Ofgem - Experts & Thought Leaders

The UK’s largest installer and operator of last mile multi-utility networks, GTC, and the UK’s pioneering manufacturer and installer of award-winning, British-made, ground source heat pumps, The Kensa Group, have joined forces to deliver a low-cost renewable heating and cooling solution for tens of thousands of new build homes a year – introducing the Networked Ground Source Heat Pump solution. This solution offers a clean alternative to gas, which is planned to be banned in new build developments from next year under the Future Homes Standard, requiring all new homes to have low-carbon heating. The Networked Ground Source Heat Pump solution provides reliable home heating and hot water through a ground source heat pump installed in each property, connected to a shared network of hidden underground pipework, similar to what is installed for other utilities. GTC and Kensa partnership Kensa’s compact 'Shoebox' heat pump will fit neatly under the water cylinder inside the home Kensa’s compact 'Shoebox' heat pump will fit neatly under the water cylinder inside the home, saving valuable space and eliminating the need for any external kit, so there's no visual impact on the property. With up to five times the efficiency of gas and a 30% increased efficiency than an equivalent air source heat pump, these ground source heat pumps require no extra electricity capacity, easing developer concerns about site grid capacity. The GTC and Kensa partnership, the largest to be agreed between a utility infrastructure provider and a UK ground source heat pump manufacturer, will bring significant scale, funding, and technical skill to the deployment of networked ground source heat pumps for the new build market – delivering a complete end-to-end heating, hot water, and cooling solution for housebuilders. Infrastructure and design capabilities Through this groundbreaking agreement, GTC will provide the funded solution to housing developers, along with the design, borehole drilling, and network installation, which can be implemented alongside the other utility networks as part of a one-stop shop. Kensa, which has pioneered networked ground source heat pumps in the UK for more than a decade, will add its expertise in infrastructure and design capabilities and supply its highly efficient, UK-manufactured ground source heat pumps to fit each property. Low-carbon heating solution Networked Ground Source Heat Pump key can also be used to heat and cool any non-domestic structures By joining forces, GTC and Kensa will help UK housebuilders and developers transition to a proven, sustainable, low-carbon heating solution in line with the planned phase-out of gas. It will offer home buyers a lower-carbon, more efficient alternative to individual air source heat pumps. The Networked Ground Source Heat Pump solution can also be used to heat and cool any non-domestic buildings within a development. GTC Executive Chairman, Clive Linsdell, said: “A big challenge housebuilders face is additional grid capacity for low carbon technologies. This partnership brings an end-to-end heat, hot water, and cooling solution with the same power requirements as gas-heated homes. Our working with Kensa provides housebuilders and developers reassurance around the quality of installation and equipment, and homeowners 100% peace of mind in relation to its ongoing operation and maintenance.” Transition to electrified heating Kensa Group CEO, Tamsin Lishman said: “We are delighted to partner with GTC to bring this pioneering heating and cooling solution to the UK's housebuilders. Using the heat from the ground beneath our feet, boosted by Kensa’s small and highly efficient ground source heat pumps, homeowners will enjoy comfort and warmth, at low costs." "We’ve been delivering this proven solution at scale for over a decade, providing reliable home heating to thousands of UK homes, and by working with GTC, we look forward to delivering a successful transition to electrified heating.” Key information GTC’s investment in the system means the cost to developers will usually be significantly lower than installing individual air source heat pumps. Homeowners will also benefit from hassle-free heating and hot water, with costs no higher than if they owned an air-source heat pump. Kensa is the UK's largest provider of networked ground source heat pumps, with a multi-award-winning track record of delivering renewable heating and hot water to a mix of retrofit and new-build projects. The constant ground temperature throughout the year, with no seasonal fluctuations, means higher efficiency and lower running costs for customers connected to networked ground source heat pumps. The latest Passiv Smart Thermostat can also be included, reducing customers’ heating bills by up to 30%. There is also the option to add passive cooling to each home, a capability unique to ground-source heat pumps. With minimal running costs, this can mitigate overheating in summer and provide Part O compliance. Due to the high efficiencies of networked ground source heat pumps, no additional electricity demand is required, making it a great solution for sites already ‘in build’ and moving from gas. The Networked Ground Source Heat Pump solution will be Heat Trust registered and be regulated by Ofgem to ensure homeowners worry-free maintenance, repair, and replacement of the ground source heat pump system. New homes connected to the solution will be fitted with either Kensa’s Shoebox or Shoebox NX ground source heat pumps, providing each property with low-cost, low-carbon heating and hot water, with the capability to deliver passive cooling.

“This week the UK Government published its consultation response about the regulation of heat networks, confirming its intention to introduce new legislation in 2025 to enshrine consumer protections on pricing and performance," said John Marsh, the Chief Operating Officer (COO) at GTC. He adds, "At GTC we welcome regulation and consumer protection, not only does it further highlight the pivotal role of heat networks in the UK’s energy transformation drive, but it protects homeowners connected to heat networks on standards of service and what they pay for their heat, which is crucial." role of heat networks John Marsh continues, "Come 2026, gas installation for new builds will be no more. The FHS recognizes the huge role that heat networks will play in replacing gas, so it is only right that consumers connected to heat networks get similar protections to those currently connected to gas." He further said, "Housebuilders need and want alternative solutions to gas and last year, GTC launched its Community Heat Hub – a networked heat pump solution and our gas replacement for low-rise, low-density homes." Community Heat Hub John Marsh adds, "The Community Heat Hub already provides guaranteed service standards and assurance of reasonable heat bills. Finally, we welcome Ofgem’s role as the regulator for heat, and we already work with them as they regulate our electricity and gas networks.”

Fresh data on the government’s failing Boiler Upgrade Scheme confirms what the industry fears about the cause of slow growth in the heat pump market. Figures released by the energy regulator Ofgem, show a consistent but low number of applications for the £5000 BUS subsidy, compared to what the government expected. heat pump installers Pioneering energy trade body, the Energy and Utilities Alliance (EUA) believes these figures confirm their view that there are too few trained heat pump installers in the UK. The organization has speculated that this would explain why there is a steady, if unspectacular demand for the subsidy vouchers each month. The number of voucher applications received is around 1500 a month, with under 1000 a month actually being paid out. BUS rules Either installers don’t want to comply with the rules, which insist on a minimum level of performance" Commenting on the data, Mike Foster, CEO of EUA said: “We have our concerns over the principle of the Boiler Upgrade Scheme and how it is not the best use of taxpayers’ money, rewarding the well-off not supporting the fuel poor. That said, it seems obvious that there is a problem in the market, not with the administration of the scheme but the lack of trained installers prepared to fit heat pumps under the BUS rules.” “Either installers don’t want to comply with the rules, which insist on a minimum level of performance to benefit the consumer, or there are not enough installers. We think it is the latter.” CHMM quota Mike Foster added, “We told the government months ago their workforce planning was out, by a factor of three, and this data seems to back up our fears. There are simply not enough trained installers to fit heat pumps.” “What the government could do is to scrap their plans to fine boiler manufacturers for not fitting enough heat pumps and instead encourage them to pay for the training of installers. Getting rid of the Clean Heat Market Mechanism (CHMM) quota and fines would be a start. Creating the climate and encouragement for manufacturers to train more installers is a smarter way of delivering more heat pump sales and getting to net zero – which we as an industry are committed to achieving. Otherwise, the CHMM is just a way of adding a boiler tax to gas boilers, with consumers footing the bill for this stealth tax.”