noted that electric vehicles are now approaching price parity with petrol models, with the growth of the second-hand market helping to broaden access.

He added that the gap between higher- and lower-income households in accessing EVs is narrowing, suggesting that electrification could become more inclusive over time.

Beyond energy, Jackson highlighted the broader economic and technological changes underway, including the rapid development of artificial intelligence.

He warned that AI’s “relentless pace” could transform labour markets, requiring societies to adapt quickly to new realities.

At the same time, he emphasised the importance of social support systems in enabling individuals to navigate periods of disruption and transition.

For now, the immediate impact of the energy shock is clear: households are accelerating their adoption of technologies that offer greater control over energy use and costs.

The surge in demand for solar panels and other clean technologies suggests a structural shift in consumer behaviour, driven not just by environmental concerns but by economic necessity.

As global energy markets remain volatile, that shift is likely to continue, reinforcing the role of renewables as both a cost-saving measure and a strategic response to geopolitical uncertainty.

The post Octopus Energy sees solar sales surge 50% as households react to energy shock appeared first on Electric Home.

The move represents a significant shift in how solar energy is deployed in the UK, lowering barriers to entry for consumers and enabling millions of households to generate their own electricity without the need for professional installation. The initiative forms part of a broader strategy to reduce reliance on volatile fossil fuel markets, particularly in light of recent geopolitical instability impacting global energy prices.

The new “plug-and-play” solar systems, already widely used in parts of Europe, allow users to connect solar panels directly into a standard mains socket. This enables homes to generate electricity instantly, reducing reliance on grid power and lowering energy bills.

Major retailers including Lidl and Amazon are expected to stock the devices, while manufacturers such as EcoFlow are working alongside government to bring products to market.

The simplicity of installation is seen as a key breakthrough. Unlike traditional rooftop solar systems, which require professional fitting and significant upfront costs, plug-in systems are designed to be accessible, affordable and quick to deploy, potentially opening up solar energy to renters and households previously excluded from the market.

Ed Miliband framed the policy as both an economic and strategic necessity, linking it directly to the ongoing energy price volatility driven by global conflicts.

“The only way for households and businesses to have certainty is to invest in clean homegrown power,” he said, adding that the government is determined to “fight people’s corner” by expanding access to low-cost renewable energy.

The policy is designed to address two interconnected challenges: reducing household energy bills and strengthening national energy security. By enabling decentralised energy generation, the government hopes to reduce exposure to international gas markets and stabilise long-term costs.

Alongside plug-in solar, the government confirmed the introduction of the Future Homes Standard, which will require most new homes in England to include solar panels and low-carbon heating systems as standard.

New properties built under these rules are expected to produce at least 75% fewer carbon emissions than homes constructed to 2013 standards, while saving households up to £830 per year on energy bills.

Steve Reed said the reforms would ensure that the next generation of housing is both more affordable to run and more resilient to global energy shocks.

“Building 1.5 million new homes also means building homes that are cheaper to run and warmer to live in,” he said.

The integration of solar and heat pump technology into new builds is expected to create a more efficient and self-sustaining housing stock, reducing long-term energy demand and supporting the UK’s net zero targets.

In a further step, the government is launching a scheme to offer discounted electricity during periods of high wind generation. Currently, excess wind energy is often curtailed due to grid constraints, with wind farms paid to reduce output.

Under the new approach, households and businesses, particularly in regions such as Scotland and the East of England, will be able to access cheaper electricity when supply is abundant, improving efficiency and reducing waste.

This marks a shift towards a more flexible energy system, where pricing and consumption are better aligned with renewable generation patterns.

The proposals have been widely welcomed across the energy and business sectors, with industry leaders highlighting the potential for both economic and environmental benefits.

Greg Jackson said demand for solar and electrification technologies has surged in recent weeks, noting a 50% increase in interest since the start of the Middle East conflict.

He argued that expanding access to solar, heat pumps and battery storage would not only cut bills but also enable households to generate and sell electricity back to the grid, fundamentally changing how consumers interact with the energy system.

Similarly, executives from E.ON UK, Centrica and EDF emphasised the importance of combining infrastructure investment with consumer-facing solutions to deliver meaningful change.

Industry bodies including Energy UK and Solar Energy UK described the reforms as a “landmark moment” that could accelerate investment, strengthen supply chains and create skilled jobs.

Despite the positive reception, the success of the policy will depend on effective implementation. Key challenges include ensuring product safety standards for plug-in solar systems, managing grid integration, and maintaining affordability for consumers.

There are also broader structural issues to address, particularly the relatively high cost of electricity compared with gas in the UK, which could affect the pace of electrification.

However, experts agree that the direction of travel is clear: decentralised, low-carbon energy systems are set to play an increasingly central role in the UK’s economic and environmental strategy.

The introduction of plug-in solar represents more than a policy tweak, it signals a fundamental shift in the relationship between households and energy.

By enabling individuals to generate, store and potentially sell electricity, the government is moving towards a more participatory energy system, where consumers become active contributors rather than passive users.

As geopolitical instability continues to expose the risks of fossil fuel dependence, measures such as these are likely to become central to the UK’s long-term resilience.

For households, the promise is clear: greater control over energy, lower bills, and protection from global shocks. For the wider economy, the reforms mark a significant step towards a more secure, sustainable and self-sufficient energy future.

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Scottish Power said it had expected to secure a contract under Allocation Round 7 (AR7) of the government’s Contracts for Difference (CfD) scheme for its proposed £4 billion East Anglia One North offshore wind farm. The project, located off the Suffolk coast, has planning consent and could generate enough electricity to power up to 900,000 homes.

Instead, it lost out to six rival offshore wind schemes, five of which are being developed by RWE, including two projects that have yet to receive planning consent.

Keith Anderson, chief executive of Scottish Power, said the outcome raised concerns about whether the auction design is aligned with ministers’ ambition to deliver 95 per cent clean electricity generation by 2030.

“We had a literally shovel-ready project,” Anderson said. “We would have taken a final investment decision the day after being awarded the contract. Construction would have started immediately and the project would have been at full output before the end of 2030.”

By contrast, he argued, several successful bids were at an earlier stage of development. “[Some] didn’t have supply chains secured and won’t be built until probably 2031 or 2032. Two of the projects that won a contract don’t even have planning consent.”

The government altered the rules of AR7 to allow projects that had not yet secured full development consent to participate, broadening competition but, critics say, increasing delivery risk.

The CfD scheme guarantees renewable generators a fixed “strike price” for the electricity they produce, providing long-term revenue certainty in exchange for committing to deliver capacity at scale. Winning a CfD contract is typically a prerequisite for securing final investment and supply chain commitments.

Industry observers note that previous rounds have exposed the fragility of project economics when inflation surges or supply chains tighten. In 2023, Ørsted withdrew from its Hornsea 3 offshore wind project despite having secured a contract, citing sharply rising construction costs that rendered the agreed strike price commercially unviable.

Anderson warned that similar risks may now be embedded in AR7’s outcomes. “We have highlighted to the government that encouraging bids before projects are consented or before supply chains are locked in increases the risk that projects simply won’t get delivered.”

Scottish Power is now urging ministers to move swiftly on the next auction round, arguing that East Anglia One North could still contribute materially to the 2030 target if awarded a contract this year.

“We can still get that project built by 2030,” Anderson said. “But we need certainty.”

RWE rejected suggestions that its projects were overly speculative. A spokesperson said the company was “very well advanced” in securing consent for the two outstanding schemes and progressing supply chain negotiations across all its AR7 projects.

“Given RWE’s extensive experience in delivering offshore wind, subject to consent and timely grid connection, we are confident our AR7 projects will be delivered,” the company said.

Grid connection remains a significant variable. Even fully consented offshore wind projects face delays if transmission infrastructure is not available, a bottleneck that has become increasingly prominent as renewable capacity accelerates.

The Department for Energy Security and Net Zero defended the AR7 process, saying the auction “puts us firmly on track to take back control of our energy system by delivering clean, home-grown power by 2030.”

The dispute highlights a broader tension in the UK’s energy transition: whether policy should prioritise near-term certainty and construction-ready projects, or widen participation to maximise competition and long-term pipeline development.

With offshore wind central to the government’s decarbonisation strategy, and billions of pounds of capital at stake, the credibility of delivery timelines will now be closely watched by investors, supply chains and ministers alike.

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The investment spans carbon removal ventures, heat battery technology and solar-plus-storage infrastructure, as the UK-based group accelerates plans to deploy $2bn across the US energy transition by 2030.

Through its investment funds, Octopus will back two Californian carbon removal companies focused on grassland restoration and reforestation. The projects aim to convert degraded land into high-quality carbon-absorbing assets, with several major technology firms already positioned as buyers of carbon credits.

The company will also fund heat battery systems designed to replace fossil-fuel boilers in hard-to-electrify industries. Developed in the Bay Area, the technology stores renewable energy as heat, offering an alternative to gas-powered industrial processes.

In addition, Octopus is acquiring a solar and battery storage project in California, expected to be fully operational by July 2026. The scheme will harness the state’s abundant sunshine to provide dispatchable clean electricity.

The move builds on earlier US investments by Octopus, including backing floating offshore wind firm Ocergy and solar projects in Ohio and Pennsylvania. Through its US retail arm, the group already supplies renewable power to customers in Texas.

Chief executive Zoisa North-Bond said the investment reflected strong alignment between the UK and California’s clean energy ambitions. “With supportive policy and world-class entrepreneurship around Silicon Valley, California is an ideal place for long-term partnerships that can deliver growth and returns back to the UK, according to CBI data” she said.

The announcement was made during a visit to Octopus’s London headquarters by the Governor of California.

Britain’s clean energy economy expanded three times faster than overall GDP in 2024, according to the Confederation of British Industry, while California now generates more than two-thirds of its electricity from clean sources and aims to reach 100 per cent by 2045.

For Octopus, the Californian push signals not only growing international reach but also an attempt to channel innovation and financial returns from the US back into the UK’s broader growth strategy.

The post Octopus Energy Generation commits $1bn to Californian clean tech expansion appeared first on Electric Home.

On Tuesday, the energy secretary signed off subsidies for 134 new solar farms across England and a further 23 in Wales and Scotland, alongside approval for 28 large onshore wind projects, mainly in Scotland and Wales.

Among the schemes given the green light is the vast West Burton solar farm on prime agricultural land on the Lincolnshire–Nottinghamshire border, as well as one of Britain’s most northerly solar developments on farmland in north Aberdeenshire. Miliband also approved England’s largest onshore wind project in a decade: the 20-megawatt Imerys wind farm on a former mining site in Cornwall.

Under the government’s Contracts for Difference (CfD) system, operators will receive a guaranteed minimum price for the electricity they generate for 20 years, funded through levies on consumer bills.

The announcement was welcomed by renewable energy companies and industry lobby groups, but prompted fierce criticism from countryside campaigners and opposition politicians, who warned of rising costs and the loss of productive farmland.

Claire Coutinho, the shadow energy secretary, said the subsidies would ultimately push electricity prices higher. “Once you add in network charges and the cost of back-up power, the true cost is far higher,” she said. “All this will do is make electricity more expensive. For a stronger economy and better living standards, we need to make electricity cheap.”

In total, the approvals cover 4.9 gigawatts (GW) of solar capacity, 1.3GW of onshore wind and four experimental tidal projects totalling 21 megawatts. The decision follows confirmation earlier this month of subsidies for 8.4GW of offshore wind capacity.

Based on previous developments, the solar projects could occupy more than 40 square miles of land — close to the size of Manchester, which spans about 45 square miles. The solar industry argues that improved panel efficiency will reduce the eventual land take to around 36 square miles, roughly equivalent to the size of Stoke-on-Trent.

Campaigners remain unconvinced. Rosie Pearson, chair of the Community Planning Alliance, said: “This represents further destruction of countryside and best farmland, while warehouse roofs, car parks and houses remain empty of solar panels. Add the pylons that accompany these schemes and rural areas are being industrialised.”

In Scotland, Helen Crawford of the Highland Community Council Convention on Major Energy Infrastructure warned that communities were struggling to keep pace with the scale of development. “The lack of strategic spatial planning has created a democratic deficit between communities and policymakers,” she said.

Industry groups strongly defended the move. James Robottom of RenewableUK said new onshore wind projects would protect consumers from volatile gas prices. Chris Hewett, chief executive of Solar Energy UK, described the approvals as “proof positive that solar provides the cheapest power available”.

Miliband said the decision was about long-term energy security. “By backing solar and onshore wind at scale, we’re driving bills down for good and protecting families and businesses from the fossil-fuel roller-coaster controlled by petrostates and dictators,” he said.

Under the latest CfD round, new onshore wind farms will receive a guaranteed price of £75.50 per megawatt hour (in today’s prices), while solar farms will be guaranteed £68.17. That compares with around £60 per MWh currently priced by markets for electricity delivery in 2028.

If market prices remain below those levels, the difference will be met by consumers through bill levies. The Office for Budget Responsibility has already warned that CfD levies on household and business bills are set to rise from £2.3bn in 2024-25 to about £5bn by 2030-31.

The approvals underline the scale, and controversy, of the government’s renewable energy ambitions, as it seeks to balance climate goals, energy security and the rising cost of living.

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Results from Allocation Round 7 (AR7) show 4.9GW of solar and 1.3GW of onshore wind capacity secured across Britain, reinforcing the pace at which clean power is being rolled out across the country.

Solar projects were awarded contracts at a strike price of £65.23 per megawatt hour (in 2024 prices), below the £70/MWh achieved in Allocation Round 6 and representing the largest volume of solar capacity ever secured in a single CfD auction.

Onshore wind projects were secured at a strike price of £72/MWh, slightly above the AR6 average of £71/MWh but still below the £73/MWh seen in Allocation Round 5, reflecting continued cost stability in the sector.

Once built, the projects announced today will lift the UK’s total CfD-supported wind and solar capacity to 50.6GW, including schemes already operational or under construction. The UK currently has 16.3GW of installed onshore wind capacity and more than 21GW of solar capacity, based on figures up to September 2025.

In total, AR7 has secured 14.7GW of renewable energy projects across all technologies, marking another significant step towards decarbonising the power system and strengthening domestic energy supply.

Frankie Mayo, senior analyst at Ember, said the results underlined the momentum behind clean power deployment across Britain.

“This is a great clean power achievement,” Mayo said. “Wind and solar are unstoppable across Britain, with new projects announced today unlocking access to reliable, homegrown energy and cutting our reliance on volatile fossil fuels for decades to come.”

The latest CfD results come as ministers continue to position renewable energy as central to the UK’s long-term energy security and net zero strategy, with onshore wind and solar increasingly seen as among the fastest and most cost-effective technologies to deploy at scale.

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The Warm Homes Plan, published on Wednesday, will roll out funding over the next five years to support the installation of solar panels, heat pumps and home batteries, alongside new rights for renters. Ministers say the programme will help drive a “rooftop revolution”, triple the number of homes with solar and lift one million people out of fuel poverty.

The policy, first proposed in 2024, has been billed as a response to what the government has described as a national emergency over rising household energy costs. While the announcement has been widely welcomed by the energy and finance sectors, opposition parties warned that households could still face high running costs.

Under the plan, households across the UK will be able to access a mix of grants and low- or zero-interest loans, regardless of income, to support the uptake of green technologies. Ministers estimate that for a typical three-bedroom semi-detached home, installing a heat pump, solar panels and a battery could save around £500 a year on energy bills, although independent estimates from charities such as Nesta and the MCS Foundation suggest savings could exceed £1,000.

For some households, however, upfront costs will remain. Even after subsidies, installing a heat pump typically leaves homeowners contributing around £5,000 themselves.

Prime Minister Keir Starmer said the programme was about fairness as well as climate policy. “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain,” he said.

Energy Secretary Ed Miliband said upgrading homes was central to tackling the cost-of-living crisis and expanding access to technologies that have previously been out of reach for many households. Speaking to the BBC, he said the aim was to widen consumer choice so that heat pumps and solar panels were not “just in the reach of the wealthiest”.

The plan includes an extension of the Boiler Upgrade Scheme to 2029-30, maintaining grants of £7,500 for air-source heat pumps, alongside an additional £600 million to fully fund solar panels and batteries for low-income households. This brings total support for vulnerable households to £5 billion.

The energy industry said the scale and duration of the funding were critical. Dhara Vyas, chief executive of Energy UK, said the £15 billion commitment would provide long-term certainty for investors and businesses, helping to unlock private capital for green technologies. Camilla Born, chief executive of Electrify Britain, a joint campaign backed by Octopus and EDF, said the plan would help reduce bills over time but warned that delivery would be key.

Not all responses were positive. Richard Tice criticised the policy as a waste of taxpayers’ money, arguing it would primarily fund Chinese-made equipment. Government data shows that around 68 per cent of solar panels imported into the UK in 2024 came from China. Miliband said ministers were working to diversify supply chains and increase domestic investment.

The government estimates the scheme will support up to 180,000 jobs in clean heating, although officials acknowledge many roles will come from retraining existing engineers rather than entirely new positions.

Notably, the plan downgrades the role of insulation, which had been a central feature of earlier proposals. Ministers decided not to extend the existing ECO insulation scheme following widespread criticism over poor-quality installations. Aadil Qureshi, chief executive of Heat Geek, said the shift towards supporting emerging technologies such as heat pumps was the right call, arguing that government backing was needed to scale the industry and drive down costs.

The Warm Homes Plan also includes changes affecting renters. From 2030, landlords will be required to ensure rental properties meet a minimum EPC rating of C, up from the current E. The government acknowledged flaws in the existing EPC system, which can penalise homes that install heat pumps, and said reforms to the assessment process would be announced later this year.

Requirements for new-build homes will be set out under the forthcoming Future Homes Standard. Amid concerns that solar panels might be dropped from new housing rules, the government confirmed that new homes would include low-carbon heating, high energy efficiency and solar panels as standard.

Opposition parties remain sceptical. Claire Coutinho warned that without urgent action to cut electricity prices, households risk being saddled with higher running costs despite generous subsidies. The Liberal Democrats said the plan failed to address immediate fuel poverty concerns this winter.

Some industry figures also questioned the balance of support. Dale Vince, chief executive of Ecotricity, welcomed the emphasis on solar but criticised what he described as excessive subsidies for heat pumps, arguing that rooftop solar offered better value for money in cutting bills and emissions.

Despite the criticism, ministers remain convinced that expanding solar generation will be key. By pairing heat pumps with solar panels and batteries, the government hopes households will rely more on home-generated electricity and less on the grid, reducing exposure to volatile gas prices.

Miliband said the UK’s reliance on imported fossil fuels had left it vulnerable to price shocks, pointing to the surge in gas prices following Russia’s invasion of Ukraine. “We are swapping reliance on imported gas for homegrown clean power where we control the price,” he said.

Energy analysts said the decisions were overdue. Jess Ralston of the Energy and Climate Intelligence Unit said while delays had been frustrating for renters living in inefficient homes, the confirmation of tougher standards for new builds would be welcomed by the public and could mark a turning point in improving the UK’s housing stock.

The post UK households set for £15bn boost to install solar and green tech under Warm Homes Plan appeared first on Electric Home.

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.

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Under plans being developed by Ed Miliband, millions of homeowners would become eligible for grants to install solar panels, heat pumps and home batteries, funded through a £13 billion programme over the next four years. The proposals will form the centrepiece of a forthcoming Warm Homes Plan aimed at cutting carbon emissions from Britain’s 30 million homes while easing pressure on household energy bills.

In a notable shift in emphasis, ministers are moving away from a strategy focused primarily on insulation and instead doubling down on domestic power generation and storage. Officials believe that combining rooftop solar with batteries and heat pumps is the fastest and most cost-effective way to reduce bills, with some well-insulated homes potentially paying little or nothing for electricity.

Solar power has emerged as the cornerstone of the plan. Ministers regard it as the cheapest and most reliable way for households to lower energy costs while helping Labour meet its manifesto pledge to cut average bills by £300 by the next election. At the autumn budget, Rachel Reeves announced a £150 reduction in bills through the removal of green levies, but officials privately acknowledge that much of that saving risks being eroded by the long-term costs of decarbonising the electricity system.

“This is all about bills,” one government source said. “Solar and batteries are where households will feel the benefit most quickly.”

As part of the plan, ministers are expected to relax restrictions on so-called “plug-in solar” units – small panels that can be installed on balconies, patios or flat roofs and connected directly to a household power socket. Experts estimate that units costing between £180 and £300 could shave £115 to £180 off annual electricity bills, offering a low-cost option for renters and flat-dwellers without access to a traditional roof installation.

Germany’s experience has encouraged policymakers. After regulations were eased there, more than one million homes installed plug-in solar panels within two years. UK ministers believe similar demand could materialise domestically, with the devices potentially sold through mainstream retailers.

Alongside grants, the government wants to work with banks and energy companies to finance installations with no upfront costs, allowing households to repay the investment over five to ten years via their energy bills. Even while repaying the loan, ministers argue, households would still be better off due to lower overall energy costs.

Energy suppliers are backing the approach. Octopus Energy estimates that, even without subsidies, many households could save around £60 a month on electricity, with savings rising to £90 for some. Its technical director, Nigel Banks, said that up to one million homes with good insulation could become effectively “zero bill” if fitted with solar panels, batteries and a heat pump.

“With flexible energy tariffs, the opportunity is now there for homeowners to effectively pay no energy bills at all,” he said. “Even where that’s not possible, the savings can outweigh the cost of paying off the installation.”

Solar power’s growing role has already reshaped energy policy. This year, solar supplied 6.3 per cent of Britain’s electricity, a 30 per cent increase on the previous year, enough to power around 4.6 million typical semi-detached homes using heat pumps.

However, critics argue the plan will not benefit enough households to justify its cost. The Conservatives said the proposals would fail to address Britain’s structurally high electricity prices. Claire Coutinho, the shadow energy secretary, said: “Despite costing £13 billion, this plan will benefit very few families, while Labour’s rush to decarbonise risks pushing prices higher for everyone else.”

Industry figures remain optimistic. Gemma Grimes, director of policy at Solar Energy UK, said the sector installed 250,000 small-scale rooftop systems in the past year, most paired with batteries. “We have every confidence that 2026 will be even more successful once the Warm Homes Plan is in place,” she said.

The Department for Energy Security and Net Zero said the scheme represented the biggest ever public investment in home upgrades, adding: “We are investing nearly £15 billion to tackle fuel poverty, cut bills and support thousands of clean energy jobs.”

For ministers, the political stakes are high. With energy bills still elevated and scepticism around net zero growing, the promise of “zero-bill homes” is intended to put pounds-and-pence benefits at the heart of the green transition. Whether it can deliver at scale may prove decisive.

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