EDF has made its first investment in the UK heat pump market, forming a strategic partnership with Clacton-based heat pump installer CB Heating.
The investment takes the form of a convertible loan, whereby EDF has the option to convert the loan amount into a majority stake in CB Heating. The agreement also entitles EDF to purchase the remaining equity at the point of conversion.
Under the partnership, EDF will offer end-to-end installation services to its three million customers from CB Heating’s 500-strong Heat Pump Installers Network. Its investment will additionally support the development of a new academy, which could potentially train up to 4,000 new installers per year starting from Autumn 2022.
The announcement comes ahead of the launch of the government’s new Boiler Upgrade Scheme, which offer upfront grants of up to £5,000 towards the cost of installing an eligible heat pump system and will open to voucher applications on 23 May.
Philippe Commaret, Managing Director for customers at EDF, said: “The more we can do now to invest in decarbonisation and help Britain move away from gas, the better we will be able to protect households from the volatility of global fossil fuel markets.
He continued: “I am delighted that we are now making this strategic investment in and partnering with CB Heating, whose experience and excellence in the heat pump market makes them a stand-out installer.
“This is the first step in delivering on our long-term strategy of decarbonisation of heat. Through investment in training and upskilling engineers in each region of the country through the unique HPIN academy, this ambitious and regionally focussed approach will see EDF working with smaller businesses and local installers to help Britain achieve net zero.”
CB Heating managing director Clayton Browne said: “The creation of our Heat Pump Installer Network – HPIN, has enabled us to carry out installations on a national scale by working with local heating companies across the UK.”
He said: “Our new HPIN training academy will be able to train over 4,000 engineers a year with dedicated heat pump training facilities unlike anything else currently available to any heating installer in the UK.”
Business and energy minister Lord Callanan commented: “With £5,000 grants becoming available through the government’s Boiler Upgrade Scheme, heat pumps are going to be the affordable, convenient and obvious choice for consumers looking to replace a gas or oil boiler.
“This will open up huge opportunities for private sector investment, which companies like EDF and CB Heating are already taking advantage of, ensuring installers are ready to help households move to cleaner heating to keep their homes warm and avoid the volatile prices of fossil fuels.”