Octopus Energy and Legal & General have jointly invested £70mln in a ground source heat pump firm The Kensa Group, in a move aimed at reducing costs for customers switching to greener energy options.
The investment into The Kensa Group, a leading manufacturer and installer in the field, marks the largest investment ever made in ground-source heat pumps in the UK.
A ground source heat pump, also known as a ground-to-water heat pump, uses heat from the ground surrounding your residence to warm your radiators or underfloor heating system.
Additionally, it can effectively heat the water stored in a hot water cylinder for your household's hot taps and showers.
Kensa intends to install 50,000 ground source heat pumps annually by 2030, a target that is expected to create over 7,000 jobs in the green sector.
Currently, these devices offer a more energy-efficient alternative to traditional gas boilers, but their steep price tag deters many homeowners, costing as much as £49,000 to purchase and install.
They also require a lot of space to install.
Zoisa North-Bond, chief executive of Octopus Energy’s investment arm, said: “The heat pump revolution is off to a flying start: it's a tried and tested replacement for gas boilers and can drive down consumers' energy bills for good.”
The UK aims to achieve 600,000 heat pump installations per year by 2028. In line with this shift, British Gas has announced plans to hire and train 3,500 engineers in the next decade to specialise in green skills, including heat pump installation.