Space heating and hot water accounts for 80% of final residential energy consumption in the UK.  70% of our heating requirements are met by burning natural gas, resulting in 20% of the UK’s CO2 emissions. Ground source heat pumps significantly reduce this negative environmental impact by using underground pipes to extract natural heat from the ground to heat radiators, underfloor or air systems and water.

Buildings like retirement homes, which need to be warm and cosy all day, can be particularly difficult to heat efficiently. Running a heat pump costs around 30% less than an equivalent gas boiler, 40% less than oil and 60% less than LPG, so as well as reducing carbon emissions, they can also lower energy bills. Heat pumps also have a longer life than combustion boilers and require less maintenance. The ground stays at a fairly constant temperature under the surface, so the heat pump system can be used throughout the year.

Our investment forms part of a £4.1 million seven-year bond, financing the rollout of 100 ground source heat pumps to retirement homes across England and Wales. Rendesco achieves a return on its investment through the government’s non-domestic Renewable Heat Incentive (RHI) scheme, a 20-year inflation-linked subsidy. This model will allow Rendesco to repay the bond in full within seven years. The funds have come from a £1 million investment allocation that Thrive has ringfenced for new sustainable energy technologies, such as heat, energy storage and other innovative solutions.