The UK’s first investor-funded ground source heat pump network has broken ground in South Wales. Installed by British heat pump manufacturers Kensa and backed by funds managed by Octopus Energy’s renewable arm, Octopus Energy Generation, the project showcases a renewable heating method set to power millions of homes and kickstarts a new £100 billion UK asset class in clean energy infrastructure.
Funded networks, like the one being installed for 114 new homes at the Parc Eirin development in Tonyrefail, will be a cornerstone of the UK’s energy transition. By 2040, 250,000 homes a year are expected to connect to one of these networks.
The funded network model creates a new, subsidy-free way to install clean heat, making it easier than ever for millions of households to benefit from the high-efficiency and reliability of ground source heat pump technology.
Once complete, each Parc Eirin property will be fitted with a compact Kensa Shoebox NX ground source heat pump, housed inside the property like a traditional gas boiler. This shared underground infrastructure mirrors the way existing utilities like water, gas, and broadband are delivered, where the customer doesn’t have to pay the upfront installation cost.
The system uses underground pipes connected to a compact heat pump inside each home, offering the familiarity of a gas boiler but with lower running costs and dramatically reduced carbon emissions. Kensa’s high-efficiency ground source heat pumps can deliver low-carbon heat, cut energy bills, ease pressure on the grid, and work for virtually any property, from new builds to terraced houses and top-floor flats.
The cabinet secretary for housing and local government, Jayne Bryant, said: “The homes at Parc Eirin will be climate-friendly and future-proof - a fantastic example of how the ground source heat pump network can be both innovative and commercially viable.
“I’m so proud of our work with partners like Tirion Homes to deliver even more affordable and energy efficient homes across Wales, and I can’t wait to see this project delivering for households, the local economy and the environment for many years to come.”